Keltner Channel Strategy

The Keltner Channel strategy is nothing new. However, many Forex trading beginners have been using it recently as an alternative to the more popular Barometer strategy. The Keltner Channel strategy uses three moving averages to indicate the direction of the market. When combined with the Channel indicator, this is said to provide a sign of: 

  • Support;
  • Resistance for a particular currency.
keltner channel strategy

Keltner channel description

The Keltner Channel strategy is very easy to understand. For example, when looking at a long term chart of the EUR/USD pair, you would see a series of vertical bars. On this same page you would also see the same series of bars with different color-coded levels. 

This means that these levels represent the three different moving averages on which the investors make their decisions about the currencies to trade. As the levels move, they signal to investors whether or not the EUR/USD is expected to: 

  • Go up; 
  • Stay the same;
  • Fall down in value. 

When traders decide to enter or exit the forex market, they use the signals given by the channels.

Technical analysis technique

The keltner channel strategy works on the same basis as the Bollinger Bands used in Forex trading. In fact, both are based on the same technical analysis technique where an upward or downward movement is detected by the channel. However, the channel takes on a more complex appearance when it is combined with the Bollinger Bands. These combine the channel with a combination of indicators like the: 

  • Stochastics; 
  • Moving Average Convergence/Divergence. 

These combine to give a signal to investors when to buy or sell a particular currency.

Why is it so popular?

There are many people who use the keltner channel strategy to trade the forex market. This is because the strategy has been proven to be quite successful. It has been developed in conjunction with the Bollinger Bands strategy that was developed to help currency trading dealers detect currency price trends. Both the system short positions and long positions are combined with the use of varying levels of Bollinger bands to signal when to buy or sell.

When the trend continues upward, this means that the currency prices will continue to rise. At this point, the trader will want to buy, so he will add currency to his short positions. When the price action breaks down, this means that the trader will want to sell off the currency he is holding in his long positions. Thus, when the trend continues upward with the breaking of the resistance, this means that the prices will continue to move upwards.

Middle line

This is basically how the strategy works. When the middle line is broken, the platform will draw a line between the top and the bottom of the previous day’s high and low. The middle line is the upper limit of: 

  • Support; 
  • Resistance. 

The key to this trading strategy is the fact that it is based on a simple moving average, or SMA, which is determined by moving averages of closing prices over a period of time.

SMA

The SMA is considered as one of the more reliable indicators when determining where a currency will go. There are two types of this trading strategy: 

  • Top line;
  • Bottom line. 

The former uses the upper and lower channels as resistance levels while the latter uses the envelope based technical indicators. These indicators are used in place of the traditional technical analysis methodologies that are often seen in forex trading. Some of these techniques include: 

  • Support and resistance levels; 
  • Oscillators; 
  • Fibonacci levels; 
  • Other formations.

MT4 importance

The MT4 indicator uses the moving average of the price in a channel that spans the range between two points. Traders use this channel as a means to support their positions while eliminating those that may be risky. The best thing about using this particular channel is that it can be updated rapidly and easily using a software program. While it has been claimed that this strategy provides positive results, it has also been said that some of its indicators are not very accurate. It is important for traders to understand that accuracy cannot be achieved with accuracy.

How To Predict Binary Options Prices

how to predict binary options

If you are interested in binary options trading then you should definitely read this article because it will teach you how to predict binary options with the use of binary options indicators and signals. Option Japonica Trading System was developed by Binary Options Research LLC, who is one of the leading firms in the binary options industry. 

Japonica system description

This system is utilized by more than ninety-five percent of all traders that trade on the day trading binary options market. This option uses sophisticated technical analysis to give you reliable predictions about how much your stock will: 

  • Go up; 
  • Go down during the time period it covers and how to make money if you choose the proper option. 

This is because experts claim that this trading system is able to make use of “psychological data” gathered from past data and makes “educated guesses” about how these factors affect the value and price of a certain security or commodity.

Its indicators

The Japonica system uses a number of different psychological indicators that act as “signals” to signal to traders how to predict binary options trading correctly. These signals are made out of “reversals”, which can act as “reversals” to the previous trend that a security has followed in the past. There are two categories of reversals, which include: 

  • “Long-term reversals”; 
  • “Short-term reversals”.

