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…
Combining Binary Options with Vanilla Options
The prime motive of a trader should be always risk reduction while benefiting from the price movements in any financial market. In this regard, trading binary (exotic) options in combination with vanilla (plain) options will be very…
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…
Interview with IQ Option
BinaryTrading.com presents a series of articles featuring the perspectives of reputable binary options brokers, so that they can introduce their platforms personally, and so that we can be aware their first-hand take on the issues, perks, and challenges…
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…
Three Ducks Binary Options Strategy
Another binary options trading strategy is one that involves very easy steps that can be performed even by novice binary options traders. The Three Ducks binary options strategy is quite easy to implement….
The Double Red Strategy
Strategies used in binary options trading allow traders to look into immediate price action movements with the use of indicators that have been tried and tested in the market. When using these indicators with the right strategy and the right…
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…
Book Review: Binary Options Trading by Jon McFarlane
It might seem strange, but the book I am reviewing today is a book that will probably talk you out of trading binary options. Moreover, I will say ahead of the full review text that I really recommend…
The Collar Strategy in Binary Options
Many binary options strategies revolve around minimizing risk exposure. The Collar strategy in finance is an example of this strategy. It is a complex binary options strategy utilized by experts for them to minimize their risk and cut their…
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…
Binary Options Hedging Strategy
Binary options traders use hedging to ensure profits and reduce risks especially when volatility is high or market conditions become more unpredictable. Fluctuations in the market can cause trades that are seemingly successful to turn around…
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…
Reading Moving Averages in Binary Options
As we have established time and again, technical analysis is needed to have successful binary options trades. Binary options traders use moving average to smoothen a trend line showing only the averages of price values for a specified period…
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…
Pair Binary Options Trading
So far, we have discussed some strategies that may be employed by new and experienced binary options traders alike. These strategies are used by traders constantly, and are fine-tuned to the specific trading styles of the traders. When…
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…
Ladder Strategy
It’s time to discuss yet another useful strategy used in binary options trading. Like many of the binary options strategies we have discussed, this strategy is actually used in general trading and in other forms of financial market…
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…
Doji Candlestick Combinations
By now we are already knowledgeable in reading candlesticks on their own. We know their parts, their meaning, and the indication of what a binary options trader would do for different kinds of candlesticks seen on historical trend lines. However,…
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…
The Long Shot Binary Options Strategy
The Long Shot binary options strategy is a strategy wherein a trader buys an option that is way out of the money in hopes that the price of the underlying asset will move a long distance across the strike price. Its name,…
Pinocchio Strategy in Binary Options
In this article we discuss yet another trading strategy used by binary options traders. This strategy, like many strategies we have already discussed, is very reliable and highly accurate, especially for professional binary options…
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….