Education

How to Compare Binary Options Brokers

As binary options trading continues to gain prominence as an alternative investment and hedging vehicle, the number of binary options brokers entering the business, to take a slice of the market, has grown manifold. However, not all the binary options brokers will suit…

How to Analyze Performance of Binary Trading Strategy

To succeed in binary options trading, a trader must have a successful trading strategy. There are plenty of strategies available for free in the internet. At the outset, all strategies look great. However, not every strategy suits a trader’s risk profile….

Use of Bitcoin in Binary Options

The exponential growth of binary options trading and introduction of payment system based on the cryptocurrency Bitcoin has together opened a plethora of exciting opportunities for tech savvy investors and speculators. For a beginner who is new to the world of binary options, it may…

Binary Option Price Dependence on Underlying Price

Binary Options Greeks

The fair price of options can be theoretically calculated using a mathematical equation, which is commonly referred to as Black-Scholes model (BSM). The variables in the BSM are represented by the Greek alphabets. Thus, the variables are called as option Greeks. By monitoring…

Index Instruments Overview

The phrase binary options trading have become synonymous to betting on Forex pairs. However, invariably all the binary options brokers offer diversified assets to trade with. These include commodities, stocks and indices. While stocks and indices may…

Cup & Handle Pattern in Binary Trading

The cup & handle is a bullish continuation pattern and is made up of a rounded bottom and a lever like structure. The pattern resembles a tea cup and indicates the probability of an uptrend in the price of an asset. Also called as the saucer and handle, this long-term…

Rectangle Pattern in Binary Trading

When the price of an asset moves between upper and lower limit for a long-period of time, it gives rise to a continuation pattern namely the rectangle. From the perspective of a binary options trader, a rectangle is possibly the most easily identifiable and tradable continuation…

Price Channels in Binary Trading

An elongated rectangle pattern with an upward or downward slope is referred to as a price channel. Being a continuation pattern, the price break out usually happens in the direction of the prior trend. However, trend reversal scenarios can happen occasionally. Thus,…

Triangles Chart Patterns

Chart patterns are an outcome of behavior of all the market participants put together. Since human behavior tends to repeat itself, the chart patterns are repetitive. A triangle is one such continuation pattern, which develops often in a chart….

Pennant Patterns in Binary Trading

A binary options trader who is well-versed in the art of trading a bullish and bearish flag pattern will have no trouble in identifying and trading a pennant pattern. The reason is that both patterns share similar characteristics albeit a small…

Flag Patterns in Binary Trading

A binary option trader should be competent enough to identify and trade both reversal and continuation patterns. The reason is that a trader may not come across a reversal pattern always. After a prolonged uptrend or downtrend, the price of an asset…

Wedges — Falling and Rising Patterns

A binary options trader will often come across two important chart patterns namely the rising wedge and falling wedge. Depending on whether the pattern develops after an uptrend or a downtrend, the rising and falling wedge patterns can result in a reversal…

Rounding Bottom and Top Patterns

Chart patterns, which take several weeks to develop, offer highly reliable trading opportunity to a binary options trader. A Rounding bottom and Rounding top are two such patterns, which can be thought of a Head & Shoulder…

Double & Triple Top/Bottom Patterns in Binary Trading

A double and triple top /bottom pattern is much similar to a Head & Shoulder (top/bottom) pattern in the sense that a price violation above or below (depending on the pattern) the neckline confirms the pattern. However, unlike a Head & Shoulder pattern,…

Head & Shoulders Pattern in Binary Trading

The chart patterns are an outcome of tussle between buyers and sellers to reign over the market. Through chart pattern analysis, a financial market trader will be in a position to forecast a shift in the balance of power and capitalize on the impending price movement. However,…

Binary Trading Glossary

Asset Assets are financial instruments which are traded in the binary options markets. At the Money This term indicates a neutral outcome from a trade. In this situation asset value on expiry is same as on purchasing. In simple words, there…

