How to Determine Going Down in Binary Options

In this guide we will learn how to determine whether asset prices will rise or fall, more precisely when we have to press Up or Down. I'm sure many are still using Feeling (guessing), without proper analysis.

I emphasize that trading using that feeling is wrong and usually leads to long-term failure. So let's start trading the right way, namely using Analysis.

Part 1 - Introduction Stage
Analysis of price movements is divided into 2 namely Technical Analysis and Fundamental Analysis.

Technical analysis is a way to determine where prices move by using available tools and indicators such as the RSI Indicator, Japanese candle charts, Price Action.

Fundamental analysis is a way to determine where prices will move using market economic news, for example GDP releases, inflation figures and other news releases.

Then the question arises, where should I start? What analysis should I use?

So for trading binary options whose closing time is under 5 minutes it is recommended to use Technical Analysis only (Indicators and Graphs) whereas if trading above 5 minutes must include Fundametal Analysis.

Technical Analysis
This technical analysis is very much, because there are many indicators available. Therefore I will only explain how to use effective indicators in binary option trading.

The way the indicator works is simple, using past data to predict price movements. You are some Indicators that we will study.

  • RSI
  • Japanese candles
  • High School (Average Pergerakah)
  • Bollinger Bands (crosses)
  • Fundamental Analysis

This fundamental analysis is easier to use than technical analysis, it's just that fundamental analysis is suitable for trading with a closing time above 5 minutes.

How to use it is also easy, we only need to see the results of a country's economic data release, if the results are above expectations then the currency will tend to rise, conversely if the results are below expectations then the country's currency tends to decrease.

As an example:

At 10 am, inflation figures will be released in the United States (US) and market participants forecast (inflation) that inflation will remain at the level of 0.25%. Then we wait until 10 am. later if it turns out that inflation rises above 0.25% then the USD will automatically strengthen, then we will put down (PUT) EUR / USD, and vice versa.

Also Read : How to Average True Range (ATR) Helps Increase Profit