 Long-term reversals are thought to indicate strong market trends, while short-term reversals are believed to indicate weak market trends.

FSP

One of the best ways to predict binary options correctly and make money is through using the Japonica indicator, FSP. The FSP uses “dead bands” as its signal function, which basically means that it does not function independently. Instead, it monitors and acts independently of how the market moves. This is unlike traditional signal functions, which rely on the strength of one or more current trends to signal the end of a trending period. With this method, it ensures that it can act independently, even during the latter part of a binary option trading hours.

“Volume triggers”

Another way to predict binary options correctly and make money is through “volume triggers”. Volume triggers are utilized by most binary options systems to signal to traders that there is either a high or low chance that a given asset will make a winning trade within a certain trading hour. However, many programs also have volume alerts, which tell brokers to close all positions when a certain level is reached. This volume triggers can be set for specific asset classes, but generally have parameters that allow them to be set for any time frame.

Right brokers

Traders who want to use binary options trading to make a lot of money need to find a broker who is willing to offer them a wide variety of asset classes and has an ability to customize their service. This allows the user to maximize how much they make from binary options trading. Some brokers have an exclusive line of options for specific asset classes, while others have a wider offering of options tailored for a variety of markets. Brokers that can offer an incredible range of investment options will tend to be highly profitable and successful.

Predictions by prices

One final way to predict binary options prices is to do research on how the various asset classes fluctuate in value. For example, it is important to know the prices of: 

  • Oil; 
  • Gold;
  • Other commodities. 

Also you should know how they react to a variety of events and how investors can capitalize on these fluctuations. To predict how an asset will perform is to take advantage of what the markets have to offer and make good use of the information available. Again, the more you can learn about how to predict binary option’s price movements, the better off you will be.

How you can improve yourself in predictions

In order to predict the price movement of binary options with such ease, it is extremely important that you have mastered the art of prediction yourself. There is an excellent chance that you will make a huge mistake at first, especially if you are relying on “tips” from people you have never met. If you want to know how to predict binary options prices correctly, then you must have a very high level of skill in the forex markets or your trading skills. 

Forex currency trading is a widely popular venue for investors, which is evident by how many software programs are being released each month. Because the nature of the binary options trade means that the market will change on very short notice, even the most skillful trader can miss out on a golden opportunity.

Different strategies

There are also a number of different strategies that you can use to predict binary prices. Some traders like to narrow their focus down to only two or three time frames, and trade solely on those time frames. Other traders prefer to trade across a variety of time frames, but also trade on a variety of asset classes. Still other traders simply trade with no structure at all, and try to predict the best times to buy and sell at any given moment. There is no right or wrong way to go about predicting the best times to trade, so it is really up to you. As long as you are taking the time to learn how to predict binary options prices properly, and develop a plan for trading on those times when the market has moved in your favor, you should do well.

Top Apps For Binary Options Mobile Platforms Introduction

Binary trading on the internet has taken binary options trading apps by storm. This is because traders all over the world have realized the convenience and ease of using an app for trading instead of having to use a broker or call a broker. There are many binary trading apps available, but which one is the best?

binary trading app

Profit of these apps

Binary trading apps provide a similar experience as desktop trading except with mobile apps you get access to live markets twenty-four hours a day seven days a week. There’s nothing different with it other than just two main points: 

  • You have to trade with binary options via a mobile phone;
  • Binary mobile apps have to get payment to use them. 

These apps do cost money, but some of the most popular and profitable binary trading robots used on the market today are offered for free with a paid subscription.

Interface and design

The first point to consider with any binary options app is the trading interface. Most professional traders will look at anything that doesn’t have a great user interface as a big negative. If the app has a confusing trading interface, potential traders may not spend nearly as much time trying to figure out how to use the system as they would if it had a great user interface. If you want to be able to easily learn how to use a trading platform without spending hours trying to figure it out, try FxPro.

