Hey guys, welcome to my binary options guide where we will go over some very important binary options trading patterns. The aim of this page is to help you become a more successful trader through the supplementation of winning trading patterns, vital tips and risk-reduction measures that will available to you below. Lastly, I will provide you a detailed description on how to use Free Binary Options Charts, which are offered to the public through some popular trading portals.
- With every trading pattern listed below there will be a video lecture to help further explain the pattern!
My Strategic Guide for Proven Trading Success
- Binary Options Trading Patterns
- Binary Options Tips
- Important Binary Options Q&A
Learn about Correlation Analysis – Binary Options Trading Pattern 1
What is Correlation Analysis? Simple, it is a form of analysis applied with binary options which focuses on the association between the prices of two assets in different markets, which both on average shift in the same direction. The first rule that applies in order to use correlation analysis would be that both of the targeted assets must be in an interdependent market, an example of this would be Euro/Usd and Crude Oil. Oftentimes the price of these asset’s move in correlation with one another, however, keep in mind that correlation does not always mean causation. Meaning that the price of Crude Oil may rise but it does not guarantee that the price of the Euro/Usd will rise. One easy way you can practice correlation analysis accurately would be to wait for an asset’s closing time, where the institutional traders will try to finish out the trading session strong. So what you, the trader, have to determine is which way the markets are pushing towards at the end of the session and once you notice one of your pairs pushing strongly in a direction you can then correlate that the other pair may follow allowing you to trade two assets. Another good pair to use work with when using this trading pattern would be Gold and the S&P500.
Learn about Fundamental Analysis – Binary Options Trading Pattern 2
What is Fundamental Analysis? In lenience terms, it simply means the analysis of an asset’s competition, financial health, and news relation concerning the asset’s future. When applying fundamental analysis it is important to have access to an online financial portal, such as Google Finance, that will provide you with past market levels, relevant news and a snapshot of an asset’s health.
The advantage of having instant access to online financial portals is that we can conduct targeted research within a short period of time. Picking up on market indicators along with processing important information has never been so easy, thanks to the internet. The whole concept of fundamental analysis is to predict the ‘price evolution’ of an asset’s price trend which in turn requires us to set longer trade expiry rates because we are trying to predict the future direction of an asset. Since trying to predict the future direction of an asset is no easy task it is important to stay away from 60 seconds options when using fundamental analysis because it is nearly impossible to apply fundamental analysis within such a short time frame. One of the best ways to optimize the performance of fundamental analysis would be focus on one or two assets at a time so you don’t overwhelm yourself.
Learn about Price Action Trading – Binary Options Trading Pattern 3
What is Price Action Trading? One of the most popular trading patterns used by traders today, it is a form of technical analysis that relies solely on the relationship between an asset’s current price to its historical price. When using this trading pattern the only type of chart that will work is the candle-stick chart because it is the only chart that shows the live order flow of an asset. In order to use this trading pattern properly you must wait for four steps to take place. During the first two steps you need to wait for price to ‘bounce’ off an invisible level, and then break that invisible level (now called a support level) in a downward movement. Now we wait for price to retrace its way back up above the support level resulting in only one more step. The final step that needs to occur is that we need price to re-break that support level again in a downward movement; once it does we wait for our candle to close and place a PUT trade. If you would like to learn more about price action trading pattern please watch my video and read my blog titled Make Money With Binary Options In 3 Simple Ways!
Learn about the Check-List – Binary Options Trading Pattern 4
How to apply Check-list with Binary Options Trading? This is one of my own trading patterns; it is a step-by-step combination of the above patterns that focuses on the use of research and technical analysis with each trade. The most common mistake made is when traders jump into a trade by pure intuition and no solid indicators. The Check List is simply a guide to use to ensure that we are using indicators before entering the trade.
Choose the right assets
Make sure to focus solely on one or two assets that interests you and focus all your attention on targeted research.
Engage yourself with the assets you are watching while frequently visiting the Financial Portals https://www.google.com/finance. Make sure you stay keyed on any company updates, rivalries, and any information relevant that you can gather from the markets.
Identifying price trends
Use at least one technical analysis method such as the Pivot Points, Price Action, or Correlation Analysis to either support or eliminate your market assumptions. If you are able to confirm your prediction both from technical analysis and the markets, then it is a ‘go’ to execute the trade.
If you are incapable of completing the 3 steps you shouldn’t enter the trade. This trading pattern is a great way to raise your rate of success by will allowing you to intercept between different indicators.
Learn about Pivot Points – Binary Options Trading Pattern 5
What are Pivot Points? Most commonly used by industry’s professional and large institutions, pivot points in definition are ‘major support and resistance levels’ where there is a strong probability of a price reversal, meaning the trend of an asset would shift in the opposite direction. One fascinating fact about this trading method is that many financial organizations are basing their trades on the same pivot points while trading in enormous volumes, which has a direct effect on the price changes of these assets. This causes retail-traders and smaller investors to take the trades at the exact same time and direction in order to ride the same trend. The pivot point trading pattern , when applied with binary options trading, will serve us as an entry/exit indicator.
An example: Yesterday the stock Apple had a high of 448.3, low of 438.22 and ended with a close of 441.35. Given with this data you plug the information into your pivot point calculator where it will give you a pivot point, in this case the pivot point was 442.64, where if the level of Apple reaches it, one automatically places a put prediction. The calculator is solely a technical tool but can be helpful when added in your arsenal of trading patterns.
Below you will find some links that will give you free access to Pivot Point Calculators.
Mike’s 5 Binary Options Survival Tips for Beginners
Trading Tip #1 Avoid emotional trading at all costs, luck is no factor with binary options and it will not help you or anyone else. Avoid gambling with your predictions and use a trading pattern while following risk-reduction methods.
Trading Tip #2 Sign up with a reputable broker and do not sign up with a bonus-offer! Most of the time these bonuses include a withdraw restriction that prohibits you from withdrawing your money until you generate a certain volume of trades. Make sure the broker you sign up with has a reputation to keep; no one wants a broker that will provide crummy service and low payouts. For a list of reputable brokers, please visit my Binary Options Broker Review tab.
Trading Tip #3 Hold the Options over longer time frames, it is no secret that identifying trends over a short period of time is tough and highly improbable over 60 seconds trades. Avoid using the 60 seconds feature and be patient with your trades, don’t fall victim trying to make a few quick bucks.
Trading Tip #4 Do not deposit more money in exchange for a VIP account. Many brokers will try and push you to deposit more in exchange for a free trading guide or additional features. The training offered is less than basic that usually includes a quick demonstration of the platform and a few none helpful tips from a rep. Also the VIP account might include faster service with some of the brands but quality service should be granted for any deposit amount.
Trading Tip #5 Don’t use binary option signals provided by your broker in exchange for a higher deposit, this is yet again another up-sale tactic where some of the brokers will try to get you to credit more to your account. The broker honestly has no interest to provide you with accurate signals and the broker is not your friend. If you are interested in trying an independent binary options signal provider please visit my tab Binary Options Signals.