Trade price action with binary options 2020 - use knowledge now

Trade price action with binary options 2020: trade intuitively & be successful?. Clarify test & experiences. Use knowledge for trading.

Market technology is an aid for traders, and it has been shown time and again that it is indispensable in this fast-moving time. This is particularly evident in liquid assets such as currencies and indices. Every dealer sees the actual technical setup; what the individual makes of it, however, is usually an individual ability, which is based on completely different characteristics such as the willingness to take risks, the ability to observe and experience.

And this is where the market technology should not only be understood as a technical analysis, but as a representation of market dynamics, i.e. price action. The purely technical setup does not give the trader an advantage over other traders. This only arises when the trader plays out his individual characteristics - and these must first be trained.

Learn to understand the price action

Trading via the price action is a trade that is very intuitive can take place because the dynamics of the market can usually be learned through observation. If traders have seen certain movements often, it's like a setup is repeating itself. In addition to the well-known technical models, price action can particularly show its strengths when there are certain changes in the market environment.

What can price action trading look like? If you look at the DAX future for the past two months, for example, it becomes clear from the pure market technology that, before the bullish flag broke out, there was uncertainty as to whether it was going towards 11,000 points or not.

The index had formed an SKS formation in both directions. In part, the price action can also be identified by mere analysis. The circled candle gavel, which signaled keen interest in buying, only occurred in one direction. In contrast, sales were initiated less dynamically. This is an indication that there was no sales interest, but only less liquidity in the market than the prices stagnated.

An experienced trader could have recognized early on just from the market dynamics whether there was more buying interest than selling interest, because the dynamics represent different market participants. With the help of the many candle hammer he would be confirmed in his assumption.

The advantage with such tactics is obvious: While a trader acting according to pure and rigid market technology may only be if the flag had been broken, the other would have entered the area of ​​the second hammer. He would have been "in the money" for a long time or could draw his stop loss into the positive zone.

Trade price action with binary options 2020 - use knowledge now

Conclusion

The price action is a very helpful tool in the short- to medium-term trading. The courses of motion of the courses can be repeated just as often as simple technical patterns. In combination, the trader can achieve enormous advantages. However, taking advantage of price action requires experience and is based on individual characteristics, such as quick decision-making when a possible setup arises.

It follows that reversals can be identified early using price action. Market exaggerations are also often indicated by price action. Most of the times, after exaggerations, correct the courses very strongly down to the starting level. This is particularly evident in the case of gaps. The most recent example: EUR / USD after one of the FOMC meetings that disappointed market participants. Shortly thereafter, the price corrected even lower than the starting level.

It is therefore always a good idea to deal with the dynamics of the markets or to observe them when the time permits. Because the dynamics of the market can warn of changes in the market environment earlier than the pure static chart technology, which only shows past prices.

It is not for nothing that professional traders say that the best trades are intuitive. By this they mean that technical setups are used, but there is also a certain additional factor - and this is individual. However, this in turn means that traders need real-time prices.

The broker OptionTime offers real-time prices for trading via its platform. If these are not sufficient, there are various chart tools on the net that provide real-time courses that are always sufficient for observation and learning.

Trade price action with binary options 2020 - use knowledge now

How to trade binary options using price action

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