THE BINARY OPTIONS STRATEGIES
When trade with binary options, as with other financial instruments, we can use two types of market analysis or technical analysis and fundamental analysis. It is important to learn how to use them. Both analyzes are based on your education trader. These two methods can be used individually or jointly rather to determine the future course of market trends. Here we will focus more specifically on fundamental analysis and its use in the binary options trading.
ANALYSE FUNDAMENTAL
What is fundamental analysis?
is called “fundamental analysis” a market analysis based on economic news, and financial policies and their impact on prices. The principle here is to analyze all relevant information in order to identify the most probable direction of the course. Of course, the information used in this analysis are based on the assets studied. Thus, Forex traders will specifically releases by major central banks and traders www.sbinaryoptions.com on the indices, economic Communications countries, areas or industries concerned. For simplicity, most of this information is relayed by economic calendars that tell you the date and time of each event and consensus on the results of some numerical indicators.
How to use fundamental analysis in binary options trading?
Fundamental analysis is particularly suited to the use of binary options because it determines specific times when prices are expected to grow strongly in one direction or in the other. This is in fact to use this information to predict the behavior of other traders in terms of indicators. Of course, it is for you to judge the relevance of information according to general market conditions and the overall trend. Used properly, however, fundamental analysis is one of the most effective methods to make money with binary options. To maximize your chances of success this fundamental analysis, it is advisable to refer to historical data by looking for similar situations that occurred in the past. This will let you know if your feeling is good or not and if traders are likely to react as you had hoped.
TECHNICAL ANALYSIS
What is technical analysis? Called “technical analysis” the underlying price of an asset analysis that aims to predict the future trend of the market. It is by studying the past and current price of an asset or its course we can deduce future movements. However, there are several models of technical analysis to determine future courses. Most of these models are used as part of a more traditional trading to provide for capital gains or losses on a given asset, but one of them is particularly suitable for binary options. This is the trend analysis. These trend analyzes are to study in depth the historical prices to determine whether or not the asset following a particular trend in the short, medium or long term. To achieve this, use is generally moving historical averages.
How to use technical analysis in binary options trading?
The most important thing in trading is to ensure that the odds are on his side and reduce the risk of losses. Several criteria are taken into account with technical analysis, including price volatility, as the financial market is a sector that is in constant movement. To understand the usefulness of technical analysis in binary options trading, remember that these options require only predict the direction that will take the price of an asset over time. Now this direction corresponds to a trend that may be bullish or bearish.
Ultimately, this technical analysis allows us well to highlight trends is therefore a valuable ally in the context of speculation with binary options. However, the mere technical analysis is often dangerous if it is not used, taking into account other factors more fundamental analysis, but also other psychological factors. Moreover, technical analysis requires a strong knowledge of graphic indicators and is rather reserved for experienced traders.
Binary Options For Dummies 