In all online markets like Forex, stocks, and product of traders are analyzed by two methods in markets. Moreover, in Binary Options these two methods are useful to use for analyzing the charts. Table of Contents1 Other choices for analyzing and trading in Binary Option2 Important points in technical analyzing2.1 Trading Styles and methods in […]
In all online markets like Forex, stocks, and product of traders are analyzed by two methods in markets. Moreover, in Binary Options these two methods are useful to use for analyzing the charts.
Table of Contents
Other choices for analyzing and trading in Binary Option
- Technical analyzing
- Fundamental analyzing
- A short summary from technical analyzing in financial markets
Technical analysis is based on mathematics, psychological and movement of patterns which has various styles and branches.
This method is useful for any markets and charts which has developed gradually during these years and nowadays has important branches and famous names.
The trading which happens in this market is believed that any data for analyzing is required to be in any prices/money and with the help of the price itself, we can analyze and trade as well.
It is clear that all dynamic factors will trigger decreasing or be increasing the price of stocks or currency like political issues, economic and thought of common people are effective gradually and technical analysis with checking prizes can have all information easily.
Important points in technical analyzing
All traders believe that the history will repeat again. Moreover, all financial patterns and functions which were formal and helpful in the past. Maybe they will be created in the future and will be useful as well.
Trading Styles and methods in tech-analysis
Technical analyzing have different methods which use simple methods or even tough methods for analyzing the prizes.
Here are some popular and important methods which are useful in Binary markets:
Elliot Waves analysis (analyzing charts by Elliot’s method which is really useful
Harmonic patterns (analyzing the charts by Tunable patterns and Certain Fibonacci ratios)
Candle patterns (The analysis of price charts through the decoding candles on every chart)
Support and resistance levels (The analysis of price charts through major support and resistance levels)
A summary of fundamental analysis in financial markets
In a fundamental analysis with checking all factors like economic, political, social and current crisis make an effort to analyze and analysis and valuation of any stock exchange or commodity. The trader in this way by examining factors affecting supply and demand will attempt to predict a future price.
To use fundamental analysis in binary options and forex market, plus political and social situations, you have to know more and also search about the interest rate, trade balance, and unemployment rate. Moreover, you have to know more about the important speeches of the main factors affecting the exchange rate
The notable point to regard to fundamental analysis
A notable point is that both types of traders (fundamental or technical) think there is no need for another analysis and only their analytical style is enough for price prediction.
In fact, using each method has its own advantages and disadvantages, and one thing more important is trader’s viewpoint and interest and he/she should consider which method is more in coordination with him/her
All the traders in fundamental analysis believe that all changes made to the prices are due to one or more fundamental factor, and the trader in this style (regardless of technical analysis) attempts to know these factors and prediction of prices.
As an example, a technical analyzer who trades in a short period, such as 15 minutes, and his or her trading system daily sends buy and sell signals several times, feels no need to follow and consider news and economic factors, because believes all these factors consider the price and the only thing to do is following the written system.
In other words, the trader who wants to trade regularly in Binary Option which fundamental analysis cannot be appropriate. And it needs technical analysis in order to provide him a nice range of time.
On the whole, both analyzing methods are useful in Binary Option. Each person can utilize various methods for trading whether in Binary or Forex. However, our suggestion is to use both of them together so as to have a better vision in all markets.