The currency pairs that are traded most frequently are referred to as the Majors. All of these have one thing in common, with that being that the USD is part of the pair. These pairs account for around 85% of all daily Forex trading, so you’ll want to have a strong binary options strategy to use when trading them.
When trading currency pairs expect to see brisk price movement. Both components of the pair are going to be battling for the top spot, and this type of movement can be quite profitable for you. The currency of each country is majorly impacted by the condition of the overall economy, politics, central bank rates, and more. When changes occur within a country, currency values typically change too. This is good in that major events can provide you with some excellent binary options trade opportunities.
The above mentioned changes fall into the fundamental analysis category, but technical analysis is needed as well. This type of analysis will help you to identify the prevailing trends. For new traders, a trend is simply price movement in a single direction that continues on for a period of time. When trading with the Majors, consider using support and resistance levels as your guide. These levels represent prospective turning points for asset prices. Resistance is higher than the current price and support will be lower. When the asset price nears either of these levels, a reversal of the direction of the trend is likely.
Most traders choose to use the Meta Trader 4 chart for the purpose of fundamental analysis, but feel free to use any chart that will allow you to sketch support and resistance lines. Since the Majors are in almost constant movement, expect to be presented with plenty of chances to trade binary options throughout the day using currencies. Note also that while watching for the asset price to draw near to either support or resistance, you may find chances to trade with the prevailing trend. When the trend is strong, don’t miss out on such trades.
This strategy is simple enough for novice traders, so long as you’ve mastered the ability to sketch basic support and resistance points. Digital Options will provide you with a live price chart for every asset that can be traded. This chart allows you to review price action over the past 12 hours and can be used to view shorter time-frames as well. Be sure to take a look at how the price has been behaving prior to entering into any binary options trade using the Majors.