Reviews from other users

It is also important to read what other users have to say about a particular binary trading app. Binary trading apps with stellar user interfaces are always the best to read and learn from. One of the best ways to learn about any trading app is to look at some trading app reviews. Many traders write binary trading app reviews in which they talk about their experiences using the particular apps and the overall experience they have. For example, IQ option app, which was developed by the best programmers, received a lot of positive reviews, so it works perfectly with all modern phones or tablets (iOS or Android).

Types of apps

One thing to consider when reading any trading app review is whether the reviews are from paid to free or vice versa. Paid apps offer traders a number of features that free apps don’t offer. Paid brokers often offer better commission rates than free brokers, for example. Another advantage of a paid broker is that you can get more assistance from them. They often provide support for their platform as well as help you set up your demo trading account. It is easy to see why a paid options app could appeal to more traders than a free one.

Most good binary trading programs have: 

  • Introduction video; 
  • FAQ section covering a variety of topics and frequently asked questions; 
  • Demo account.

Demo account

They should also have a separate trading demo account option where a trader can get real money to play around with before risking real money. It is always a good idea to read any program’s terms and conditions very carefully. Many of the new traders that start out with this app will decide to stick with it because of all the technical analysis that goes into the process.

Best programs

The best binary options trader program, like IG, will have a practice account that a trader can test out before risking their hard-earned capital. All of the other information in a good program should be easy to understand and include a demo or practice account that lets you learn how to use the platform without risking actual funds. 

Many of the top programs out there also have a number of tools that traders can use in conjunction with the platform. These tools may include: 

  • Indicators; 
  • Scripts;
  • Other items that can greatly improve the efficiency of your trades. 

These extra features make for a much more efficient binary trading platform and should be strongly considered by a binary options trader looking to improve their profitability.

Verdict

A binary options trading platform can take advantage of many of these additional capabilities, but the best platforms take advantage of all of them in order to maximize their profits and minimize their risk of losses. You may want to check out the top apps for android, as they are among the most popular programs for both beginners and pros. The good news is that most of the top programs for binary options mobile platform’s introduction are free or cost very little, so there is no reason not to take advantage of them!

5 Minute Binary Options Strategy

Five Minute Binary Options Strategy is the most successful minute binary option’s strategy, which is based on a trading plan that has been tried and tested by many successful traders. You can follow this same strategy by taking the information provided here and modifying it to fit your own needs. First you should always do your research and find out as much as possible on the market about any given option before you ever make an investment. 

This way you will be able to determine the likely direction the option is going to take and accordingly place your trade. Also you should understand what is happening in the financial markets at the time you are making your investment so that you can make decisions about your own trading strategy. There are many different indicators out there to choose from but here are the ones that we find the most useful for our own strategies.

5 minute binary options strategy

Understanding of Indicator

This is the easiest of the 5 minute binary options strategy indicators to understand and implement. All you have to do with this indicator is to set the threshold price above which you will only invest if the asset becomes within a certain range. When the asset reaches the threshold price you will then receive a “call” signal. The best thing about this particular indicator is that it is very easy to understand and implement. All you have to do is: 

  • Set the threshold price; 
  • Define what range you are looking at the range over and above;
  • If the asset reaches the range you defined then you will receive a “put” signal.

Moving averages and their usage

There is a 5 minute binary options strategy using moving averages. Moving averages are normally used to determine the general direction of a particular asset over time. They work by showing the price action over a period of time that is equal to the average closing price of the currency pairs being examined. What makes using the moving averages strategy so useful is the ease with which you can: 

  • Set up;
  • Use it in your trading account. 

There are a number of different types of moving averages to use and all you have to do is to define which currency pairs are the ones you wish to analyze.

Define the range of indicator

The best part about this 5 minute binary options strategy indicator is that it is very easy to understand and very profitable when implemented. All you have to do is to define the range where the price movement is expected to be, then set the time frame through which the data is going to be collected. If you want to see the complete range of the price movement, then you can use the moving average indicator range bounds feature. Once the range is defined, you can go ahead and set the threshold price within the range to determine whether or not you will enter the trading account and if you are going to enter, what exit strategy you are going to follow.

