How to make technical analysis in binary options - MT2Trading Blog
How to make technical analysis in binary options. Technical analysis is the fundamental pillar of short-term trading, and therefore it should be your top priority when trading binary options. To do a good job of technical analysis in binary options, you must take into account several important points, such as timing, long and short-term patterns, long-wick candles, short-wick candles, and what this implies for the following market movements. This will allow you to know 3 important indicators that will help you predict which is the most likely movement of the market: the price, the market volume, and the open interest. Trading binary options are more difficult than you might think, it is not just randomly opening and closing trades, it is about thinking and acting accordingly. Thanks to trading robots like MT2Trading, much of this work can be relegated to software that will allow you to get on with your life while trading for you; automating your trading process, maximizing your profits. Still, we consider it important that you know what the fundamentals of technical analysis are and how to perform it to create a binary options strategy that is more likely to be successful. Performing technical analysis on binary options: How to read the charts? The line graph is the easiest to analyze and in it, we can find at least 3 important parts. Axes. Oriented in the Cartesian plane: on the X-axis are the temporality data and on the Y-axis the prices. In general, the chart is set to measure between the historical minimum and maximum prices. Data mark (line) This line is automatically drawn following the relationship between time and the historical price, marking the exact point where an asset is located in real-time. The current price. The latter is one of the most outstanding values of the line charts since they show exactly the current position of the market, marked in red if it has recently fallen or in green if it has risen. This is the configuration that line charts have in almost all brokers. The information they offer mainly indicates to us which have been the points at which the market has reversed its trend on different time scales, which can range from one hour to several months, and even years, in case we want to monitor an asset for a much longer time. In the case of candlestick charts, the situation is a bit more complicated. These also record the ups and downs of the market but in a much more precise way. The candles are thick lines continued by thinner lines. The thick lines are the bodies of the candles and the thin lines, the wicks. The bodies tell us, to put it more simply, strong movements. Indicating a blue candle if it has risen and a red one if it has fallen. The wicks indicate the landslides and are very useful to measure trends, although for this much more complex calculations are needed, really, to begin with, these data are what interest us. How to determine a trend in a technical analysis in binary options?