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Why not trade in the direction the big guys are going and volumes are the ones to show the direction, right? Binary Options Volume Indicator However, this does not mean we should not trade forex based on the volumes one broker is showing and actually there is even a strategy for that.
One should news from the world of trade on the hourly chart and scroll back in time and look for the last biggest volume candles in both bullish and bearish markets. How to Use Volumes?
Head and Shoulders Pattern Lets set an example in order to visualize this more easily. We have the price aspect, but it cannot tell us if were looking a trend reversal or a random fluctuation at the given time. For a more relevant conclusion, we should look at the volume of the asset for the same day.
As mentioned earlier, this may give an educated guess for the trader that trades with volumes in the sense that it is forming an idea regarding what the market is looking for, but in the end it is only an average. However, it may just be that the trader is closing a short position from way higher levels.
In order to close a position, one has to square it, so when shorting and wanting to book the profits, traders are actually looking at buying the same position. That is the real cause of the spike higher in volume and the trap is being laid down for novice traders.
The indicator for binary options volume A reliable broker, online signals and a robot! Better together than separately! LINK The indicator for binary options volume Volume Speaking of volume indicators for binary options be sure to start with the volume indicator, which is in the English language interface is referred to as Volume. This element refers to the base: a live chart he even is the default indicator, opening immediately when the program starts. It is no coincidence: the indicator is able to improve the strategy of trading binary options - and thus raise the trader profits.
A more exact and clear way to use volumes is to look at the COT Commitment Of Traders that it is released on a scheduled basis and look for orientation.
Adapting the Expiration Date of an Option It is worth mentioning though that long-term positions should be used in the case one is trading the COT reports as there is no straight line as how the market will react and when.
Can volumes be traded using the classical Metatrader trading platform? Yes, they can, and quite successfully.
Share InvestManiacs Volume Based Binary Option Trading One off the most important decisions a binary options trader must make is whether to place a bull or a bear put. Understanding this is an essential part of making the right decision and placing a successful trade. One approach, which will provide an excellent guide as to what the majority of people involved with the market expect to happen, is to look at the volume of a specific asset. This is not the volume of the asset in total; it is the quantity of an asset which is being moved between people. An asset which has one hundred units and ten of them are being traded does not suggest a market which expects something to happen to the value of the asset.
With binary options, considering that kind of trading is a fixed percentage result binary options on volumes this makes missing a trade or two not that important. What a trader should do is to take the volume indicator and plot it under a chart, ideally under the hourly chart. By right clicking on the indicator, levels can be edited and one or two lines can be placed at the medium-high of the spiking candles.
Binary options on volumes With Volumes Whenever a candle is breaking those levels, it should be considered a signal or a striking price when a trade should be placed. With binary options, end of month expiration dates should be always favored when the option is being taken in the second half of the month. By trading with the system mentioned above, the trader is facing a pretty straight-forward situation: it avoids low volumes by setting the standard with the higher level candles and avoids fake signals by choosing a bigger expiration date than normal.
We binary options on volumes not recommend this strategy on bigger time frames than hourly chart as those volumes will indicated more fake moves and signals and the expiration dates are rarely more than the end of the month or one month.