Analyzing and trading in binary option reviews


Signals are trades analyzed either from real people or automatically generated tools or strategies. Indicators are tools which help you analyze data yourself. When you combine technical indicators with charts, then you have increased the probability of making winning trades, and doing that consistently.

The chart below is an example of how I use a strategy based on the MACD technical indicator, as well as the moving average trend indicator to determine what the price action of an asset will be. Once more, this can be used to trade all manner of possibilities.

This particular strategy correctly showed that the price action of the AUDUSD would breakout in an upward direction following the cross of the moving averages as well as the MACD crossover from negative to positive. I could place the following trades in the market using this strategy:. Knowing how to combine charts and technical indicators to predict price action is known as technical analysis. It is not enough to have these tools. You need to know how to use them. In subsequent lessons, we will show you how.

In the financial markets, the fundamentals of an asset always supersede the technicals. This is why we did a fundamental analysis first. At the time of analysis, there was a meeting of the Eurozone financial ministers to determine how to put together a rescue package for Greece, which was groaning under a sovereign debt crisis.

At the same time, Italy was also on the radar as its debt reached a staggering billion Euros. These were indeed bad times for the Euro and the markets had responded accordingly.

We knew that the markets would be range-bound as traders looked to the outcome of that meeting for direction. Thus, we did not see the Euro climbing past the 1. We headed over to the charts to see what the price action was saying, and we got the confirmation we needed. The trade was then setup on the binary options platform, with a price barrier of 1. As at the expiration of the trade on October 26, , the resistance cap was yet to be breached, putting us in the money. At the time of analysis, there was a meeting of the Eurozone financial ministers to determine how to put together a rescue package for Greece, which was groaning under a sovereign debt crisis.

At the same time, Italy was also on the radar as its debt reached a staggering billion Euros. These were indeed bad times for the Euro and the markets had responded accordingly. We knew that the markets would be range-bound as traders looked to the outcome of that meeting for direction.

Thus, we did not see the Euro climbing past the 1. We headed over to the charts to see what the price action was saying, and we got the confirmation we needed.

The trade was then setup on the binary options platform, with a price barrier of 1. As at the expiration of the trade on October 26, , the resistance cap was yet to be breached, putting us in the money.

Binary options analysis is not about guesswork, or trading on a hunch. You must be able to perform the appropriate analysis of the fundamentals of the asset you want to trade, look for confirmation on the charts and then execute the trade accordingly.