A clear allocation of time is not just one of the main factors in binary options trading, as it is important for determining the expiration date of a binary option, but it is also important for many other things. Looking at time allocation from three different perspectives will help new traders analyze the market and identify potentially lucrative opportunities. And although these simple tips seem too primitive, but if you include them as part of the analysis in binary options trading, it will help many novice traders to develop their own strategy that will help them earn.
Choosing the time of day and active markets for trading binary options
Some binary options markets are open for trading 24 hours a day, 7 days a week, this applies to foreign exchange and commodity markets. Therefore, deciding exactly when to trade becomes somewhat more difficult than in the case of traditional market offers. And for those who have the luxury of choosing when to trade, the dilemma becomes even more difficult, as there is a temptation for such traders to trade even during less profitable opportunities.
The timing of when to trade is often highly dependent on geographical location, but should also be driven by existing market opportunities. It is important to find those markets that in the next moment will offer the most profitable opportunities for the trader, opportunities in the field of reliable earnings on binary options . This will allow you to initially avoid the frustration created by slow and inactive markets, which will lead to sad trading results. Available markets, which are also active, and open during trading – that’s what should be in the spotlight.
Choosing the right time to trade to increase volatility and trading potential
If the working hours of such markets do not coincide with the working hours of local markets, then you should look for which markets are most active in the global aspect, before and after the local trading session.
Time frame and what schemes to analyze
For those traders who are close to technical analysis, the choice of time frame for analyzing the trading settings of binary options can be a kind of headache. Some experts recommend going through several different time frames, and if they are consistent with each other, then, in fact, it happens, several opportunities to look and fall into those time frames. But it is much more important to really determine a certain time period and keep an eye on the two higher time frames in order to avoid trading at a really catastrophic time for trading.
As an example, traders who trade binary options for 60 seconds would be best off looking at the 5-minute span in order to avoid key areas of support and resistance that may not appear in the pattern for 1 minute.
Determining the time of entry in binary options trading
If the expiration time is taken as a decisive time in binary options trading, then the time of a good entry into trading can be called the most important factor. Each trader experienced the feeling that he received a great opportunity to purchase an option at a good price, and this led to a loss or the expiration passed without visible results. There is a technology that helps to improve the time of entry into trades for traders, and this is the search for entry times on higher time frames, as well as marking the entry on a lower chart.
In addition to keeping an eye on more significant time frames to avoid trading in non-profitable times and in non-profitable areas, viewing these charts also provides a great opportunity to participate in the emergence of powerful trends that will dominate smaller time frames in the near future.
Thus, binary options traders can notice the beginning in a longer time frame, and adjust the time of entry into trades using smaller time intervals, respectively. An example of this would be “pin bar” trading, a sample of reverse candlesticks, using a 1-minute chart. If you watch trading on a 1-minute chart, within a 1-hour chart, from the beginning of trading, then the probability of a favorable outcome of your transaction will increase.
Tagged with: Binary Options Academy • Learning how to trade binary
