Office №ane: THEORY
And now allow’s move on to the theory. Before yous understand what trading with the trend, information technology is necessary to clearly define what is, in fact, information technology is the tendency. Under the trend in trading binary options (and not just in that location) understand the constant movement of the asset in one management (upward or down). Depending on the direction there are three kinds of trends:
upward, downward and lateral. Consider all iii examples on real screenshots from my experience with binary options trades.
The up trend
Note: the asset is steadily growing. No, of course, on the chart downs at that place, and they are inevitable, but look: each successive rise is at a higher point than the previous one. And, most importantly, each recession also: lowering the level of the previous recession occurs. Consequently, we are dealing with a stable upward trend. Schedule of rates in this case may reach the level of support or even go across it, creating a new loftier.
How to put in this state of affairs? Of form, to increase. With this stable trend, the trend will remain for the ascent, then that you lot can safely open the transaction.
“Grab” the trends are best using Living Graphics. On it, you can configure the indicator Linear Regression, and thanks to this indicator and you’ll see the trend, and the trend for the interest you have avails. Of form, received at the disposal of such information, you volition exist able to brand predictions on the binary options with much greater accurateness, leading to increased profits.
On this chart, yous tin see a clear and steady decline in the asset value. With regard to the ups and downs, everything is similar upward trend, only in opposite. Every drop goes to a lower level than the previous one. Each rise, on the contrary, corresponds less and less value. This trend (shown below) can also be considered a stable and predict that in the near future of the asset volition reject.
How to put in such a case? Naturally, for a fall.
Open option – and become rewarded for care!
Working on a downtrend, information technology is convenient to use the Linear Regression indicator. As is the case with a rising trend, this indicator adds clarity and allows to predict the outcomes of transactions in the binary optsionahs great accuracy – of course, this has a positive touch on on your income from trading.
Side trend (flat)
The direction of the trend is non a diagonal and a horizontal line. This means that the trend in one direction or another in the asset value is not available. What to practise with this trend? Nothing. Amend not to open the options, considering the probability of a right prediction is very low and the procedure is comparable to a coin toss. Accordingly, trading binary options with the tendency should exist in an up or downtrend, but non in the side. Side trend and many analysts do not consider “real” trend, and I am inclined to hold with them.
You can make transactions and against the tendency, but it is not recommended for beginners to practice this. Yes, many traders, for instance, merchandise on the increase to the level of support and a fall – after the schedule concerns the line. This strategy can be considered justified, every bit it can help to make a specially skillful deal, but the risk is too great to recommend inexperienced traders to operate in this fashion.
Formulate the main advantages of trading binary options with the tendency:
- It is only. A trader can cope with the visual definition of a trend with minimal experience. For many other strategies, serious theoretical and practical training is needed – here it is merely necessary to be able to analyze graphs a little. And the utilise of indicators and at all profoundly facilitates the trader this task. He does not even have to know what the fundamentals are, and non what to watch for them. Of course, in order to achieve really serious success, you need to know as much as possible, and you will non be able to confine yourself to one type of trade. But to use this strategy as a grooming tool and an assistant in the outset steps in the marketplace of binary options is quite possible: moreover, it is for this purpose that is all-time suited.
- Information technology’s comfortable. In the previous section I take put it a little inaccurate: no “indicators” and “indicator”. You volition need merely one indicator: Linear Regression. So get lost in the charts, values, lines but unreal! More often than not, binary options (different, for example, on Forex) allow to dispense a pocket-sized amount of graphs and indicators. The attractiveness of transactions on options for beginners is largely due to just that.
- It tin exist combined with other strategies. It is possible to simultaneously trade on the news, use bezyndikatorny analysis and so on. In any case, a proven and robust trade with the trend you lot will not neglect. In disputable situations refer to it but signals, and information technology volition practice you practiced. Experienced traders usually utilize this strategy as an auxiliary tool, with which you can make the right decision in a difficult situation.
The fact that this strategy is simple-minded, some experienced traders even written into disadvantages. You tin find tips to utilize this trade only during preparation, when working with a demo business relationship, and to work with real coin to develop more sophisticated and more robust strategy. I, however, tin argue with such advisors: this strategy is not for me a key, but I quite frequently utilise it and achieve success. The principal thing – to await for the pronounced tendency and time to make a deal, while the trend will operate. And then the strategy will bring success.
How the trend strategy look in practise?
Permit’s encounter. And then, I’chiliad getting started, with my binary options broker helping me. I check a variety of assets from those with which I constantly work. At showtime I don’t run into annihilation worthy of attention, but then I see a pronounced trend! Hither is a nautical chart showing the value of the euro against the Canadian dollar.
It looks tempting, simply yous need to check the trend by analyzing objective data. As I wrote above, it is best to do it with the help of Live schedule binary options. Through linear regression indicator I can see that the tendency is actually falling, and candles steadily dropped.
Aye, yous tin safely open the deal and hope for a practiced profit. What I’one thousand doing, opening the binary pick for a fall in the near fourth dimension, the broker said. By the way, this strategy works with whatsoever timeframe but I prefer to stand long enough decease, preferably not less than half an hour, but better 1 hours. I put on 100 dollars …
… And go 77 dollars of internet profit! That is 77 pct: impressive, is not it? And this is not the limit!
As yous can run across, torgovlyamozhet be very assisting – if you practice not yawn and track of import trends in time. Trading with the tendency, beyond its simplicity, is very addicted of my clients, particularly those who are but commencement to larn binary options. Subsequently, they commonly move on to more complex instruments or invent your ain, just many people exercise not forget what strategy was the first of their success, and continue to work with it.
I remind you that if you desire to acquire about other strategies that I think really works, then this will assistance you my stuff “Binary Options Trading Strategies”. Pay attention to another text: “Trading systems for binary options (full list)”. This data is collected on a single folio, a must for those who are just starting their way in the trading and wants equally quickly every bit possible to become up to speed.
Practice y’all desire a assisting strategy from Anna?