Point and Figure Charts

The most common methods of representing the price action of a security on a chart are lines, bars and candlesticks. However, there is yet another form of price representation namely point and figure chart. The uniqueness of point and figure chart is that…

20 Things Binary Options Traders Know and Benefit from

Rarely would someone come across an investor who lacks interest in binary options trading. Binary options trading, even though unregulated, continues to lure large chunk of investors on a daily basis. Additionally, advancements in telecommunication facilities have…

Understanding Risk-Reward Ratio in Binary Options Trading

Binary options trading, which is a new age investment vehicle, has grown leaps and bounds in the past few years. Low cost internet connectivity, lack of stringent regulations and simplicity of the concept have contributed tremendously to the exponential growth…

Overview of Existing BO Platforms

What makes binary options easy and convenient is the presence of an integrated environment where traders can access relevant information, execute strategies, and win trades. Binary options brokers offer a variety of features that allow traders to have…

Using Macroeconomic Indicators to Trade Binaries

Trading binary options requires various analytical perspectives that pertain to market sentiment and price movement. This need accounts for the number of factors that are considered before making a decision. Analyses are worthless if they: use…

Comparison of Binary and Vanilla Options

When it comes to options trading, simultaneous actions can affect every single node of a financial market. Buys and sells affect product volume, volatility, and price. Together with the events in the real world, they impact the global market…

Average True Range Indicator

In search for more useful indicators of price movement and strength in the market, J. Welles Wilder, creator of popular ones such as the Relative Strength Index (RSI), the Average Directional Index, and the Parabolic Stop and Reverse, has developed yet another indicator…

Renko Charts

In financial markets, some traders have to consider the time or volume of their trades, whereas some find it possible to trade based on the price changes alone. This concept is the very foundation of Renko charts, in which time and volume…

Using Money Flow Index to Trade Binaries

Here is yet another popular indicator that is used by many binary options traders. Like many indicators, the strategies that revolve around this indicator requires traders to have an in-depth understanding of the underlying factors that…

Using Inside Bars in Binary Options Trading

We would like to continue to help new binary options traders get started with trading by providing helpful tips in both fundamental and technical analysis. Today, we will digest a binary options strategy that is based…

Forex Trading and Binary Options

Trading binary options entails a lot of factors to consider: what strategy to use, what expiry times to follow, how much is a trader willing to invest, and how much risk is the trader willing to take. All these factors,…

Relative Strength Index

The Relative Strength Index or RSI is a type of technical analysis indicator used in trading. It is a momentum indicator, meaning that it shows the strength of the price of a certain asset, thus the “strength” in its name. Momentum is the rate…

Price Action in Binary Options

Binary options trading requires a skill of being able to look into the movement of a price value in terms of level, direction and momentum. These factors can be backed by sentiments in the market, and recognizing pattern and trends can be formed from…

The DeMarker Indicator

Today we discuss yet another technical indicator used by professional binary options traders in reading market sentiment and making better trades. These indicators, as we have known to be common in many charting and trading platforms can…

Commodity Channel Index

It is important to include such indicators in any charting platform that we use in order to make better sense of the raw price data that is being displayed in the charts. These raw data which are seemingly…

Expiry Time Types for Binary Options

Attitude is clearly one thing that every binary options trader must consider in performing trades. The attention that should be given to market sentiment varies from asset to asset, and trading instrument being utilized. There…

Bearish Binary Options Strategy

Beginner level traders often start with the bullish and the bearish binary options strategies. The bullish strategy, which employs the bull spread as previously discussed, utilizes the sudden rise or fall of an asset price to the traders advantage. The foundation of this strategy…

Candlestick Patterns for Binary Trading

We learned that candlestick charting is a useful and popular way to perform technical analysis for binary options. Using candlestick charting, patterns are clearer and easier to identify. Many who have used this type of charting technique…

Accumulation Distribution Line (ADL)

