How To Trade Binary Options
To become a successful trader, it is important to know how to trade. This is a question every trader has asked, at one point in his/her career.
- Learning the basics: It is important to become familiar with binary options trading terms. Some of this include; Call, Put, In the Money, Out of Money, Expiries etc. After mastering these terms, you’ll be able to navigate binary options platform and know exactly what you are looking for.
- Picking a Data source: Each trader should have an external source of data and not rely solely on the one provided on the trading website. It could be online charts or other trading softwares like Ninja trader, e-charts or the most popular one, Meta trader.
- The next thing to do is to find a strategy that gives a profitable win-loss ratio. This is the most important, having a strategy that works. For novice traders, you could use charting softwares to create strategies using inbuilt indicators like Moving averages, Stochastics, Bollinger bands etc. Once you have a strategy that has an edge, you are ready to start trading.
- The following step is obvious, you’ll need to create and fund an account in order to start trading. You can check out this page to see some of our recommended brokers. Before funding an account, it is important to look at the platform and see if it meets your requirements. For example the minimum and maximum per trade, minimum per deposit, and also to do some research and find out if the site is reliable. All this matters when you want to invest your money in a binary options broker
Developed by Larry Williams, the Williams %R is a momentum indicator that works much like the Commodity Channel Indicator or the CCI. It is especially popular for measuring overbought and oversold levels.
The scale ranges from 0 to -100 with readings from 0 to -20 considered overbought and readings from -80 to -100 considered oversold.
The William %R shows the relationship of the close relative to the high-low range over a set period of time. The nearer the close is to the top of the range, the nearer to zero(higher) the indicator will be. The nearer the close is to the bottom of the range, the nearer to -100(lower) the indicator will be. If the close equals the high of the high – low range, then the indicator will show 0 (the highest reading). If the close equals the low of the high-low range, then the result will be -100 (the lowest reading).
The most common uses of Williams %R in Forex and Binary Options:
One method of using Williams %R might be to identify the underlying trend and then look for trading opportunities in the direction of the trend. In an up trend, traders may look to oversold readings to establish long positions. In a downtrend, traders may look to overbought readings to establish short positions.
Also, the Divergence between Williams %R and the price indicates that an up or down move is weakening. Bearish Divergence occurs when prices are making higher highs but the Wiliams %R is making lower highs. This is a sign that the up move is weakening. Bullish Divergence occurs when prices are making lower lows but the Williams %R is making higher lows. This is a sign that the down move is weakening.
With this strategy, we use support and resistance to predict the direction of price. This strategy uses new methods of synthesis in the financial markets, and it gives alerts in areas of pivots coupled with the speed of volume.
For 30 minutes trades, you just need to sit and wait for a signal. The strategy for 30 minute trades is a simple and easy one to follow. It is a very effective trend following indicator. You can use the Trade Filter, to follow the trend.
The Grail collection also includes a very powerful strategy for 15minute trades. This strategy is precise and consistent. It is an MT4 indicator which also gives Buy or Sell Alerts. It is a great tool in predicting the direction of the market.
For 5 Minutes trades, we can trade with more serenity. This is the reason why some traders prefer 5 Minute trades to 60 seconds trades. The Grail Indicators for 5 Minute trades has made it simple. You only enter a trade depending on the trading signal received.