Among the existing types of trading on Pocket Option , trading using technical analysis tools is more popular among beginners than fundamental ones. This is due to the specifics of the latter. To trade binary options on Poketoption using fundamental analysis, you need to constantly monitor financial and other news, as well as navigate economic indicators. Working with technical tools is easier and more accessible. Moreover, most of them are built into the Pocket Option broker terminal by default.
About the trend and rules for constructing technical lines
To understand the essence of a trend, you need to take into account that the price of each financial asset is in constant motion. On the chart, this manifests itself in the form of candles that open in one direction or the other, depending on the levels of supply and demand. Based on the above, we can distinguish three types of trends (or three directions of price movement):
- upward, in which demand exceeds supply;
- downward, when there are more offers to sell than demand to buy;
- sideways (flat), in which the volume of assets offered for sale is approximately comparable to the number of requests for it.
The technical lines of indicators built into the Pocket Option broker terminal help determine the direction of the current trend. You can find these tools in the “Constructions” section.
On the chart, the trend is shown as two lines: support and resistance. The latter are built in accordance with the following rules:
- The support line is located below the price chart. To construct it, it is necessary to identify two minima and draw a straight line through these points. This line goes up. Therefore, the second minimum must be higher than the first.
- The resistance line is located above the price chart. To build it, it is enough to find two maxima and draw a straight line through them. This line is directed downwards. In this regard, the second point on the chart should be lower than the previous one.
In order to set these technical lines, you need to go to the “Constructions” section in the Pocket Option broker’s terminal, select “Trend lines” and, moving the straight data along the chart, set them to the corresponding points.
How to trade binary options using technical lines in Pocket Option
Before you start trading on Pocket Option using straight lines, you need to take into account that in an uptrend the main line is the support line, and in a downtrend it is the resistance line.
Acting within the framework of the strategy under consideration, it is necessary to buy a Call option if the price has bounced off the support line and continues to move up.
Orders for Put options must be placed in the opposite situation. Transactions in this case are opened if, during a downward trend, the price chart bounces off the resistance line and continues to move down.
The expiration period in the examples considered should be equal to the period of formation of two candles. Moreover, you can trade within this strategy on any timeframe. The described system is suitable for any type of trading, including long-term.
Also, do not forget that you can start trading with additional funds by using promo codes for replenishing your account from the Pocket Option broker, and to improve your performance with this strategy, you can use a promo code to cancel a losing trade for $10 .
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See also:
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