In binary options trading there are two aspects that should not be overlooked. On the one hand we have the information, which can an interesting advantage when operating. Pay special attention to any information that affects the market and especially to analyze the factors that influence both directly and indirectly in the price fluctuations of the underlying assets that we are interested in trading.
On the other hand we have the strategy. Having a solid plan and well structured investment will be essential to achieve a much more balanced and profitable investments. So yes we make good use of information and use the appropriate strategy to obtain the results of operations will be much better.
To choose the right tactics will be convenient to ask first for the investment objective. That is, what we hope to get trading with binary options? There are strategies that allow us to increase profits while others are more oriented to limit losses somehow.
So depending on the needs of each is more convenient to use a strategy or another. Pay attention to the order of the strategy and learn how to put into practice.
What is the objective of the strategy?
The support and resistance strategy serves primarily to control a much more accurate price fluctuations and is also very useful for capturing those moments where investments will be able to provide more guarantees of success.
What Do We Need to Know?
To implement this strategy it is important to read the charts and have some fluency with technical analysis. Yes dominated the market analysis will not be difficult to find these support and resistance levels, but probably best if we see them make a chart and look closer.
To identify these levels we can use any of these methods, either through technical analysis or a price chart. With the help of a graph may be faster to find these points, since all we are shown in a much more visual way and that speeds up the identification process.
How The Strategy is Used?
To develop this strategy, the first step is to find the aforementioned levels of support and resistance. To give us an idea of what to do I will briefly explain the concepts of support and resistance:
- The level of support is the minimum price the underlying asset has reached before, ie, a price level below the current price. In this situation it is expected that the upward trend predominates and therefore exceed the purchase sale. Yes the trend is down and we controlled the level of support we can benefit from a rebound in the price itself remain alert, as near this level any downtrend will automatically braking.
- The resistance level is, how would expect, the concept opposite to that just explained. This means that the resistance level is a price above the current maximum contribution achieved in advance by an underlying asset. At this point the upward momentum loses strength and what we need is to bet on a falling price.
Once we have clear concepts and just have to find these levels in the graph, have them controlled and operate based on the same. Yes we lose detail can intuit much easier when the price of an asset will remain in trend, either upward or downward, and when amended with a sudden surge.
To use this strategy in commodities, indices and values is easy, so needs no explanation. But maybe you interested to know how to use this strategy supports and resistance to trade with currency pairs. Basically you should know that:
- When the price of an asset reaches its torque resistance level and the respective do not, it is likely that the assets of the couple is not close to that level of resistance is the one that will perform better.
- When the price of an asset torque reaches its support level and the respective makes it unlikely that the active torque that is close to that level of support is the one that will perform better than the other.
Which Broker Should You Use?
There are currently over 250 binary options brokers. Only 20 of those brokers are actually licensed and regulated by a governments financial regulator. Visit the Binary Dealers and see their updated list of reliable brokers here.