Binary Options trading strategies are a dime a dozen. There’s a lot of training available that addresses a specific Binary Options trading strategy or methodology. In many cases, though, there is not adequate instruction provided about the underlying mechanics that create those trading opportunities. I refer to those underlying mechanics of price behavior as strong, organizing principles of the market.
The basis for many binary options trading strategies is a price setup. A setup is recognizable formation that occurs on a chart. It offers the potential for a profitable binary options trade. There are many different price setups that form as a result of the strong, organizing principles of the market. Thus, if you’ll take the time to learn those principles through in- depth study of technical analysis (charting), and also learn how to execute binary options trades effectively, you’ll have the knowledge base to understand almost any binary options strategy In fact, you’ll be able to develop your own strategies if you choose. But if you prefer to utilize strategies developed by other traders, you’ll have the knowledge needed to understand and execute a strategy and to tweak it to fit the current market conditions, which in turn will help you become a better binary options trader.
If you were to review dozens of binary options trading strategies, you’d likely find that the premise of most of them has to do with price behavior that tends to be repeated. The setups develop because market participants react in certain ways causing those repeating patterns to form on charts. Once you understand why and how a setup forms, you can learn to recognize it as it is developing at the right edge of the chart so you can profit from it.