In our other articles we talk about the importance of knowing the volume of a trade for a certain period of time. Relating it to a microeconomic example, consumers are more inclined to participate in a business where many transact with. Volume shows trust…

Introduction to Binary Options Trading

When one thinks of trading, fears of falling initial investment and financial failure always loom. No one is ever prepared to easily lose hard earned money to a bad trade. That is why knowledge of the business is…

Support and Resistance in Binary Trading

In trading binary options, the binary options trader will constantly be looking at charts denoting uptrends and downtrends of each of the assets that they have chosen to trade in. Binary options brokers provide the right tools in order for traders…

The Bull Spread Binary Options Strategy

After acquiring a solid foundation of the basics and terminology used in binary options, the next thing you should know and master are the that will help you increase your profits as well as reduce your risk exposure for each trade….

Bollinger Bands in Binary Trading

We have been talking about indicators that allow you to monitor price action movement and allow you to make trades based on informative tools. Another indicator that binary option traders employ is the use of Bollinger…

Moving Average in Binary Options

In binary options trading, it is essential for the binary options trader to have a basis on a Call or Put action. Different techniques are used to make an informed decision. Some may rely on just financial news and world market trends….

Heiken-Ashi Candles

by Kelly Cromley Binary options and general traders always want a clearer way of validating the trueness of the strength of a trend in any direction. Popular indicators have sprung from techniques that smoothen out the trend lines. Top market analysts…

Price Spreads in Binary Trading

Aside from binary options brokers, charts, and trading strategies, price spreads is one of the most important factors that need to be considered when trading. Most new traders fall into this trap because they…

Charting Tools for Binary Options

Now that we know some of the basic strategies that a new trader can employ, it is time that we learn how to read stock charts that indicate the movement of the prices. This will allow us…

Doji Candlesticks

In this article, we will be talking more on Doji candlesticks, hereon referred to as just Doji, an invariant noun which means it can also denote a plural. We have touched on Doji in our introduction to candlesticks. It…

Break Even Ratios in Binary Trading

In binary options trading, the break even ratio is the percentage of the correct predictions you need to make in order for you not to lose any money. If your percentage of accurate predictions coincides with the break even ratio, then…

Candlestick Charting Basics for Binary Options

We talked about charts that you could use for binary trading and saw how a stock table and a stock chart show the relationship of time and price. Stock charts as we said are in the time domain, where the price is…

Oscillators in Binary Trading

When viewing charts that are non-trending, there are indicators called oscillators that are used. As we have learned, moving averages (MA) and trends are important when a binary options trader studies the direction of a stock….

Fundamental Analysis in Binary Options

As we have established time and again, binary options trading requires different kinds of analyses that pertain to market sentiment and price movement. These analyses are based from the ones used in traditional trading. Since binary options…

On-Balance Volume Indicator

Binary options brokers do not only rely on bare price movements to look at the inner workings of a market. To do so would entail a vast amount of processing power that would require us to use our brains to its…

Binary Options Strategies

When working with binary options, it is imperative that you plan your course carefully. Hard-earned money is usually difficult to risk. Unless you can afford it, it is important to have money-smarts….

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Binary options trading involve risk. Although the risk of executing a binary options open is fixed for each individual trade, it is possible to lose all of the initial investment in a course of several trades or in a single trade if the entire capital is used to place it. It is not recommended to base your investment decisions on any information presented on or originating from BinaryTrading.com. By browsing this website you express your acceptance of the terms of this disclaimer and that BinaryTrading.com cannot be deemed responsible for any losses that may occur as a result of your binary option trading. BinaryTrading.com is not licensed or registered as a financial consultant or adviser. BinaryTrading.com is neither a broker, nor funds manager. The website does not provide any paid services. All content of BinaryTrading.com is presented for educational or entertainment purposes only.

General Risk Warning: Trading in Binary Options carries a high level of risk and can result in the loss of your investment. As such, Binary Options may not be appropriate for you. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk appetite. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

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