Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

You from tradingstrategyguides, could you create an indicator with these settings for us binary traders. That way we would be better able to migrate to Forex. remembering that I am a loyal customer of yours and I pray that one day you can help us with this. And thank you so much for that knowledge. Does the starting point and ending point of your 50 candle low have to be the same color candlestick too? Thanks for the article. I had a quick question, what exactly do you mean on 5 when you say ''strategy based trading technique to reveal the market direction''?

Are you referring to building a strategy multi-step indicators in a trading platform? The article on binary option trading strategy was useful.

Thanks sharing for valuable information about binary options. This step-by-step guide will show you an easy way to trade with the MACD indicator. Get the free guide by entering your email now! Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. Binary Options Trading Strategy — Best Seconds Strategies by TradingStrategyGuides Last updated Nov 1, All Strategies , Options Trading Strategies 21 comments.

And that, my friends, is the real beauty of binary options. What are Binary Options? Now, let's start by understanding how binary options work. So, the first thing you need to decide upon is to select the asset to trade. Trading binary options require you to correctly forecast two things: Whether the market will rise or fall.

Your forecast needs to be accurate during a certain time frame — called the expiration time. The Best Binary Options Strategy Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. Use the second chart 1 Minute TF The 1-minute binary options or the seconds time frame is the best chart for trading binary options. See below: Step 2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal.

See below: Step 3: Look for a bullish divergence to develop between the RSI indicator and the price. See below: Step 4: Buy a Call Option after the first candle that closes above the high of the 50 candle low The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. It's that simple! If you want to buy Put binary options, use the same binary options guide, but in reverse. See below: Conclusion — Binary Options Trading Strategy Before learning how to make money trading binary options you need a great Binary Options broker.

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Close this module. Get our FREE MACD Trend Following PDF 📕. Email Enter your email address. In binary options trading, price plays an essential factor. But besides the price, there are other important aspects of binary options trading, like volume and volatility.

Volatility in trading is a way of analyzing the change in the value of an asset in a given time. An asset whose price moves up and down is considered more volatile than an asset whose price stays flat. The price of an asset or a binary option is strongly affected by its volatility.

That means more volatile assets have a high price and the assets with low volatility have less price. Although volatility is an important factor in binary options trading, traders tend to avoid it. And this thing makes them lose huge money. If you want to understand how to apply volatility to binary options or know about the indicators used for measuring volatility, read this guide. You can invest your money i n a highly volatile asset if you like to take risks.

If your speculations for a highly volatile asset are correct, you will win the amount. Otherwise, you will lose your money. If you want to play safe , you can choose an asset with limited volatility. Less volatile asset means less profit, but it also means limited loss. The second way to apply volatility to binary options is by choosing an asset and sticking to it. In this case, you must adjust your strategy as volatility changes. By analyzing market volatility, you can also know about the short-term market cycle to make profitable entry points and adjust your strategies.

You should buy an asset because you can get better positions at better rates of profitability. No matter which situation you use for applying volatility, it affects the price of binary options. It shows that your position in the market is Out of The Money. Here, the possibility of silver expiring In the Money depends on its volatility.

If silver has been trading in the large range all day, with high price swings, that means the possibility is high. However, if silver has a small range all day, the probability is less.

Volatility indicators can be seen as technical indicators that you can use to understand the nature of the trading market. Indicators use market movement, data of the past, and a formula to show what will happen in the market. Volatility indicators are different from usual trading indicators as they help you understand how far an asset has moved from its directional value.

An asset with low volatility shows a strong sense of direction. However, a highly volatile asset moves away from its average direction. It is used to calculate the value of an asset. The data that the oscillator generates is drawn into a separate chart. This oscillator-style indicator shows how much the price of an asset has moved in relation to its past value.

This indicator moves between 0 to One interesting thing about Relative Volatility is that it measures market strength. Besides this, you can also use it as a confirmation of other signals. You can use this indicator to measure volatility as a movement between open and close. Also, it does not have gaps.

