VFXALERT
Binary Options Real Time Signals
WHAT ARE BINARY OPTIONS?
Before starting to trade, let’s clarify what binary options are. A binary option is a bet for the movement of the price for a certain asset based on the suggestion of whether the price for a certain asset will fall or rise for a specified amount with the expiration of this bet. The answer in this situation has only two variants: yes or no. The main goal of the trader is to make an accurate forecast for this movement. Then, there can be two variants for the development of events: the loss of money (if the forecast turned out to be incorrect) or payment (if the forecast was successful). That’s why these options are called binary.
TOOLS FOR TRADING BINARY OPTIONS
Trading instruments are equipment that helps to make the right decisions. Remember that there is not a standard solution for using trading instruments. However, if a trader owns different instruments, then he will be able to determine the price behavior of the corresponding assets with higher accuracy. The main trading tools are the economic calendar, charts, and indicators.
Types of market analysis
There are two main types of market analysis: technical and fundamental. The fundamental analysis describes the influence of economic factors on the behavior of trading instruments. This type of work is based on the analysis of fluctuations as a reaction to the financial news. Technical analysis is based on the visual evaluation of the graphic figures of the charts.
Instruments for fundamental analysis
Economic calendar. The economic calendar shows the main economical events (information from the state banks, decisions of the economical departments) that may influence the market situation. Such an instrument allows traders to monitor the market in real-time.
Market trends. Market trends display the upcoming change of certain trends in different timeframes. The trader compares the data of the trends with information from the calendar and creates the forecast.
Instruments for technical analysis
Online-chart. This is a graphical representation of price movement. The main task of the trader is to analyze the graph and to define the trend, reversal, and the point of breakdown. Identifying pivot points, trends requires knowledge to work with live binary options charts.
Technical indicators. A technical indicator is an instrument that makes certain calculations according to specified formulas. Most often, indicators look like graphical constructions (lines, histograms) that are automatically plotted on the chart.
Types of indicators
Trend indicators. These indicators are applied to identify the trend or reversal and to define its power and direction.
Examples of indicators
Bollinger Bands (BB). This indicator reflects the current fluctuations in the price of a stock, commodity, or currency.
Parabolic SAR. This indicator is used to identify trend reversal points and place stop loss.
Oscillators. These indicators help to identify the channel’s borders and the zones of the overbought/oversold.
