Binary Options: Trading Patterns / Strategies

Binary options may be simple to understand, but it is not efficient to get started without knowing a minimum of strategies. We are talking here about basic strategies, which do not necessarily involve the use of indicators or software to predict market behavior. We tell you what you need to know about it. But before going further, be aware that brokers will offer you ready-made strategies. According to the advice of fr.meteofinanza.com the ideal would be that you establish your own.

Some Basic Binary Option Strategies

Strategy by trend : as a reminder, the basic principle of binary options is to bet on the rise or fall of an asset. So, as a trader, you have an obligation to learn to read charts in order to anticipate a short term. Therefore, a trend-based strategy is knowing when to take the “Call” option which portends an uptrend, or the “Put” option which portends a downtrend. Remember therefore that a strategy based on the trend implies a correct analysis of the charts.

The top/bottom method : it is also called strategy above/below. This strategy can be used in two different ways. First, the trader chooses an underlying uptrend of an asset and bets on it. To do this, he will opt for the so-called “bullish strategy” formula. Since it is an uptrend, it only wins if the price eventually rises. Secondly, the trader will opt for the so-called “bearish strategy” formula. This is somewhat the opposite of the previous strategy. Here, it is a question of betting on the fall in the price of the asset. If the prediction is correct the trader wins, but otherwise he loses his entire investment.

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The so-called trading zone strategy : you should know about it that it is adapted to the volatile market. Thus, due to this constant unpredictability, the trader is called upon to define an underlying zone in which the price of the asset will move up or down.

The so-called Trading range strategy : to put it simply, this strategy is the combination of two others. First the trader consults the available statistics in order to predict the price of the assets. This is called fundamental market analysis. Then, he will define a trading zone in which he will apply the data deduced from his analyses. There are two options: “in” or “out”.

Taking into account the opinion of other traders : This is a fairly simple process, but requires a bit of care. We explain to you: when you choose a broker, it provides you with tools that you can use to follow other traders, especially the most experienced. So you can rely on their advice to proceed with your investments. On the other hand, we advise you to check that 70% of traders are at least of the same opinion before proceeding.

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