How to technical analysis trading binary option?

IQ Option Technical Analysis : The Ultimate Tool

One of the most crucial features IQ Option provides to traders is a chance to stick markers and symbols for an online diagram. That will put in quite simply — a chance to use technical analysis.

Web-based binary option platforms are rarely designed with drawing tools and — much more rarely — with built-in indicators.

The availability of technical analysis tools makes IQ Option extremely functional. Still and all, what’s the actual benefit of that graphics and what’s the point of by using the drawing board and indicators inside the daily routine?

The Importance of Drawing

The drawing board is definitely an essential technical analysis tool. Above all, this is a result of the undeniable fact that many trading systems and a big quantity of strategies are made to think that traders depend on some elements from the diagram—for example, the support and resistance lines.

Every trader chooses the lines and shapes he needs, along with the timeframe to the confident people, by himself. For that reason, it is very useful to plot markers on the diagram.

There are a lot of ways to make use of such markers. In fact, the most typical usually is to get them to display trends. Trend is it is important in options trading, and it's of valuable importance to track trends.

The usage of the drawing board like a tool for creating graphical analysis markers and finding chart patterns— Diamond, Triangle, Three Peaks, Head & Shoulders, etc. — could be equally effective.

For instance, the diagram shows that the Three Peaks pattern is generating, but to know the entry point, i. e. the support line breakthrough point, Isn't a simple thing to carry out by sight. 

You are able to keep an eye on the correctness from the figure generating process and obtain a clear and understandable entry point only through the use of graphics.

The tools can be utilized not just to labor with graphic strategies and simple patterns which are generated upon the diagram. They may also be used along side indicators which are present upon the platform.

Technical Analysis Indicators

It ought to be noted the platform is designed with four widely spread indicators — Bollinger bands, moving averages, RSI (Relative Strength Index), and Alligator. All them can be utilized both individually and jointly. Indicators help traders forecast the direction of price movement correctly.

1.Bollinger Bands

Bollinger bands is probably the most popular indicators. Depending on data coming from the moving average and standard deviations, it creates a corridor within which the value moves.

 Focusing upon the corridor borders, we calculate signals to the entry. If the value breaks the lower limit, we should buy CALL options, if this breaks the highest limit—PUT options are the best choice.

More strategy: Bollinger Bands alert indicator

2.Moving Averages

Moving averages show the typical asset price with different predetermined time interval—for example, 14 days.

When the diagram crosses the moving average, it's a signal to purchase options inside the direction from the breakthrough. The longer time interval is, the greater accurate will be the signals. However, their number also will decrease.

More strategy: Best Moving Average cross alert indicator

3.RSI

Relative Strength Index (also referred to as RSI) is merely available when dealing with candlestick charts.

This indicator is likewise extremely popular and it is probably the most widely used globally. It reflects both the strength and also the magnitude of price changes. Unlike other indicators, RSI Isn't displayed upon the chart in a form but is built inside a separate window just below the chart. Lots of different strategies are depending on this indicator.

RSI shows asset overbought or oversold levels depending on historical data. When the asset is overbought, we should buy PUT options, if it's oversold—CALL options tend to be more preferable.

4.Alligator

Alligator is extremely competitive using the previous indicators when it comes to popularity. It's presented as three moving averages of three different periods. Once the lines cross, it indicates the trend is going to begin.

 Once all three lines start pointing in one direction, the tendancy begins. After that, we should follow the tendancy. Numerous profitable and simple strategies which have been successfully utilized by traders worldwide are depending on Alligator.

Using technical analysis indicators helps not just get completely understandable analysis data, but additionally unsophisticated and clear entry and exit points. 

Moreover, because of Alligator the trader can fully track all opportunities, like the proper analysis of the value movement requires not just the information that an indicator itself can offer.

Quite often, for instance when utilizing Bollinger Bands, traders use support and resistance lines to obtain a correct and clear signal to enter. They minimize the risks faced by traders. It ought to be noted that it must be almost impossible to operate such lines with no drawing board.
 

The usage of both indicators and a number of graphics upon the IQ Option platform Isn't limited. You are able to put all necessary markers and indicators on a single diagram in order to make your technical analysis much more efficient.

The IQ Option UK can offer significant assistance to traders because it contains all of the tools required for the right technical analysis.

•  More strategy : Alligator indicator formula

It enables users to recognize entry and exit points a lot more effectively, also to research the diagram and also to significantly decrease the risks. You are able to make more income by combining indicators and diagrams to filter the received signals with different tools.

It is very important note that drawing tools cannot only support us when dealing with certain indicator-based strategies, but additionally function a basis for profitable strategies. Also, they are incredibly helpful for hedging and dealing with patterns — all of this helps make the IQ Option drawing panel useful and essential for traders.

 Trading by using indicators and graphics can ensure a normal income.

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