› Continuation of the Ascent Binary Options - How It Works

Continuation of the Ascent Binary Options - How It Works

Binary options trading has won the heart of many traders within a short period of time. In the past, people used to trade the stock market but over the period of time, the retail traders have gained access to varieties of profit making system. Binary options trading is one the most popular one for the short term traders. Different brokers offer different profit making opportunities to the traders. But to trade options market one be extremely knowledgeable and also should a solid trading system.
As this market evolved the experts have created new strategies to adapt themselves to market dynamics. If you are new to this market then you must not trade with real money. Most of the retail traders don't understand the associated risk factors in trading.

They simply consider options trading industry as a get rich quick project and thus they trade with wild assumptions.

Example of options trading system

The tradition trading system doesn’t work well in the binary options trading world. Most of the time the long term traders trade the forex market. But when it comes to option trading its day trader or the scalpers dominating the market. Much experienced professional use the 100 days SMA to trade touch option with a great level of precision.

Continuation of the Ascent Binary Options - How It Works

Figure: the 100 SMA in the minute chart acting as price magnet

From the above figure, you can clearly see that the price has a tendency to stick the 100 SMA in the 15-minute chart. The professional traders execute touch option when the price comes close to the 100 SMA. Most of the time, if the price gap between the 100 SMA and market price level is less than 30- 25 pips, the expert assume that the price will touch that certain level. The 100 SMA also acts as the dynamic support and resistance level and many professional traders often set the call and put option by using the dynamic support and resistance level.

If you like this strategy, you might also be interested in this Bullish Engulfing
The 100 SMA can be used in a number of different ways and it totally depends upon the options traders. Some professional traders often use the price action confirmation signal to trade the options market using the 100 SMA. But when you use the price action confirmation signal make sure that you are using the higher time frame like 1 hour or 30 minutes. So see the option expiry time before you trade with price action confirmation signal.

News trading is also very much popular among the options traders. But when it comes to news trading most of the expert traders use the Bollinger band indicator in their trading chart. While the professional trades in favor of the trend the novice traders against the trend and losses money. So make sure that you are always trading in favor of the trend to reduce the risk exposure in trading. The best way to trade options market during the extreme level of volatility is by using the 1-minute time frame and price action confirmation signal. Wait patiently for the price action candle stick pattern in the 1 minute time frame and trade the options market with 60-second expiry.

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