Recognizing Binary-options Trading

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Learn how to identify trend in trading binary options

How to recognize a trading tend?

When people first start out trading – regardless if they are trading stocks, bonds, or binary options – they want to hit the ground running. Many of your first trades will be made based on your enthusiasm for this new adventure. Enthusiasm is great, and coupled with an understanding of how trading works enthusiasm will get you very far. With that in mind, let’s get down to the nitty-gritty of how to be a successful binary options trader. The first step is to learn how to identify trend in trading. Once you’ve become adept at marking trends then you can start trading with the trend strategies we’ve outlined such as ‘The Bandit’ and ‘The Big Ben’.

What is a ‘trend’ in the financial markets?

There are many different definitions of the word trend. There are fashion trends, political trends, and market trends. In this article I’m specifically dealing with market trends. (If you are still wearing Reebok Pumps, I can’t help you, sorry.)

A market trend is simply the general direction – up or down – of the market or the price of an asset. The asset can be a stock, index, commodity, currency pair, etc. Trends can be identified with anything on the market. If you can identify a trend in binary options, you will be miles ahead of amateur traders, and will be much closer to earning real money. Marking a trend begins to get more complicated when you realize that trends can vary in length – short term, medium term, and long term.

Once you’ve marked the trend, you’ll have a better idea of the market direction and how to use trading trend indicators. Should you trade with or against the trend? Whatever direction you decide to go, the key is to have discipline to wait for the right setup and not jump the gun on a bad trade when a good one is right around the corner.

How to identify trend in trading.

Identifying a trend in binary options is an easy process. Below I’ve broken down the rules you need to follow to recognize trading trend reversals and trading trend indicators.

4 simple rules for how to recognize a trading trend

  1. Follow the series of highs and lows – If you are looking at a naked chart, a chart with no indicators, you can easily see the direction of the trend. If the charts shows an upward trend the upper end of each subsequent candle are higher and higher. Also, the lower end of each subsequent candle is higher than the candle previous. If the chart displays a downward trend, the upper and lower end of the candle will get lower and lower with each subsequent candle.As for a horizontal trend, the upper ends of each subsequent candle will hover around the same price. The same is true for the lower ends of each subsequent candle.In order to confirm a trend, you should see a least 4 pivot points, two for the upper ends and two for the lower ends.

Below are example charts that show the above 4 simple steps in action for each of the possible trends.

An example of a support line (upward trend):

An example of a resistance line (downward tend):

In the above graph you can see the resistance line in green. It has three points of contact with the breakout point indicated with the yellow arrow.

An example of a horizontal trend:

In this example of a horizontal trend, you can see that the upper and lower ends of the candles hover in the same general area. The breakout point in this graph is indicated by the yellow arrow.

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Now that you know how to identify trend in trading, practice unstill you get it right with a demo account.

Weve already established the differences between fundamental and technical analysis in the previous section. Now its time to talk in more detail about technical analysis and one of its defining characteristics – the search and identification of trends.

Trends are one of the most crucial analytical units in technical analysis. Spotting them is one of the main objectives of the process, hence their huge importance is simply undeniable. Even so, the idea is not all that difficult to explain. Trends in finances are not all that different from trends in the general sense of the word. What it really means is the overall direction where something (in this case the market) is headed. You can clearly see the trend in the following example:

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However, keep in mind that its not always as easy to spot a trend as you might be led to believe. Thats why a proper skill set and lots of training is needed before you will be competent enough to identify a trend in normal circumstances. Heres another example of a trend in a more natural environment. As you can see, you cant tell it right away.

Some charts offer you lots of information about the security, but hardly where its headed. Additional training and research are needed before one is able to spot trends by simply looking at a chart. Sometimes, additional information about the market environment as well as the characteristics of the asset are also need if you hope to identify a trend.

A More Formal Definition

You already know that spotting a trend isnt as easy as it may look at the first glance. By looking at a chart, you will notice that the numerical values of the price of an asset never go in only one direction and always have some sort of fluctuations. This means that we cant identify a trend on the sheer price movements in a direction; instead, we look the series of highs and lows the prices go through during their movement and this is how we determine a trend in the financial sense of the word.

To give you an example, an uptrend would represent higher highs and higher lows in a series of numerical progressions and will tell us that there is an overall rise in the price of the asset. If it keeps the same direction, then we have a trend. The situation with the downtrend is the polar opposite – we get lower highs and lower lows but its still easy to identify.

