Understand trends – professional approach
“The trend is your friend “, this is the slogan of the transaction is often referred to . Many binary options trading strategies revolve around understanding trends and expand. Of course , the market is unstable , there is always the end of the trend . So, when the trend to an end , you should do ?
Is essential to know when to enter the market , but at the right time to exit the market is equally important. For binary options, know when to exit the market is relatively easy , because binary options expiration date is fixed. However, following the trend , how do you know whether this trend will continue until the option expires ? Whether it should use the next trend , switched to another option ?
The following figure as an example :
It clearly shows a rising trend , but it is not always increased , but in the process of decline slightly different interrupt occurs , it is corrected each market phenomenon will occur . The difficulty is that , when there is decreased , the difference whether it is consolidation , or the chart at the end of the performance completely reversed. For binary options , this is particularly important , because if the upward trend in the market have learned that nobody wants to come down stumbled .
Of course , the future can not be predicted , but investors can use some tools to determine whether the reversal will occur .
You can get some help in the following figure .
From the chart, you can learn about the strength of the trend , and the trend when it will be failure. Judgment assets suffered reversals common indicators are: downward trend is more robust than the upward momentum . This model is called ” gobbles type”, ” bull devoured ” means assets will begin to rise, “bear devoured ” means assets will decline. This is the most convenient way to observe the histogram or bar chart , you can also graph keenly observe this information. Let us return to the chart : To observe the assets each fall down before rising cylindrical cylindrical than shorter ( in other words, in the same period , the decrease is less than its rise ) .
However, after a reversal in the trend , falling cylindrical longer than before , indicating a greater decline . Remember, this will not always happen, but it can help you predict when the market will be changed dramatically , and help you to avoid adverse situations , but also conducive to quickly grasp new market trend