Its advantages

One of the best advantages of the 5 minute binary option’s strategy is that you can use this indicator if you are in a swing trade and you need to accurately predict the direction of the prices. If the prices move in an upward direction, you must buy. Conversely, if the prices move downward, you should sell. This is the basic concept of the technical analysis indicator and this is something that you can easily apply to the foreign exchange market. You may need to make a few trades before you get the hang of using this indicator correctly, but as you keep practicing, you will start to understand how the prices react to the prevailing market conditions.

Open and the closing price

If you intend to use the 5 minute binary options strategy to trade shares, the best way to predict the direction of the share price movement is to determine the open and the closing price of the underlying asset. By knowing the open and the closing price of the asset, you will be able to make the necessary calculations to determine the exact amount of premium you will need to pay on any particular trade. Once you have this information, you will be in a better position to determine whether the asset’s price moves in your favor or against you.

Filling the form

The 5 minute binary options trading strategy has been made easy by the online brokers. All you need to do is: 

  • Log on to the broker’s website;
  • Fill up the form. 

Once this form has been filled up, you will be sent an online quote. You can compare the quotes offered by different brokers and select the one which suits your requirements the most. Once you are through with the quote, all that remains is for you to click the button of the registration and place the order.

Expiration date

Another important thing that you need to keep in mind is the expiration date. Make sure you know the expiration dates of the particular option that you are going to trade. This is because the longer the expiration date, the more profits you gain from the options. To have a proper knowledge of the expiration times, you can log on to the website of the broker and get the latest updates. The 5 minute binary option’s strategy is something that works only if you have the complete knowledge of the options, the market and the expiry dates.

A Trader’s Guide to Using Fractals in Forex Trading

A Traders Guide to Using Fractals

Trading with Fractals is one of the hottest topics on the Forex market right now. Why are they so hot? Because traders who understand and apply these techniques are seeing their profits skyrocket. So if you’re interested in learning how to use fractals in trading, we have some answers for you!

Dangerous indicator

Trading with fractals is all about setting your stop loss and taking the time to watch the indicator. It is imperative that you learn to look at the indicator as an enemy instead of an ally. If you see an indicator that looks like a triangle, make sure you get rid of it immediately. If you see a triangle that resembles a bell, do not follow the bell, wait for the price to drop before entering into a trade.

Stop loss with Fractals

This may sound crazy, but it is an essential part of trading with Fractals. You should always keep the stop loss in mind and try to take a position in the opposite direction of the indicator that you are following. Now this may sound counter-intuitive, but in the cases of many expert traders it has worked very well. If the price takes an extreme turn downward, you can quickly move your stop loss further out to the right and try to catch the break. Once you enter into a profitable trade, you can reverse your position and try to get out before the price bounces back upward.

Technical indicators with charts

The other important thing to remember when trading with Fractals is to be observant of your own chart. It is easy to become blinded by price movement because you’re looking at: 

  • Simple bar; 
  • Candlestick chart. 

In reality, most technical indicators only tell you how far the price will move in either an up or down direction. However, a good indicator will also provide you with charts that break down the movement of the indicator itself. These charts show you exactly where the breakouts are taking place so that you can enter when the price is heading in the same direction as your indicator.

Important patterns

As stated earlier, most technical indicators can break down the movement of the indicator using boxes and arrows. Your stop loss and position target will likely be based on these patterns. One common pattern is a sharp rise in the price followed by a rapid drop back down. To profit from this, you must take a quick sell and quickly enter your exit position. Since it’s likely the price will continue to move in the exact opposite direction of your signal, if you don’t get out before the reversal, you’ll lose money.

How to use Fractal analysis

This may seem confusing, but Fractals are simple enough to understand once you learn how to use them correctly. The most common way to use a Fractal analysis is on a daily chart of the price chart. Simply look at the key bar, and notice the points that form a perfect triangle, or Fibonacci ratios. These points, along with the peak and the bottom are called points of support and resistance, respectively. 

Since a Fibonacci ratio is formed by the number of times the price closed out (hope), this indicates strength within the market. Since every successful trading strategy takes into consideration at least one of these points, it’s easy to see how an indicator like this can predict trading opportunities.

Best strategy for beginners

For beginners, it’s best to start off by practicing with a simple Forex trading strategy like: 

  • The triangle method;
  • Basic breakout strategy. 

