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Using Binary options charts to analyze the market

 

How do binary options traders make money online using charts and graphs? Well, quite simple to be honest. First, let’s explain what a binary options chart is, A digital option is simply a contract that allows a trader to decide whether a specific asset is going to head higher or lower so that a graph for that asset is nothing different from a chart on that specific asset. In other words, by looking at a graph of Apple (symbol: APPL) for example in a stock trading web site like Yahoo Finance is the same graph a binary options trader would use to analyze the market in real time.

So if a binary options trader wishes to analyze any specific asset he or she would simply use the charts available everywhere on the internet. Obviously there are certain web sites that offer binary options charts for free and others that charge to use their binary options graphs. We highly recommend using free versions as they are more than enough for even an advanced trader to deduce the current situation in any market.

Generally, binary options brokers offer upwards of 200 assets to trade with. These can include stocks from many regions in the world. From the most common stocks, like Google and Apple which are traded in the US, to oil and banking stocks traded on the Tadwul stock exchange in the middle east.

This is where things get more difficult for binary options traders. Finding free charting software that provides graphs on more obscure or less liquid assets can sometimes be quite difficult. But for all stock indices, yahoo finance and other major portals are your answer. For forex, this problem is made even easier to solve as binary options offers forex trading on all the major pairs so charting on these pairs is readily available everywhere.

Commodities are sometimes more complicated to get graphical visualization of markets online. The reason is that commodities are actually traded in futures markets. As such, looking at the price of oil can be difficulty to deduce. The reason is that oil is traded in many places in the world, at different prices. The reason is that there are many types of oil; Brent crude, sweet crude, etc… However, the most widely used form of oil price used worldwide is actually called WTI crude oil. This is the price you see in every news and analysis. That’s why it’s important as a binary trader to make sure you are using the right chart to make your decisions on.

Binary options trading using charts and graphs is critical. Make sure to use a candle chart so that even more information appears on the graph than just a simple line graph. Line charts only plot the open or the close price for the asset. However, using a candle chart will allow the trader to see the High, Low, Open, and Close prices for the individual asset.

Also, make sure to use technical analysis to analyze the market. Tools like the RSI, MACD, Moving Average, Bollinger Bands, and others can be very helpful in decision making while trading binary options. 

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