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If you have been trading, you will know that the market is always moving in the form of waves. However most traders do not know how the waves is actually formed. So I will like to use this post to illustrate to you guys the formation of the waves as it will be very useful for your trading. The waves are the results of repulsion against levels of support and resistance. So What are those Support and Resistance. There are various types of support and resistance and I am going to highlight them one by one in this post.

However I will write a detail blog post on each type of support and resistance binary option indicator in my other post as it will be too lengthy. Personally I find these 5 types of support and resistance levels the most effective. Whenever the price hits these levels for the first time, it will be repelled by it. Whenever the price breaks through the level, it will form a new level of support and resistance.

For example, when you see the price breaking a level of support, the old support will now turn into a new resistance. Now that you know where are those levels of strong support and resistance, you will be able to wait for the price to hit those levels for the first time and then enter a binary trade based on the repulsion. Note that there will be more risks when the price hits the same level again as there are chance where the price will break through it.

Therefore I will suggest that you only trade the repulsion based on the first repulsion. However in order to increase your probability of winning, you will need to make use of other indicators and techniques to do so. Therefore I will suggest that you read my blog post support and resistance lines when trading binary options 4 top tips How to formulate your own binary option strategy to formulate your own strategy.

A personal advice for those of you who are still trading without a binary option strategyyou are going to lose all your money in no time. There is no way anyone can make money from trading binary without a proven strategy. I hope that you guys find this post useful and if you have any question regarding binary trading, do feel free to contact me via the link at the side of this blog. For those of you who are interested to learn the binary option strategy that works for me, please click on the link below for more information about my course.

Binary Options Strategy Binary Option Signal Learn various binary options strategy from the binary options signal blog created by a real trader who has been trading profitably since So What are those Support and Resistance There are various types of support and resistance and I am going to highlight them one by one in this post.

Support and resistance lines when trading binary options 4 top tips Option Course By Me. Who Is KH Lee?

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How to be successful when doing binary trading options top 7 binary options trading tips

In binary options trading, if a trader is able to make the right decisions about the likely direction of price changes of financial assets, his success is guaranteed. Success also heavy depends on your broker — you need to trade on a stable platform with no delay in entry so that you can easy control the strike price. The Breakout trading strategy is very popular, many traders consider it one of the best.

To achieve the goal, the trader must predict price level breakdowns. This is the essence of this strategy. Firstly, you need to find out what the price movement determines. All market participants seek to make a profit. If they understand that such an opportunity exists, they will rush to invest in the market. In this case, the price will move in one direction or another.

If nothing spur traders to trade, market activity drops, and the price will not move at all. When trading binary options, the trader can make money even when the price of the underlying asset is not changing at all. This is not possible on other markets, in particular — Forex. Price movement should exist if the trader wants to make a profit in the foreign exchange market. If the market is inactive for some time, the case of breakdown that occurs during the news may change the value of the underlying asset.

Traders seek to make profit and select a position. This situation can be determined in the following manner — in order to analyze how price behaves at key levels of support and resistance. Before the price breaking up, the price can test the resistance levels at this point and kickback points will approach the level of resistance. As a result, we can assume that the cost increases by traders. If this happens, it means that soon we can expect the breakup.

The same situation with breakdown - the levels are constantly testing, kickback points are lowering. Before the price breaks the level, it can test the resistance level at this point several times with kickbacks each time getting closer to it.

This situation indicates that buyers always raise the price. When we see this, it will be a signal to the fact that the breakdown of the resistance happened. Break of the support level are similar. Support levels will be tested repeatedly, and the point of rollback becomes lower and lower, indicating the pressure of bears. In such cases, the pressure of sellers or buyers can be so strong that the prices just break through key levels and continue moving toward breakdown without stopping.

Binary option trading price during the breakdown is very simple. That is why, it is used by a large number of traders. In this strategy, the most important thing is to know how to build support and resistance levels.

It is desirable to apply this strategy on a clear trend. Traders can buy Put option in the case of support line breakdown and Call option in the case of resistance line breakup. Skip to main content. Simple binary strategy using breakout of support and resistance You are here Home. Binary options trading advantages on the market All market participants seek to make a profit.

How price behaves at key levels of support and resistance If the market is inactive for some time, the case of breakdown that occurs during the news may change the value of the underlying asset. How we trade on a break of support and resistance levels Before the price breaks the level, it can test the resistance level at this point several times with kickbacks each time getting closer to it.