Once you understand how these patterns work and can apply them to your daily chart, then you can take it a step further and start exploring the more advanced techniques. But for now, try to stick to the basics as mentioned above, and keep looking for the breakouts at the end of the day. You can begin applying stop losses and other methods of analysis when the price reaches a new high or low.

Relative strength theory

Another useful tool in your arsenal should be an indicator. Indicators can provide you with important information when it comes to triggering stop losses and other necessary actions. There are many types of indicator and they include: 

  • Moving average convergence/Divergence; 
  • MACD; 
  • Simple Moving Average Convergence Divergence; 
  • RSI indicator. 

They are based on relative strength theory. Regardless of which type of indicator you decide to use, it’s always important to start with a solid foundation of technical analysis, stop losses, and a reliable stop loss in place before you even think about using any other form of trading strategy.

What Is a Breakaway Gap

What Is a Breakaway Gap

Different patterns

If you are new to the stock market trading and are struggling with your trades, then you definitely need to learn more about breakaway patterns. These patterns are very useful for traders as they provide a trader a very important advantage in stock trading. You will learn why these patterns are so powerful in breaking even and closing a profit for you. As well as these patterns, you will discover the importance of breakaway patterns in terms of trading systems. To find out exactly what a breakaway pattern is, and how it can help you trade stocks, then read on.

Index Charts

A breakaway gap refers to a strong price move through resistance or support, quickly. These price moves are often seen early in a trend, as they occur at resistance levels. The price often breaks away from the resistance or support within a small gap, rather than an intraday breakout. This breakaway gap has been seen in many different types of charts, such as the Stochastic, Relative Strength Index, exponential moving averages and the Renko chart. However, breakaway patterns can also be seen in the time series chart of the price. These gaps are most often seen in the: 

  • Stochastic Strength Index charts;
  • Relative Strength Index charts. 

But can be found in the other charts as well.

Trade

To answer the question “What is a breakaway gap?” in stocks, the trend should be identified. If the trend is going to continue in an upward direction, you should see breakaways in the price action. If the trend is going down, you may also see breakaways in the price action. You need to determine the direction of the trend and set your stop loss accordingly.

Moving averages

Another common indicator used to identify what is a breakaway gap. The exponential moving averages. These moving averages help traders know that a certain pattern is about to occur. The trader sets up his or her stop-loss accordingly. If this type of signal is present on the swing charts, then it may indicate that a big breakaway gap will take place later in the trading day.

Technical analysis

A breakaway gap can also be determined using simple technical analysis. The period following a bull market is typically very strong, while the time-frame following a bear market is usually weak. If you notice that the gaps are getting wider in the time-frame that is opposite of the bullish period, then this is your cue that a breakaway gap may occur in the near future. The size of the gaps and their duration can be determined by simply studying the rise and fall of the stock prices over time. This technical analysis is the easiest to do, and it gives you a good chance to decide what is a breakaway gap for any particular pattern.

Predictions

What is a breakaway gap? It is not so much a particular indicator, but rather a general rule of thumb, which is necessary when analyzing any trading chart. There are times when a small breakaway pattern can appear, and at other times when it can disappear just as mysteriously as it appeared. This makes predicting breakouts a difficult task, because no one can tell you what will occur in the next few minutes or hours.

Verdict

Most technical charts have breakouts close to the previous close, which makes interpreting their meaning more difficult. One common interpretation is that a consolidation occurs. A consolidation occurs when the volume of a security’s buyers becomes lower than its sellers. This is an example of how a gap up or break up may indicate a consolidation, because it is when the volume of buyers and sellers becomes equal. In a consolidation, the gap between two trends can overlap, creating a volume spike, or a formation of breakouts, and this volume spike may result in a reversal from the former trend to the latter.

How to Use the Moving Average Indicator?

Moving Average Indicator

The Moving Average Indicator (MAI) is one of the most commonly used statistical indicators to help traders determine the direction and momentum of the market. Many traders swear by the use of moving averages as an aid to profitable trading. So what does moving averages mean in stocks?

