The structure of binary options trading: Analytics

Graphic figures in binary options

Tags: Indicators 10 min read One of the most important features IQ Option provides to traders is the ability to stick markers and symbols to an graphic figures in binary options diagram.

To put it simply — the ability to use technical analysis. Web-based binary option platforms are rarely equipped with drawing tools and — even more rarely — with built-in indicators.

The structure of binary options trading: Analytics

The availability of technical analysis tools makes IQ Option extremely functional. The Importance of Drawing The drawing board is an essential technical analysis tool. Above all, this is due to the fact that many trading systems and a significant number of strategies are designed to think that traders rely on some elements of the diagram—for example, the support and resistance lines. Every trader chooses the lines and shapes he needs, as well as the timeframe for them, by himself. For this reason, it is extremely useful to plot markers on a diagram.

There are many ways to use such markers.

Graphic trend analysis binary options - Graphic Trend Analysis Binary Options

Of course, the most common is to make them display trends. Trend is the most important thing in options trading, and it is of great importance to track trends. Three Peaks For example, the diagram shows that a Three Peaks pattern is generating, but to identify the entry point, i. You can keep track of the correctness of the figure generating process and get a clear and understandable entry point only by using graphics.

The tools can be used not only to work with graphic strategies and simple patterns that are generated on the diagram.

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They can also be used together with indicators that are present on the platform. All of them can be used both individually and jointly. Indicators help traders forecast the direction of price movement correctly. Bollinger Bands Bollinger bands is one of the most popular indicators.

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Based on data from the moving average and standard deviations, it creates a corridor within which the price moves. Focusing on the corridor borders, we get signals for the entry. Bollinger Bands Signals Moving Averages Moving averages show the average asset price based on a predetermined time interval—for example, 14 days.

If the diagram crosses the moving average, it is a signal to buy options in the direction of the breakthrough.

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The longer the time interval is, the more accurate are the signals. However, their number will also decrease. This indicator is also very popular and is one of the most widely used globally. It reflects both the strength and the magnitude of price changes.

Unlike other indicators, RSI is not displayed on the chart in any form but is built in a separate window just below the chart. A lot of different strategies are based on this indicator. RSI shows asset overbought or oversold levels based on historical data.

Graphic figures catalog Graphic figures catalog What is a technical analysis for binary options? If briefly — that is the basis of all the basics of binary trading. Analysis of binary… Graphic shapes are one of the most powerful and intuitive tools to help accurately identify the trend and determine its direction. They are used by both beginners and professionals, graphic shapes able in some cases to completely replace the technical analysis and to run without signals and indicators. Graphic shapes are divided into 2 types: continuation patterns and reversal patterns.

RSI signals Alligator Alligator is highly competitive with the previous indicators in terms of popularity. It is presented as three moving averages of three different periods.

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When the lines cross, it means that the trend is about to begin. Once all three lines start pointing in one direction, the trend begins. After that, we should follow the trend. A number of profitable and simple strategies that have been successfully used by traders worldwide are based on Alligator.

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Alligator signals Using technical analysis indicators helps not only get completely understandable analysis data, but also unsophisticated and clear entry and exit points. Moreover, thanks to Alligator the trader can fully track all opportunities, as the proper analysis of the price movement requires not only the information that an indicator itself can provide.

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Quite often, for example when using Bollinger Bands, traders use support and resistance lines to get a correct and clear signal to enter. They minimize the risks faced by traders. It should be noted that it is almost impossible to run such lines without a drawing board. The use of both indicators and a variety of graphics on the IQ Option platform is not graphic figures in binary options. You can put all necessary markers and indicators on the same diagram to make your technical analysis even more efficient.

It allows users to identify entry and exit points much more effectively, as well to analyze the diagram and to significantly reduce the risks. You can make more money by combining indicators and diagrams to filter the received signals with different tools.

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It is important to note that drawing tools can not only support us when working with certain indicator-based strategies, but also serve as a basis for profitable strategies. Also, they are extremely useful for hedging and working with patterns — all this makes the IQ Option drawing panel useful and important for traders. Trading with the use of indicators and graphics can ensure a regular income.

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Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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