The growth of trade binary options knows no boundaries. The number of investors continually rising worldwide. Behind asked about the reasons, these are obvious. With very low stake returns can be generated in a very short time, of which investors in other asset classes only dream. That this is not about gambling, showing traders who recognize signals when trading binary options and enter it with the right strategy. But how to recognize signals?
Technicals is the alpha and omega of successful trading
We have mentioned several times already elsewhere and emphasize it at this point again. ToBinary options to deal with the system, it is imperative to be able to read a chart and identify the appropriate signals. Success in trade stands and falls with the intensity with which the training was operated. A price chart is not just a line with prongs that extends time in this or in the opposite direction. A price chart tells a story and provides material for interpretation. And it is this interpretation of the binary options signals leads to the application of the correct trading strategy.
Support and Resistance — known from film, radio and television
Anyone who has ever watched an economic program on television, knows the terms support and resistance. In the case of supporting the price development goes up, a horizontal line below the highs can be continuously placed basically upwards, it is not broken. In case of resistance, this horizontal line is above the highs of the course and is also not broken. On the contrary, it may even be that can read out the scenario of a downward trend in the image. Exchange rates are based in large part on psychological factors, support and resistance, therefore, are nothing but a reflection of the behavior of investors. But how do you deal with these two horizontal? Very easily. In a long-term support or a sustained resistance to the contra-trend strategy offers. That is, investors are close to the resistance zone on falling or near support zone on rising prices, contrary to the current market direction.
The outbreak — ideal for trend-following strategy
Bucking the trend
«The trend is your friend» — this old adage has quite valid. For trades with a longer maturity but may be useful to a strategy against the trend. Trends do not last forever. Although a brief outbreak means a price reversal for a few moments, this does not change the trend. Long-term developments make it hard. Cancels the ECB for example the interest rate, the trend in the stock markets would develop sooner or later decline. Low interest rates cause high stock prices and high interest rates often result in reverse to a falling stock market.