Basically, the meaning

Trading with moving averages basically means that you trade with the moving averages as part of your swing trades. For instance: 

  • If you are invested in a trade and the MA indicator is moving up, you buy before the moving average line is broken. 
  • If, on the other hand, the moving averages are breaking down, you sell.

How it is used

So now that we know what a MA means in terms of usage, let’s discuss how they are used. The MA indicator itself can be used as a technical indicator to identify a trend. This is usually done when analyzing a simple moving average, such as: 

  • SMA;
  • MACD. 

Simply put, the moving average tells you when the current stock price is higher than the average that is being charted. Conversely, when the stock price is lower than the moving average line, you sell. Trading with moving averages is similar to trading with price action, but instead of trading with the overall value of the security, you focus on the short-term trend.

Best ways to use MA indicator

There is some controversy, however, as to how well this technique works. Some experts claim that the best way to use moving averages is in conjunction with another trading technique known as momentum trading. What do we mean by this? 

In essence, you would want to trade on trends where the volatility is high, as opposed to low. Think about baseball and the difference between a two-year career from average to great. Volatility can help you make better trading decisions but using moving averages together with momentum trading can give you an advantage that can lead to profitable trades.

What you can find with indicator

If you are just learning to trade Forex, you should first take a look at using the moving averages indicator. You can find numerous: 

  • Articles; 
  • Reviews; 
  • Charts; 
  • Videos that will show you how to use it effectively. 

One thing that many people fail to realize, though, is that you can use moving averages together with other indicators, which can really increase your effectiveness. For example, if you want to know when to enter a long position, you can combine it with the moving average indicator.

Technical usage

If you are a technical trader, you may be wondering how you can use the moving average indicator to your benefit. In fact, it is very easy to incorporate it into your trading system. If you decide to use it to identify a certain stock that you want to get in on, you simply set the moving average value to have it trigger when the value of that stock is rising. Then, when the value of that stock is falling, you can sell your shares and close out your position.

Rise and fall of stock

If you decide to use the moving average indicator to predict what direction a stock will move in, you can set it to trigger when the stock is rising or falling. Of course, you should be sure to always have the market data before you make any predictions, as well. Some people claim that using the moving averages to their advantage is just too good to pass up. They say that they can predict where the price of a stock will go practically an unlimited number of times, especially if they have the right kind of software program. If you don’t feel confident about investing your money in the stock market, though, you should stick with traditional methods instead.

Verdict

You can get moving averages from anywhere online. There are some great free moving average indicator services that you can use, as well. One thing you should remember, though, is that they won’t be able to provide you with any kind of charting functionality. If you want to know how to use the moving average indicator to make reliable predictions about what direction a stock is moving, you’ll probably need to invest in a piece of software that provides the functionality that you want.

How To Use A Binary Option Demo Account

Binary option demo account

A binary option demo account can be an excellent way for the average investor to get a feel for this volatile market. However, many people who are new to trading options may not have the extra cash needed to invest in a binary option brokerage firm. For them, a free binary option demo account can offer the perfect opportunity. 

These demo accounts are offered by a number of different online binary option brokers with free demo account trading accounts, such as IQ Option. Most of these brokers will let you use virtual money through their brokerage platform. You can use this virtual currency to place a variety of trades, just like you would if you had money on deposit in a traditional binary option trading account.

What can be offered

When you open a demo account, you will need to deposit a specific amount of money, commonly around $500 or so. Virtual money can typically be withdrawn from your account once your broker has processed your deposit, usually within one hour. This is a fast process, and you should not experience any problems as long as your broker’s website is secure. Once your virtual account is open, you can use it to practice your binary option trading strategies without investing any real money. Most brokers will provide you with free trading strategies through their websites, which will help you improve your chances of making successful trades.

What will the brokers say?

Many brokers will offer: 

  • Variety of demo-account trading strategies; 
  • Free tips; 
  • Free advices. 

This information can often be very helpful when a trader first begins to learn more about binary option trading strategies. Brokers are not obligated to provide you with any advice, so it is always wise to check their credentials before making any decisions. Some of the strategies that can be found on the demo account may seem risky at first, but they can often be used in conjunction with other strategies to produce profitable trades.

