Category: Strategy

Relative Strength Indicator (RSI) and Binary Options

The Relative strength indicator (RSI) is an indicator used by technical analyst to determine if an asset is over bought or oversold, but it also can be used as a divergence indicator when trading binary options.  The RSI can be used alone, or in conjunction with other indicators to...

Volume

Volume, which is a measure of supply and demand, and is independent of price action, can be used as an indicator to assist in the trading of binary options.  Traders historically have used volume as a secondary indicator to determine the strength of price direction or the confirmation of...

Paper Trading

Many traders go through the process of designing a trading strategy or investor approach, and end their apprenticeship without fully testing their strategy.  The key to successful trading is to continue to hone your approach until you are able to work out all of the kinks. The best was...

Fundamental Releases and Binary Options

Fundamental data releases represent excellent opportunities to use binary options to generate excellent returns.  The reason the returns are more prolific after a release of economic data is that the market generally gaps or moves quickly in one direction after a new piece of news is received by the...

Trading Binary Options using the Bollinger Band Strategy

The Bollinger band strategy is one of the best strategies to use when trading binary options, because it creates clear signals that can be used to buy and sell the market in the form of above or below options. Range binary options and one touch options can also be used to...

Hedging with Binary Options

For a currency day trader, not only do binary options give you the opportunity to make a great deal of money with a small move in the market, but they also give a trader an instrument to hedge currency positions....

Moving Average Crossover Strategy

As with many techniques, the simple ones sometimes are the best ones.  The 5 period 20 period moving average crossover, seems to be one of the most efficient tools to use when trading binary options....

Linear Regression Channels

The linear regression channel, similar to the Bollinger Bands, is a technical analysis tool that can be used to trade the binary options market.  The linear regression channel is a statistical technical analysis tool that captures the recent ranges and creates a statistical boundary where prices are likely to trade over...

Open Interest and Binary Options Trading

Binary options can be used to create profitable strategies, and there is a lot of information available that an investor can use to determine if the price of an option will move in the near term.  One very effective way to profit from specific information is to analyze the volume...

Back Testing

Traders and investors use numerous tools to determine the future director of financial markets.  These tools range from fundamental analysis, where economic, earnings or monetary data which change the current environment, to technical or statistical analysis.  When you are using different tools, many wonder how to gauge the effectiveness...