It shows the top and bottom of a trend and is used as a confirmation of other tools and indicators. Average True Range is the most accurate volatility oscillator indicator for Binary Options that you can use. With this indicator, you can understand how far the average period of an asset has moved. It also eliminates market gaps by identifying them in the calculations. This indicator use volatility for calculating price channel. The data generated by channels is drawn directly into the chart.

It predicts the range in which the market will stay by surrounding the current market price. Bollinger Bands is an excellent channel indicator that creates a price channel around the current market price. It consists of three lines, i. This indicator predicts whether the market will drop down to the lower line or stay at the upper line. The middle line indicates resistance or support. Volatility plays a vital role in binary options trading, and you must not ignore it.

By using volatility indicators for binary options trading, you can double your profits. You can even combine oscillator and channel indicators to generate accurate information. Once you have the data, you can develop a helpful trading strategy to win binary options trades.

All in all, volatility is an essential factor, and you must know how to apply volatility to binary options to increase your profits. Show all posts. Write a comment abort. Save my name, email, and website in this browser for the next time I comment. Is Binary Options Trading Legal in Hong Kong? Why you should not trust Binary Options account managers?

Home » Guide. In this guide from experts, you will learn everything about trading Binary Options. We will introduce you to the basics, show you how Binary Trading works, explain to you the best binary trading strategies and answer all questions concerning how to trade Binary Options. Be aware of binary brokers which just want to steal your data or money — many Binary Options brokers are scams.

Therefore we will show you reliable brokers which we can recommend without any doubt. Binary Options are a financial instrument that gained the attention of many traders in the past years.

You can trade on long or short markets within a defined period of time. The special thing about Binary Options is: You got only two options as a trader. You bet on rising and falling markets. As a financial instrument, Binary Options are very flexible — you can use different time periods and trade almost every asset. The time periods normally start from 5 seconds and go up to at least one hour. So you only have two possible ways to place a trade:. Continue reading to find out more detailed information about how to trade Binary Options.

Proper Knowledge is the key to sustainable success. You have also to be aware of the risks that come along with trading a Binary Option. In the next sections, we will further explain to you how Binary Options trading works.

Not every online broker or Forex broker offers Binary trades so you have to look out for a firm that offers this financial instrument. In the table below you can see three of our most favorable Binary Options Brokers. These are brokers which fulfill many different requirements we set when testing all brokers. They are safe, give a high return to you as a trader, and are located all over the world.

With every broker, you can open a free binary demo account to get started risk-free. They are retail investor accounts that have mostly all functions of a live account — but they have only virtual money in it which you can add for free any time you want.

Learn more. Load video. Always unblock YouTube. A very important question to answer is the safety of a financial instrument or a broker such as Nadex North American Derivatives Exchange. Trading a Binary Option is safe, but you need the right broker. It should be reliable, trustworthy, and regulated. In our Binary Options Broker review we discussed the Pros and Cons of our ten favorable brokers, regulated and unregulated ones.

Read the article to get into it in detail. We did a lot of research while writing all these articles and can say that a regulated broker never cheats on you as a client. So in conclusion, is Binary Options Trading safe? Use a regulated broker if you want to get started with Binary Options trading. Never trust blindly and do your own research before you register with a broker and deposit money.

Additionally, you can rely on our information. There are a handful of safe and well-known regulators. Also be aware if trustful institutions such as the Commodity Futures Trading Commission CFTC , the National Futures Association NFA , or especially the Securities and Exchange Commission SEC express concerns.

There are many many Binary Options Platforms available and you have to search for the one that is not only safe but also offers the functions you want to have to trade effectively. The good thing is: Nowadays almost all brokers offer the same functions like mobile trading or modern and flexible charting software. Especially the opportunity to trade via a mobile app is important if you want to trade where ever you are. Many platforms offer so many functionalities that they can confuse you.

But some of the brokers offer educational material as well. Video tutorials, step-by-step guides, or even individual customer support via mail, phone, or chat to answer your detailed questions.

