The trend is your friend, this old stock market is followed by investors who rely on the trend strategy I check that for binary options. They usually first determine the emerging trend with the help of charttools and then follow this trend with put and call options. In this case, one also speaks of the trend-following strategy. However, the investor also has the option of acting against the trend with binary options. Investors choose this option when first the full report a trend is very mature and has a great potential to reverse the trend.
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Investors who rely on trend strategies are basically hoping that the trend that is currently developing is continuing. It therefore buys binary options which correspond to the trend direction. In the event of rising trends, it therefore chooses call options, while the investor chooses a put option in the case of falling trends.
There are basically no limits to a trend. The price of a value or market can increase almost indefinitely, but also source know fall as well as completely. It is therefore important for the investor to follow the course of the course as well as to keep important economic data in mind. If the investor wants to use commodity options, he should also monitor the political world. The reason: Numerous important raw materials are promoted in politically rather troubled regions of the world. A sudden overthrow or even a civil war can have a massive impact on the development of the corresponding trend.
However, this constant observation is also important in view of the fact that even established original site on trends can always lead to a setback. However, these must be properly interpreted so that the investor can make the right decision accordingly. For example, if the trend is going in the same direction for several days, the purchase of the backers is worth the mark or the fundamental data - for example, the general market environment - make the trend continue.
Looking at the right timeframe
Investors pursuing a trend strategy should also pay attention to using binary options whose timing is consistent with the trend they are pursuing. While trends based on day tickets can be binary options that have a 24-hour timeframe, either a website link most minute or a five-minute cycle should be used for 60-second options.
In the case of the trend-following strategy, investors are eager to opt for hours as a justifiable timeframe, for which numerous options are also available. For many values, a trend pattern can be seen very well in this time frame. These values include, but are not limited to, precious metals such as gold and silver, but who visit this link also many currency pairs. However, investors should consider long-term speculation with binary options on the stock market, as the DAX often develops sideways during the day's business. Trends are usually developing in a period of one to three months.
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And if the trend reverses?
If a trend has been established for days or weeks, a trend reversal is formally in the air for many investors. In the context of the trend strategy, the decisive question for them is when because read full article first the full report the best time for counter-trend trading is. This may be wrong when it comes to trading forex trading or betting with CFDs.
A safer alternative is a solid trend strategy with binary options. Because when a trend has a high potential for a trend reversal can be seen by various indicators - most often:
- The value reaches new highs with low volume
- There are divergences between price and indicators. This means that while the price reaches a new high, the indicator is not