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Trading in binary options is popular with more and more investors become increasingly popular. The reasons are obvious. With relatively little financial input can be achieved above-average returns. The procedure appears as easy as it. The investor decides upon purchase only the direction in which the price of an underlying base value will develop until the expiration date of the option. Was the prediction correct, returns beckon more than 50 percent to classic call and put trading. What sounds at first sight like a kind of roulette, but is based on a previous thorough market analysis, which is based on indicators binary options.
1.) Bollinger Bands — the entry into the world of the chart analysis
The use of Bollinger Bands is the easiest way for beginners Binary optionsto identify indicators. The procedure is very simple. It was named after John Bollinger, of this method for detecting and interpreting in the 1980s trends developed. The basic idea is that there is a mean value in a normal distribution. Future courses are based on the past. The premise is that they are closer to the last courses, as further away. The application is based on the one hand on the use of mathematical formulas, traders, however, are clearly better off with the graphical implementation, as it requires only a few steps to get the necessary information.
To determine three values are required.
- First, the average value is calculated on the basis of the moving average for the past twenty days.
- Thereafter, the bands, in this case, the binary options
However, John Bollinger advises strongly discourage had to use tape as the sole indicators. In practice, always suggests again that the Bollinger Bands pioneering indicators in the field of binary options are, which is not the case. A good knowledge of the market is imperative to predict from the statements of the Bollinger Bands also a trend can.
Conclusion: The Bollinger Bands are based on an average of past values. The calculation of these values is relatively simple and with the help of graphical representations and beginners of this knowledge can benefit.
2.) How to Spot the trend Bollinger Bands
For this chart now a chance for the future price development can be read.The closer example of the price of the underlying is at one of the two tapes, the greater the likelihood that there will be a reversal of the trend, at least for a short breakout in the opposite direction. A trend reversal is suspected in any case, when it’s one of the bands to a plateauing, so a sustained sideways trend comes. The presumption thickens when a repetition of the plateau occurs. Bollinger Bands are dynamic and do not have to develop static analogous to the average.
Conclusion: The Bollinger Bands are able merely to predict whether a trend reversal or a breakout is imminent. During a reversal development describes already in the Word is entirely open in what direction develop at an approaching breakout the trend. Here is an in-depth knowledge of the market to be able to meet required statements.
3.) The economic news as a guide for trend developments
Is this where the underlying is a car share, the situation of the entire auto industry plays a role, the announcement of sales figures from the last quarter also leaves a conclusion about the future price development. Critics assume that the future performance of these indicators are not accurate can be predicted. But the stock market would not be the stock market, if investors with one hundred percent certainty could predict a price performance. Nevertheless, can be achieved in the prediction with a profound knowledge of the market higher accuracy. Most brokers now offer on their sides on economic news. The most important events are again summarized or links provided to original articles are available. Of course, the daily view in the business section of the local press or in online news may like the «Handelsblatt», which does not hurt «business paper» or even the «Wall Street Journal». Especially when you are moving in trading on the international stage also stored there comments from economists particularly helpful. Some brokers offer even weekly tutorials for beginners, in which the economic news will be considered in more detail.This can help to develop a sensitivity for important and less important messages. Note here are not only the market developments in the industry, but also national conflicts or international relations, since it is precisely in our globalized world everything is connected with each other. As is also worthwhile to look at the economic calendar, because even as banal sounding things like «Bank Holidays» can affect the national economy index and thus also on stock prices or currency trading.
Conclusion: Successful trading can be very time consuming at the beginning just because no individual filter techniques are developed and inexperienced traders from the mass of information has to pick the right and important messages. Numerous brokers with pre-filtered and conditioned Business News Here come to his aid.