The structure of binary options trading: Analytics

The structure of binary options trading: Analytics

Binary Option

2020-05-09 14:54:00

The analysis of binary options can be divided into two components conditionally: analytics of binary options on fundamental indicators and technical analytics of options on the price chart. Each of these types is divided into a set of other components.


Binary options - the fundamental analysis


The fundamental analysis for various financial instruments can significantly differ. It is necessary to consider the whole complex of factors, stacking them in one system of influence on a financial asset.

For the fundamental analysis of the movement of the price of the option for various actions the following factors are considered:

  1. 1. Reports of the large companies relating besides to the sector of economy;
  2. 2. Statistics on the industry refecting balance of supply and demand;
  3. 3. Macrostatistics on the industries of the certain countries having a strong impact on situation in the industry in general;
  4. 4. At the events (a meeting, the statement of heads of largest Central Banks).

First of all, the movement of an asset of some concrete company is influenced by statistics of this company and its corporate news.

Influence the movement of options on currency pairs:

  1. 1. Statistics over the countries of both issuers and the eading countries of the world (USA);
  2. 2. Every event and news from the Centra Banks of the connected countries;
  3. 3. List of the specific factors reating to the chosen currency pair.

Many traders analyze the market in advance that at the time of an important news release to participate in the auction that in the correct analysis can make the raised profit. The employment indicators in the nonagricultural sector of the USA called by Non farm payrolls or "non farm"among traders first of all belong to such news. They are released monthly on the first Friday.


The technical analysis for binary options

This way of forecasting of the market is research of a certain repeating changes on the price charts.

It includes the following subspecies:

  1. 1. Overview of indicators;
  2. 2. Graphical analysis;
  3. 3. Division of the charts into cycles;
  4. 4. Eliot's wave structuring;
  5. 5. VSA, volumes and candle patterns.

Any of these types of technical audit is not capable to give 100% of the forecast, but the probability of the successful transaction increases if the same signal arrives from various systems. It is difficult to master all methods of the analysis. The special program of the analysis of binary options can help with it. It can be bought or got free of charge – some brokers order creation of programs analyzers and distribute them for free to attract clients on the website.


Indicator analysis

All indicators can be divided into two big groups: trend and oscillators. It is possible to understand in what market they are used based on the name.

The most popular trend indicators are:

  1. 1. Moving Average (MA) with various periods;
  2. 2. Alligator - three curves based on MA with the different period, one of Bill Williams's indicators;
  3. 3. Bollinger Bands is an indicator allowing to trace turns and trends visually.

Trend indicators bring the greatest benefit when the price is in a long and powerful trend. They help to find the moments of kickbacks and to come into the market at the most favorable price.

When it is difficult to trace the direction of the movement of the price visually and the market is in a flet, you can get mpre information and advantage from oscillators. The most used from them are Stochastic, Rsi and MACD.

Graphical analysis

This type of the analysis means search of graphic figures on the price chart: triangles, rectangles, flags, pennants, etc. All these figures are divided into figures of continuation and trending patterns. Their correct recognition helps to decide on the direction of the price at a given time.

  1. 1. Continuation figures: a flag, the pennant, ascending/descending /symmetric triangle.
  2. 2. Turning patterns: the head and shoulders, the turned head and shoulders, double top and a double bottom, threefold top and a threefold bottom, diamond and others.


Cycles and Elliot's waves

One of the most difficult types of research of the market. There is a saying among traders "every waver sees his waves and cycles". Really, it is quite difficult to define where should price be in a cycle correctly.


VSA, volumes and candle patterns

The only way which is used by every trader is a candle analysis, as binary options are trading good on it. You can get the best signals on a turn and on continuation of a trend from candle patterns in combination with levels and volumes. However, this type of the analysis requires certain experience and skills for efficient use


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