Biggest plus of such accounts

Most brokers will not make you open a binary option demo account without fee. These types of demo accounts are offered by many different firms, like eToro, and they do allow the user to trade using fake money. This can be very useful to new traders who may not have much to invest yet, or to experienced traders who may have a smaller bankroll to risk. A fake account can also be helpful to traders who wish to try out different trading strategies without putting any money down, or who simply wish to see what their trades look like before risking any real money.

Why these accounts are free

There are a variety of reasons why a Binary option demo account may be offered free of charge. Some firms offer these for free:

  • As part of a promotion;
  • As a bonus for using them. 

They may want to: 

  • Attract new customers; 
  • Gather information about their services and benefits for potential clients. 

It could be that a firm needs testing information before launching full services, or it may be a way for them to thank previous clients for their time and support. In some cases, brokers simply need to increase customer service scores in order to maintain a positive reputation among traders, thus making the trial offer free of charge.

Various platforms

There are a number of ways to get started, using any of the various platforms offered by the brokers. A trader will simply need to set up an account with the brokerage firm, make a small initial deposit, set the expiration date, and select the options they wish to trade. Many brokers, such as Alpari, will let the trader customize the platform if they so choose, including the amount of initial capital they have to enter the market with, which limits the risks of losing the account.

Maximum loss level

Most demo accounts will allow the user to place a maximum loss level. The demo account may also require the user to complete some form of investment tutorial. After the tutorial is complete, the trader can then place real money on the platform and see how much they can make or lose. While this may not be as risky as actually investing money on the demo account, it is still a way to learn the ins and outs of trading.

Verdict

Many experienced traders use these services as a way to learn about new markets without actually investing real money. This is especially helpful for those who are just starting to learn about binary options and the strategies used by successful traders. A binary option demo account offers traders the opportunity to practice and test their strategies in a virtual setting without putting their money at risk. It is a great way to ensure that they are implementing good trading techniques while developing a foundation that they can rely on as they become more serious about trading.

Binary Option Price Action Strategy – Which Strategy Will Work For You?

Binary Option Price Action Strategy

One of the most common strategies for binary options trading is called the binary option price action strategy. This is where the trader decides what to do: 

  • Before the trade; 
  • During the trade;
  • After the trade. 

You might think that this sounds easy. It is but if you do not know what you are doing, then it is very difficult. The strategy has been used by professional traders for years. Many new traders jump on the binary options bandwagon without first understanding how to do it.

Options price action strategy

The binary option price action strategy revolves around the binary option’s terms ‘closing price’ and ‘closing time’. This is where the trader determines what they will do before, during and after the trade. This is known as the binary option strategy. The most common way this is done is to determine how much money the investor will make on a certain level before the expiration date. There is also an off-set strategy that is used in binary options.

Main components of strategy

The two major components of the binary option price action strategy include the: 

  • ‘Divergence Factor’;
  • ‘Rational Edge’. 

The Divergence Factor analyzes the difference between the opening and closing prices. This is a positive value. It means that there is considerable price movement in the market. The Rational Edge is the opposite, where the difference between the high and low price is negative.

Many beginners go for the Divergence factor analysis. Unfortunately this is not a very good indicator of how the price will behave. When the price moves in a predictable pattern, you can easily predict its direction, assuming that the price will always go up or down. But when the price changes with no apparent reason, the binary option price action strategy games become difficult.

Change course

The best way to find out whether a particular price will change direction is by looking at the various strategies that use the Divergence Factor and the Rational Edge. If the price action binary options strategy games do not use these two crucial indicators in their strategies, they are useless. You must be able to determine how good your strategy is. You should check whether the strategies you are using can help you make a good profit or not.

Some of the best binary option price action strategy games are those that are based on the divergence and rational edge indicators. This is because these indicators are the easiest to use. All you need to do is put a stop-loss figure on the trading strategy and then you can be sure that you can get the best out of the strategy. You can find many good price action binary options trading strategies online. You just need to spend some time searching for them.

Wrong and right investments

If you have decided to go for the price action strategy games, you must keep in mind that your trading must be based on the binary option price. This means that you must only deal with the price of the particular option that you are dealing with. Do not think about other underlying options and their prices. This could lead to serious financial problems for you as you may lose lots of money from your investment.

