5 Tools for binary options traders: An Incredibly Easy Method That Works For All

Binary options are a trading platform where traders earn profit easily. It’s the most technically advanced type of financial trading.  It has been based on internet technology and on many more technological advances. New technologies are adding up day by day, which are not adjusted but still there are some old techniques and tools which are used to analyze the market. 

There are many traders who don’t understand the platforms of trading, which provide with features, instruments and tools that can help them increase their profit. But in order to increase profit the traders must know that, the following charts platforms don’t provide clear information about the trading. And that’s when the traders need the tools to understand about the platform trading. If traders don’t understand the charts then they won’t know what’s happening in front of them, despite they will face a loss.

In binary options there are some tools which are used directly, and some are used while trading. So when it comes to make profit a trader can use the best of the tools.

There are many tools that are used in trading binary options, but among them only 5 tools is the most important tool which helps the traders to maximize their profit.

Candlesticks Chart

Candlesticks is among the most popular and most useful chart for financial trading. To become successful every trader must know about it. Trading has confusing charts with in decipherable lines and strange indicators that don’t seem to make any sense. The Raw Data of a platform is also known as the “Naked Price Action”. This is the most important information for any trader. It tells a trader what exactly the price is doing at any given period.  Any of the indicators overlaid, they all take information from the Raw Data of the price action. Candles stand to be “Bullish” or “Bearish”. The bullish candle is represented by green or white color. A bullish candle shows that the price has increased over the time period. The bearish candle is represented by red color. A bearish candle shows that the price has decreased over the time period. When we are talking about periods, what it means that each fully formed candle represents the price action of a specific time period. When we are talking about periods, what it means that each fully formed candle represents the price action of a specific time period. If you’re looking at an hour chart, then each fully formed candle represents an hour worth of price action, and if a daily chart, then each fully formed candle represents a day worth of price action and so on.

candle stick chart

The rectangular part of the candle is known as the Real Body. The real body shows the specific price action relating to the opening and the closing price. So, for the bullish candle the bottom of the body shows the opening price and the top of the candle body shows the closing price. But the bearish candle is reversed. So, the top of the candle body shows the opening price and bottom of the candle body shows the closing price. Since the bearish candle is displaying price decrease. The candles have two parts – Body and Wick. The longer the wick, the bigger the chances that market will move in the opposite direction. Candlesticks should be used as part of the analysis prior to the trade execution.

Support and Resistance Level

Support and resistance are somewhere in the chart price has changed directions repeatedly. A bullish move which turns bearish has met Resistance. The opposite is a bearish move which turns bullish met Support. Support and Resistance can last minutes, hours, days, weeks and even years. Markets have very long memories. This does not mean that Support and Resistance areas are never broken; in fact they are regularly broken. When broken, by a bullish move Resistance often becomes Support and by a bearish move Support often becomes Resistance in the market for the future. Support and Resistance works on every time frame.  

support and resistance level

Markets move in the relationship strength of the Bulls and the Bears. So, when the bulls are in control the market pushes higher and the bears are in control the market falls. There is always a battle going on between the bulls and the bears. And this is what moves the market. This is why we see the markets moving. As the bulls push higher, the market turns, the market has met resistance. As the bears call the market to fall but then lose control to the bulls, the market has met support. When the market breaks resistance it often becomes support. This is how the traders use Support and Resistance for trading.

Roll Over and Double Up

Rollover allows the trader to postpone the original expiration to one of the next available expiration options. There are few different options to for the rollover option to be available. 

• The option is still available for trading and is 2 minutes or longer before expiration.
• The option has to be in a losing position.
• No rollover available for the last expiration time of the trading day.
• The trader can rollover only once for each option.

Double Up feature is when a trader is confident about the trade he/she is doing then he/she doubleup the investment as they invested before. This can be done before any expiration of a trading. The trader can win the double money or lose it. There is no 100% guarantee of success.

Sell and Buy
A put option is an option contract in which the holder (buyer) has the right (but not the obligation) to Sell a specified quantity of a security at a specified price (strike price) within a fixed period of time (until its expiration). 

An option is a contract that gives the buyer the right, but not the obligation, to Buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.

Demo Account
You might be thinking why Demo account is included as a tool? Demo Account is the best tool for learning binary options trading. It’s a trading account that allows an investor to review and test the features of a trading platform before funding the account or placing trades. A demo account is typically "funded" with simulated money, which allows the investor to conduct fictitious trades in order to become familiar with the ins and outs of the platform. 

Demo accounts can allow a trader to experiment with a wide array of financial products, such as options, futures, Forex and other derivatives. In addition to allowing an investor to become familiar with the available tools, it provides a way to test different trading strategies, such as carry trades in Forex. 

Demo accounts are usually limited to a certain period of time, usually seven days. It is still a great opportunity for all binary options traders to become more successful in the trading process. After the demo trading has been experienced, trading on real money platform should be more successful and pleasant experience.

Read Beginners Guide For Binary Options From My Experience