Every platform offers even a few indicators and technical tools , different chart types like the most common candlestick chart , and many more things to analyze your charts. Some brokers even give you free and direct access to economic news. You can use that to be up to date all the time and react to the news that impact the assets you trade with.

One more word about indicators : They are very important when trading Binaries. We recommend you get familiar with the most important ones. Read the linked article to learn more about how to use MACD, RSI, etc. To react to the markets where ever you are you need a broker that offers mobile trading. So the only thing you need to trade is the internet. Most brokers offer mobile trading, and plenty of them developed a special app for trading on your smartphone.

You can download it in the App Store iOS or the Play Store Android. If a broker offers a mobile app, it normally does it for both common systems. This allows you to trade 24 hours a day, 7 days a week, no matter where you are. You have more tools to analyze the chart and a better overview if you have one or more monitors and not just your tiny smartphone display.

In the following section, we will show you how to trade in detail. Follow these five simple steps:. The good thing about Binary Options is that you are free to choose your assets.

You can choose between Forex market, Stocks , Commodities market with assets like gold or oil , Cryptocurrencies , stock index, and more. No matter which asset you prefer, trading it via Binary Options always works the same way. The process shown below is always exactly the same. If you are new to trading Binary Option, we recommend you start with a practice trading account where you can trade and practice without risk.

Once you have chosen an underlying asset or underlying market for example forex market you are ready to go. The main question is: Is the asset price going up or down in the future?

You have to to this forecast. To get an answer to this question, you can have to identify the market trends and use indicators to analyze the underlying asset. It is very important to have a working strategy to gain maximum profit.

Use technical analysis to get trading ideas and develop your own trading strategy. You can also use the different education tools many Binary Options brokers offer. Every Binary Option contract expires after a defined time expiration date. So within your prediction of whether the market price will raise or fall, you have to consider the expiration time.

You can set it in a range between 5 seconds or many hours, the choice is all yours. Just to remind you of the two options you have:. The last step before you can place your trade is to set the investment amount. Some brokers limit this to a specific amount which often depends on your account level.

Be careful: Your investment is the amount of money you can lose. If your prediction is wrong, all of your money is gone. Some brokers want you to verify the trade, so you have to do another click. Some brokers offer to close trades before the expiration time is up — this allows you to reduce the impact of a wrong decision by closing the trade when it hits a certain price.

The yield depends on which broker and underlying asset you select. The payout fixed monetary amount formula is easy. You are completely free to trade any underlying asset you can imagine — and your broker offers. No matter if you choose stocks, commodities, forex, or crypto, the process is always the same. Most of the brokers we tested give you the chance to trade more than different assets.

The expiration time differs from broker to broker. But most of them offer expiration times from 5 seconds on. The upper limit mostly is one hour or three hours. Not every broker offers the same maximum yield return on investment for a specific asset. The better choice if you only want to trade Bitcoin is broker B. Almost all brokers offer different account types that are linked to the amount of money you deposit.

To attract traders and animate them to deposit more and more, you will get a higher payout with a better account level. No doubt — Binary Options are a risky financial instrument. Nevertheless, there are many advantages that overweigh the risks. Many new traders fear the loss of all of the money they invest in one trade. Sure, you can lose all the money you placed in your trade — but not more. Many other financial products work another way, where you can lose more than you have invested.

There are a lot more advantages, for example, that you get a high asset payoff no matter how strong the binary options trading market reacts and moves. The price of your chosen asset just has to go up or below your strike price and you win.

com Cookie Name vuid Cookie Expiry 2 Years Accept YouTube Name YouTube Provider Google Ireland Limited, Gordon House, Barrow Street, Dublin 4, Ireland Purpose Used to unblock YouTube content. Using this indicator, any trader can track an asset or binary options price through a price versus time chart. However, a highly volatile asset moves away from its average direction. Then, you can use the funds in the trading account to make trades on the live market. These firms are thankfully disappearing as regulators have finally begun to act, but traders still need to look for regulated brokers. Email Enter your email address.

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