Binary Options Trading System
There are a large number of strategies that can be found in the binary options trading system. Different strategies utilize different visual aides to portray their information such as chart graphs, stated indicators and candlesticks. Some strategies are mixed in nature and utilize a number of tools in the calculation of their results. A number of these are simple in nature and quite easy to understand, and also offer a good chance of success to the traders who choose to implement them. These strategies are suitable for individuals wishing to gain knowledge regarding the binary options trading system.
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Trend reversal is a simple strategy based on the binary options trading system, which can be utilized by new and professional traders as well. This strategy is based on the analysis of candlesticks and is utilized in intra day trading. To grasp the workings of this particular strategy, the H4 time period regarding the USDCHF currency pairing on the MetaTrader terminal will be used.
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This particular strategy relies on the factor that no movement ever portrays an infinite form. A price moving in one direction will at one point or another begin moving towards the opposite. As such, if bullish candles make up the trend for a number of days, it is advisable to wait on the appearance of a bearish candle with a big enough range to engulf the former candles that were on the chart. The appearance of such a candle depicts a reversal in the current trend, which does not occur often. A similar situation can be found with bearish movement when a declining trend suddenly gives way to a quick rise to instigate the formation of a bullish candle. Below is a graph that portrays two signals at the same time. The graph above depicts two instances of trend reversal. The first involving a bearish trend and the second a bullish one. In such a case, an individual is able to make a profit from both instances.
This strategy regarding the binary options trading system originates from Japan. It has grown in popularity over the years and is used by traders around the world. The signal retrieved from this particular strategy boasts an accuracy nearing the 70% mark. To take part in trading via this binary options trading system, one will need to download the MetaTrader 4 (How to use the MetaTrader 4) trading terminal on their computer. The indicators and templates of the trading system will also need to be installed. Once all the necessities have been installed and used accordingly, the potential assets will be displayed in a graphical format as the one below. The one major issue of this particular indicator is that there are a number of circumstances where an entry into transactions is not permitted. One will need to take note of the candle from which a signal has been discovered and is closed. One should purchase a "put" option upon the opening of a new candle below the cloud. Should a candle open above the cloud, one would do well to purchase a "call" option. Longer trades can be utilized via the setting of a daily timeframe that is available on a system template on the chart.
Automated Trading With Binary Options Robots
Though part of the binary options trading system, the Doji candlestick does not represent a reversal on its own, and gives out a sense of balance between the buyers and the sellers involved. The exact party with a larger influence on the market remains unclear however. The candle is made up of a long shadow and smaller body. It portrays attempts by the price to move either upwards or downwards before plateauing back to the open level.
A Doji candle displaying a rising movement on the chart will be shown as follows:
This particular constituent of the binary options trading system can portray a reversal in trends when a rather strong upward trend is suddenly replaced by a bearish candle. The candle's body in such a case would be made of long shadows incorporated in this particular binary options trading system. This depicts the sellers' inability to further affect the market, the candle that follows will indicate the next movement to be expected. If the candle that follows happens to be bearish in nature, no action should be taken, but should it be bullish, this would be an opportune time for a trader to purchase "call" options. Trend reversals allows one to make more accurate predictions and as such are the best times to conduct one's trading. Thus if the following candle pass the levels reached by the previous one, trading options at that moment could prove to be quite lucrative, and is definitely a move that could lead to lucrative results.