Major factors

In order to use the price action strategy in binary option price action games, you must be very sure about your breakout or the break-out of the price. This is because the price movement of the underlying asset is affected by many factors including: 

  • Supply and demand; 
  • Political events;
  • Changes in the world and e.t.c. 

To determine the breakout, you must look at the daily chart of the price. If you find the price pattern has a distinct upward or downward trend, you must be sure that the price action strategy you have selected is right for you.

Understanding Currency Options Trading

Currency options trading is a potentially lucrative alternative to traditional forex trading owing to its inherent flexibility along with its capacity to amplify returns through the use of leverage. It can be defined as an option for foreign currency that gives the trader the right to either purchase or sell a specific spot contract at a pre-decided price within a definite time frame. The spot contract referred to in this trading involves the actual spot currency and not the futures contract, hence, trading on these options carry the same risk as trading on currency futures. However, there are several benefits associated with options for currency trading. These benefits include the following.

Currency options trading

Contract

Trading currency options provides the trader with unlimited opportunities for earning profit without any form of financial risk. Because the contract is only created when the strike price is conceived at the option expiration date, the trader is afforded unlimited chances of determining the price that would warrant a sale of the contract. This implies that there are no restrictions on the price range, and hence, traders can sell at the peak of the trend at the lowest possible price and maximize the amount of cash that they earn from the deal. This also reduces the potential downside risk that one might incur if he were to use the leverage.

Different risks of trading

Since trading currency options involves a fixed exchange rate, one gains the advantage of predicting the actual rate of currency based on the movement of spot currency. For instance, if the price movement is in favor of the options buyer, he could exercise his right to sell at the expiration date. If he chooses to hold, the trader would risk receiving a lesser amount than what he had paid during the option period. The downside risk in this case is considerably less than that of the conventional options. It is because of this advantage that options for currency trading have higher payoff rates. The payoff is also due to the fact that if the expiry date happens to be on the weekend, traders can purchase and sell as the spot rate may have increased by the time the option expires.

Currency options market makers and dealers

There are currency options market makers and dealers that facilitate the trading. Their job is to: 

  • Quote the spot rate;
  • Create an interest pool for the dealers. 

When there is more money in the pool, more traders would be willing to buy or sell the contracts. As a result, the implied volatility increases and hence, the payoff becomes larger. Since there is no limit on the number of times one can exercise the option, one may continue buying and selling as long as the strike price remains unchanged.

Stop-loss

Options trading requires that the trader is able to establish a stop loss before proceeding with the trade. The stop-loss orders are normally set at a specific percentage of the total amount of the investment. It is often the case that the stop-loss orders are implemented based on the assumption that the trader would not exercise his option to sell if the investment is under a certain threshold. The stop-loss orders help the trader to limit his losses and hence, he does not need to spend too much money in options trading. However, it must be ensured that the stop-loss orders are maintained even if the price goes up beyond the specified limit.

Types of brokers

There are options brokers who help in currency options trading. Some brokers provide trading advice to novice traders and help them execute successful trades. For example, IQ option offers tips and advice on: 

  • How to choose the most profitable trading strategies;
  • Which signals to use;
  • In what you should invest. 

Most brokers would provide trading options for a small fee. For experienced traders, they would advise the inclusion of stop-loss orders and the use of options trading calculators.

Online calculators for traders

For forex options trading, the best place to look is the internet. An online calculator can be used to determine the amount of return on investment that you can expect over a period of time. You can also find some valuable information about the currency options market. Some sites provide a fundamental analysis of the currencies and other useful data. A good number of websites provide some useful information on currency options.

What you should know

It is necessary that you have basic knowledge about forex trading before you start to look for an options broker. It is a very complex process and there is a high risk of losing the invested amount. You must be clear about your goals and objectives and make sure that the specific goals and objectives are clearly defined before starting to trade options. There are plenty of options brokers who provide options trading services. You can easily search the internet for the top 10 brokers in the trading currency options market. Once you find one that meets your requirements, then it is best to sign up with him and get started with trading currency options.