Binary Options Trading Basics A Simple tactics as 1-2-3

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Binary Options Trading Basics: A Simple tactics as 1-2-3

This strategy in the world of binary options is considered to be one of the oldest. It was used successfully even before the advent of binary options. It was used for many years by many traders. This strategy is based on determining the moment of the trend reversal. In other words, this strategy tracks the moment when the trend is going to change its direction. This strategy works with a long-term, medium and short trend.

In the case of tracking the reversal of the uptrend, we will analyze the low highs.

In the case of tracking the reversal of the downtrend, we will monitor the high lows.

On the chart, we will use 3 points. Hence the name of the strategy.

As an example, we can use the situation when the trend is upward. As we have noted before, this strategy includes 3 points. Let’s analyze with you what point is responsible for what.

  • At the “1” point, we must note the maximum that the uptrend reaches and starts its course in the opposite direction.
  • At point “2” we note the achievement of a minimum price for the rebound and its growth to the maximum.
  • At point “3” we fix the lower maximum, but this is when the price does not return to that same maximum at the point “1”.

Now, marking the points we need on the chart, we will expect a signal for committing to trading. Now we will not need to miss the moment when the price falls below the “2” point. This will be the end of our figure.

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  • Binomo
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This strategy is perfect for novice traders, as it is quite simple to use and does not require special skills. Another plus is the ability to combine this strategy with other tactics, trading tools for both novice traders and professionals. Use it with trend strategies or with those that involve levels of support and resistance.

Binary trading strategy – why do you need it?

Binary trading strategy is the first thing anyone who decides to contact the world of binary options faces. Therefore, there arises a number of questions. What is it? What are trading strategy? How is best to use them? What are the differences between them?

Trading strategy is, first and foremost, trading tool allows you to earn regularly in the financial market. Each individual strategy by professional traders which, in turn, relies on own experience and on the basis of the analysis.

However, not all strategies are equally effective. Different traders approach different strategies. The key success in the proper selection, whichever is clear and approach the trader according to his temperament and trading style.

TYPES BINARY TRADIG STRATEGIES:

BASIC TRADING STRATEGIES: In fact, it is one of the most simple strategies are often quite simple in its use and very profitable. Using them, it is possible to make predictions of the price movement of the underlying asset according to fluctuations in the financial market.

As an example, consider a situation when the release of negative economic news of a particular country will suspend or even reduce the growth of its currency rate and vice versa positive news will reinforce a positive trend. In all likelihood, a natural disaster affect the economy, and then and the exchange rate of the country. On a smaller level, even the temporary difficulties of the company will trigger a downgrade of its stock price, etc. Therefore, all the conclusions and insights that make traders are logical and obvious. However, to do this properly, a trader should find, analyze, make assumptions for the future based on collected relevant information.

INDICES TRADING STRATEGIES: it is easy to guess from the name that this type of strategies based on indicators. In other words, they are based on special trading algorithms. In the trading process there are specific indicators that signal about the special events associated with the price of the underlying asset (in the case of trading binary options).

For example, appeared on a chart the new indicator would indicate a period when best to buy or sell an option or whether you should exit the trade, etc. In trading use multiple indicators, but the more you are going to use in the bidding process, the more likely your forecast will be. Yes indeed, all trading strategies based on indicators are complex. It because they require the setting up chosen indicators, and the chart itself. Doing it right is not all, and as a result, to use this kind of strategies not every trader.

GRAPHIC TRADING STRATEGIES: If you look good at a chart price movement, it will be noticeable that time after time it repeats specific figure. Therefore, these patterns (figures) are taken as a basis for the development of a graphical trading strategies. Remarkable these graphics show line of price movement outlines a familiar figure, that trader could quite easily predict its future movements, taking into account a ready graphical model. This kind of strategies there are a large number. Many of them don’t carry the effectiveness. It is usually graphical trading models in binary options and Forex maket. In the graphical analysis the trader decides on whether to enter a trade or not.

Binary trading without the use of a binary trading strategy is tantamount to playing Russian roulette. Remember, it’s anything good will not come as result from it. Choosing a strategy for trading binary options, you need to be extremely careful. After all, the world is full of all sorts of strategies that promise to WOW the result. Some of them are seemingly simple, others very complicated. Really they are all different, easy to confuse a beginner.

In our turn, we recommend you to use the base materials for binary trading from a trusted binary broker – IQ Options. You can open a FREE Demo account and test various strategies without the risk of losing real money.

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

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Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    The Best Binary Options Broker 2020!
    Good for Beginners!
    Free Education + Free Demo Account!
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  • Binomo
    Binomo

    Only For Experienced Traders!

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