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Binary Options Strategies

One of the most attractive things about binary options is the high profitability potential in trading.
This being said, it still takes a sound trading strategy and education to be able to sustain consistent profits in binary options.
Binary Brokerz offers binary options contracts with very low expiry times such as the popular 60-second trade, as well as long-term contracts lasting up to 6 months. Short-term strategy such as 5 minute, 60 second, or even 30 second options, varies greatly from long-term trading strategies. In fact, different strategies are used depending on the asset being traded, the amount of volatility on the asset, and the length of the expiry time. The right strategy can mean the difference between a loss and an excellent return on your initial investment. Fortunately, there are some well-understood binary options tactics that can take your trading activity to the next level. While the Classical Call/Put options are the most popular type of binary options, the following strategies are applicable to all binary options types — including Boundary and One Touch options.
  • Fundamental
    Analysis
  • Technical
    Analysis
  • Indicators
  • There are two pillars of fundamental analysis that are important for any trader to know and follow:
    Economic Calendar
    The news releases on the economic calendar are published by both private organizations and a variety of government agencies. They are typically in the form of economic data releases, economic policy changes and political events from countries around the world. These news events provide a basis on which financial trading decisions are made.
    Market News
    Market news differs from the economic calendar by focusing on current news events rather than governmental economic data releases or policy meetings. An example of this could be an exciting new product release that could produce significant movement of that company’s stock price — such as the release of Apple’s newest iPhone. The release of important market news typically affects stocks more than any other type of financial asset.
  • Just as fundamental analysis has two foundational elements, technical analysis does as well. Based on algorithms and mathematical equations, the core concepts of Support & Resistance and Trend Direction
    are the basis for many quality trading strategies used in binary options trading today.
    Support & Resistance
    The Support & Resistance theory involves placing positions on predictive price levels that have been generated by market movements. When looking at a financial chart these price levels will act as barriers that are preventing the price of an asset from getting pushed in a certain direction. The Support lines will show you where to place a “Call” option, whereas the Resistance lines will dictate where to execute a “Put” option.
    Trend Direction
    The Trend Direction is the tendency for the Financial Markets to move towards a particular direction, either upward or downward for a certain sustained period of time. These movements are caused by market news, investors’ appetite and the law of Supply and Demand. Properly identifying a trend can be very profitable for investors. As a general rule of thumb, the recommended strategy is to trade with the trend, as opposed to against it. Investors should be cautious of trading in the opposite
    direction of a trend.
  • Indicators are mathematical equations and formulas based on historical parameters that allow for investors to pinpoint momentum opportunities in the financial market. Thus, executing more accurate trades for either Classical Call/Put options.
    Bollinger Bands
    Are a very useful volatility indicator that shows an advanced projection of a trend. When the price of an asset become more volatile, the Bollinger bands widen and move further away from the average. During less volatile periods, the bands contract and move closer to the average. This allows for a strong visual analysis of a financial asset’s projected.
    RSI
    RSI, or Relative Strength Index, is a momentum indicator that shows you the most under-bought and most over-bought price levels of an asset. RSI can be used to help determine which direction to place your option. Because of the way large surges and drops in the price of an asset can affect the RSI, it should not be used exclusively as your only indicator, but rather as a complementary piece of any well-developed trading strategy.
    Stochastic Full
    Stochastic Full is a momentum indicator that shows you sensitive turning points of your financial asset. It works by identifying the asset’s closing price compared to its price range over a given time period. This indicator is very helpful in understanding the correction points in the market.
For more information about binary options trading strategies,
contact your personal broker or our friendly support agents on live chat today!