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Technical and fundamental analysis - what to choose for trading binary options
Most traders who have extensive experience trading options, will sooner or later face a situation when long tested and reliable trading strategy stops working. Quotes, despite the seemingly iron signals, starting a movement completely opposite to the forecast system, without paying attention to support and resistance, trend channels.
Conversely, traders who trade on the news, see a situation in which, despite the news that came out better than the previous forecast, price, leaning against the invisible barrier begins its movement in the opposite direction from their expectations. All these factors, undoubtedly, as a result bring losses to both categories of traders. What's the problem?
The problem lies in the fact that fundamental analysis without technical analysis, and Vice versa, is not working! If to speak simply, is there are moments when, for example, published the news about the unemployment rate in the US data which is much worse than the previous forecast. The price of the asset will decline as a result and investors will not pay any attention to various technical levels on the chart.
They have their volumes of contracts pierce any support, as a result, traders who use to trade technical analysis and execute trades from support levels, will receive damages.
And along with this, reverse the situation. A trader, considering the news that came in better than forecast, put on the rising asset. But, at the same time, the market is the level at which the concentrated positions of the largest players in the market. It is not beneficial to the price of the asset increased, and they received a loss. And, as a consequence, the price is set at this level, and news strategy brings losses.
What to do?
The solution to this situation is simple enough! When trading the news you must consider the indicators of technical analysis of the market situation, and the use in trading technical analysis, to take into account the news background on the market of the underlying asset and monitor the release of the most important macroeconomic news.
It is for this reason most broker companies on their analytical sections of the sites are placed both ways of analyzing the market:
• Fundamental review of the news;
• Technical analysis.
One of the simplest examples, the brokerage company importantly, the company, in the analytical section of the website You will find:
• Daily fundamental analysis macroeconomic news;
• Analyze price dynamics of underlying assets.
Fundamental analysis conducted by specialists importantly, the company enables to understand the overall trends that prevail in the market (they are oriented large investors), with the help of which you can quite accurately predict the overall direction of the market:
Technical analysis points to more specific levels of concentration of interests of the majority of traders. And, thereby, indicates the level of the market where with a high probability of a reversal of the trend of quotations of the asset:
Based on this, it would be better to use a set of indicators of technical and fundamental analyses for making decisions on trading positions, than to bite your elbows from the resulting financial losses, conceding the publication of important news not taking into account when trading in a strong resistance level.
Customers importantly, the company that is used to options trading both methods of analysis of the market, which are placed in the analytical section of the broker, get paid many times more profit, in contrast to the traders who do not use such a system analysis.
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| Category: Binary options | Added by: (07.11.2017)
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| Views: 376
| Rating: 0.0/0 |
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