You will not have to buy costly bets that will have a greater risk than reward. If you are starting out in binary options trading , this is a great way to start your trading career. Most binary options brokers do not provide charts for use in trading analysis, so you have to get the charts yourself.
Since the underlying instrument is a forex instrument, you can easily get a chart by downloading an MT4 platform from any of the popular forex brokers like forex. The strategy in question is to be implemented on a minute chart, and the strategy will make use of the following indicators:. We also wait for the MACD lines to cross from negative to positive. We also wait for the MACD lines to cross from positive to negative.
Once you have got a confirmation of the signals, the next step is to choose the binary option trade of your choice. Make sure you identify the resistance points and keep your strike price below the resistance so you can be sure the price action will actually touch the price barrier you have set.
In this instance, you can set your price barrier well below the nearest resistance so the price action has no chance whatsoever of touching your price barrier. Repeat the same trade sequence in reverse fashion if your signal indicates a bearish outcome. Whichever trade you decide to take, you should at least have 4 different trade options to benefit from:. The EURUSD is the most traded and most liquid pair since this currency pair is being sold and bought numerous times on a daily basis.
It goes over the trading table as the best know currency pair. Namely, these currencies are close in value and they do not account for major losses when it comes to individual trades. Since binary options are close to Forex trading, this pair is one of the highlights in the options market as well. Before you enter a binary options trade on this currency pair you might want to know the following:. To stay in the loop, it is very important to follow the economic news related to this currency pair since it contains a lot of useful information regarding price movements of the two currencies.
As a committed trader, you should take a look at the European Consumer Price Index CPI since it reveals the inflation status which is one of the key factors for the European Central Bank when drafting its monetary policy. All of the economic news and releases give useful information to traders and can help them acquire more knowledge related to the economic movement, but they do not represent an instant success ticket, but rather give hints to traders of what is going happen at the next meeting and what decisions will be taken.
Since the USA is the biggest economy, closely followed by the Eurozone, economic news is being released regularly on a monthly basis and the news which one should take to heart as a trader are discussed below. As a trader, make sure to take into account releases relating to these two factors, but some other sources will also be to your benefit. Studying the different information from all of the listed sources can help you gain a better understanding of the market.