Charts and Binary Options
Whether you are trading in binary options, on the currency market or even trying to choose the right stocks and shares to purchase; you will need to understand the charts you are looking at. Understanding what information is being portrayed and how it can affect your buying decisions is an essential part of trading. If you do not understand the subject of your trade and how the market is moving - you will find it extremely difficult and probably impossible to place successful trades in the long term.
Charts do more than just provide you with information regarding how an asset has performed; the history of any asset can help you to establish what it is likely to do in the future. However, to get a really accurate picture you must also take economic news into consideration: when all facts are merged onto one or several charts you will be able to place the right trade; almost every time.
Candlestick Charts
There are actually whole host of different charts which you can access; each one may provide a slightly different set of information. However, what you should really be interested in is the charts which have the most information. Candlestick charts are one of the best options to assist you; in fact these are the preferred option by many traders, simply because of the amount of information which can be squeezed onto one.
A candlestick chart looks just as its name suggests. Generally the main body represents the opening and closing price of a given item of stock for a set period. There are usually two wicks; one top and one button; these show the highest and lowest point that the price of the asset reached during the established period. You can even choose to color the charts; at a glance you will be able to access the current trend and decide in which direction you should be trading.
However, choosing the right chart for your needs is only the first stage of the battle. In order to place a successful trade you must choose the right expiry time. If you like to trade on a short time frame; such as five minutes then the charts you will need to look at should be five minutes or less. The more detail you have on average movements for a specific asset and the market in general, the more likely it is you will place the right trade.
Unfortunately, it is not as simple as just looking at one chart. Whilst the short term chart will reflect the current movement of the chart looking at a slightly bigger picture, say half an hour charts for a five minute trade; will ensure you do not miss any general trends. Armed with all this information you are much more likely to place the right trade.
MetaTrader Software
There are many options when it comes to trading in currency pairs; one of the most popular of all the assets in this type of trading. However, if this is the area you wish to invest in then it would make sense to invest in what is seen as potentially the best software available at this time; Meta Trader.The program works on an MT4 platform and can be downloaded onto your desktop in just a few moments. It will then track the changing prices of assets as they happen. This is an immense benefit as you will be able to track the market in real time; this will ensure all your information is as up to date as possible and may prevent you from making an incorrect trade.
Solution from eSignal
If you are looking to trade something other than currency pairs you will need to consider which other programs can be of benefit to you. The best ones are those which offer real time updates; the closer the information you have in your hand is to the actual market activity the easier you will find it to make the right trades. eSignal is one software provider which currently offers a top end product. It is essential to appreciate how important this type of software is; the faster you make your trades the more you will value the information you can glean from a real time software application.
Other Attention-Worth Topics
Charts are also exceptionally useful for picking up on patterns. When you trade in five minute intervals you may find that there appears to be a repeating trend. If you then study the price movements for a larger time scale, such as the week you may notice a completely different trend. This can be verified by extending the time frame even further. The best way to save the information you are accessing is into a journal of charts. Every chart can be copied and pasted before being easily compared. Not only will this help you to pick up on sudden changes in price and any patterns. It will also provide you with a record of your decisions and why you took them; this is the best way of learning to make better trades in the future.