As you can see in the example, we have a progressive series of highs and lows and its clear that the overall price of the asset is going up. The trend keeps up as long as each low is higher than the one before. If the successive low is lower than the one that preceded it, then we are talking about trend reversal.

The types of trends we know are three. You already know about uptrend and downtrend. In the uptrend, each successive low is higher than the one before it, which means we are talking about an overall upward direction of movement, hence the name. In the downtrend, each successive high is lower than the one before it, which means that the overall direction is downward. There is a third type of trend we havent talked about yet, and that is the sideways trend (also known as horizontal trend). There has been some dispute as to the validity and existence of such trends at all.

While some traders consider them an important part of the decision making process, others think that there should be no existing definition for those trends because they are more technically a lack of trend. Unlike the uptrend and downtrend, the horizontal trend offers little to no movement (which is why some traders dont consider it a trend). Its a moment of stability. Whether you think its a trend or the lack of thereof, its important to acknowledge when the market reaches an episode of stagnation.

Identifying and using trends to a traders advantage is one of the most important aspects of trading. Even though it may sometimes be complicated, the process of spotting and properly trading based on a trend is in the heart of the successful business transaction. Technical analysis relies heavily on the analysts ability to perform those duties well and even though it may not seem like it sometimes, if you manage to identify a trend and use it, you can make a lot of money (even though there are still risks).

Binary Options Trading Systems

Binary Options Trading Systems

There are two things that make a website for binary options trading attractive and really great to a trader from the first sight – the layout of the website, itself, and the trading system it is powered with. Indeed, when it comes to profitable and easy trading, things like convenience and simplicity make it work. But how to recognize the good trading system? And how to understand the importance behind trading platform in a binary options page? These two questions and many more will be discussed right away. Stay with us and learn more about binary options trading systems now.

What Is a Trading System?

At first, it is a must for us to give you some guides as to understanding what a trading system is. Mainly, this is the engine that powers the website, but since binary options trading is such a specific activity, ordinary engine of a page will not work. That is why experts and professional traders from the sphere call the binary options pages platforms, but not ordinary websites. The system in binary options page is a specially tailored platform – it generates all the processes like making a trade, sending the deposited money directly in your account and etc.

What Are the Different Trading System Types?

In general, we know and use two types of trading systems in binary options sphere. Here are the two of them with simple and short explanations:

  • Software that is designed to be at first downloaded and installed by the trader directly on his computer. This system is in most cases underestimated by the audience, because most clients just do not want so complicated procedures for establishing an area to make binary trades. Though, generally these are also the best trading systems in binary market, so you should not pass a broker with such a convenience.
  • Web-based extension is the other popular and very easy to be used trading system. When you visit the page of the binary trading platform, you will see that no downloading or installation will be required from you. On the contrary – you will see the platform attached to your web extensions.

What Are the Best Trading Systems for Binaries?

This is a question without a direct answer, but to tell you the truth, there are three cases of finely established brokers for binaries you should on mandatory pay attention at. Check them out and choose one of them, when you look for a new binary broker:

  • MetaTrader system is a reputable and trustworthy binary options system you can use without any concern about your money or your personal data protection. The system is designed to be downloaded and installed on your computer, but once you do these things, you will see how easy and comfy MetaTrader 4 can be and can fit your binary activity.
  • WebTrader is another good option for making binary trades. It is a typical web extension for your browser and fits the needs that most of today`s trades have – no complications in binary options trading and many extras and features to take benefits of.
  • Individually customized binary options systems by the broker`s company and its IT team are also quite amazing and trustworthy suggestions for you. The good thing about them is the fact that the system fits the website and the website activity in a perfect way. In most cases, traders, who use such systems, do not even have issues or problems on the page at all.

And What About Mobile Binary Options Trading Systems?

Mobile technologies make it happen – traders can now make binary trades on the go via their personal mobile devices. Whether you prefer to use your smartphone, or you stick to the bigger size of the tablet, you will not have any difficulties in making trades via a professional mobile trading system. They can come as continuations of their main systems, but they can be also apps you can download and install directly on your mobile device. We do recommend you to use mobile trading systems, because they eliminate the limits like time and place to grab the best opportunity on the financial market and make lots of money thanks to it.

When you choose a binary options broker, considering the type of the trading system is a must.
Never fall in the trap of the attractive bonuses, but always check out the system at first and then make up your mind for the ideal choice!

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