Individual shares 2018: Range trading of shares with volume

Individual shares with range options 2020: range trading of shares with volume? Here are tips & tricks. Open a broker account now & use your knowledge.

Most binary options brokers try to offer as many assets as possible for trading. As a rule, the values ​​are the most liquid. This is relevant due to security reasons. Therefore providers offer not only indices and raw materials, but also liquid stocks.

Nevertheless, stocks, even if only liquid stocks are usually offered, are not as liquid as indices or the North American crude oil type WTI, for example. This requires a rethinking of trading, especially since individual values ​​are not based on futures prices, as is the case with indices, but the normal trading hours apply here.

What other properties do individual values ​​have?

Da Because stocks are less liquid due to limited volume trading, it is all the more important to make sure that you find the right entries. In addition, stocks can lose or gain a lot more in one fell swoop than, for example, liquid indices or currency pairs. While a recovery of 5% is already a high proportion in the DAX, stocks with a price drop of more than 10% are not uncommon within a few days.

On the other hand, trends in stocks can often be better anticipated and market technology zones more reliable than, for example, in the case of stocks currencies. It always depends on which investors dominate the share price. If the majority of investors act automatically, market-technical zones are often used for entry or sales. You can tell that from clean trends. It is therefore recommended to look for such shares in individual stocks.

Nevertheless, individual stocks are very vulnerable due to new technology. While global news can reverse the trend in currencies and indices, in-house news is enough for stocks to fall within a few minutes. In addition to market technology, professionals therefore study very precisely which stocks might be vulnerable and when.

Individual shares 2018: Range trading of shares with volume

Range trading of stocks with volume?

Precisely because stocks are less liquid, market engineering patterns can be traded well because trends or sideways phases are more pronounced. In addition, indicators such as volume can provide better signals, since the volume is very volatile with very liquid stocks and the signals become less reliable.

In range trading, the following rules can be set up:

  1. A sideways phase was confirmed by at least two support / resistance points.
  2. If resistance is confirmed, put options are bought on the third confirmation if the volume on the seller side increases.
  3. Becomes support confirmed, you buy call options when the volume on the buyer side increases.

What is special about this trading technique is the fact that in addition to range trading, you can also use a break- Out speculate. The only difference is that you buy options earlier and find yourself "in the money" very quickly, provided the price rises or falls in the planned direction.

Since binary options have a limited term and If this is usually not very long, break-out trading can make sense. The advantage of break-out trading is the fact that break-outs are usually accompanied by a volatile push, so the chances are good with the option to land "in the money".

Who it is may be a little more risky, skips the volume and fully speculates on keeping the range limit, because the volume is not always meaningful enough.

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conclusion

In summary, one can say Trading individual values ​​has the following advantages:

  • From a market perspective, more reliable setups
  • the volume can be better interpreted
  • more choice when looking for setups

The following disadvantages are offered by trading single values ​​

  • Less liquid and limited trading hours
  • Relatively speaking, very strong movements (can also be an advantage)
  • Internal News can pose increased risk

Every value has its advantages and disadvantages. The biggest advantages of stocks are the large selection, with which one can find many setups, and the increased reliability of the market technology. However, this does not apply to all individual values ​​and it is up to the trader to find them themselves. A major disadvantage is the vulnerability to internal company messages, which can only be predicted very vaguely or not at all.

Individual shares 2018: Range trading of shares with volume

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