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Price Trend Strategies By Trade Type

Asset price trends mean different things when being studied for use with different types of binary options trades. It’s actually quite easy to spot a price trend, but knowing the correct actions to take after locating a trend is not always easy. The following fundamental strategies are perfect for beginners and may certainly help experienced traders out as well.

We’ll start off with 30/60/120 second trades since these are so extremely popular. With these trades, swift changes in market sentiment are not going to be your major concern. Instead, you’ll want to spot the trend and then trade right along with it until it comes to an end. With experience, you should be able to spot a price direction reversal in advance. However, as a beginner level binary options trader you can opt to trade with the trend until a loss occurs and then re-evaluate market at that point.

One Touch trades last a week and therefore require a more steady and long-lasting trend. A solid strategy here would be to really study the past price action for your chosen asset in relation to the upcoming trade. What was the highest and lowest realized price? Is the current price anywhere near those? You must be sure that there is the potential for the price of the asset to reach the target price. If the entry price is far apart from the target, the trend is going to have to be quite robust in order for the trade to be profitable.

With No Touch trades you’ll want to avoid a price trend. Stable price movement is needed with these trades, so your task will be to look for any type of data release that could send the price into a trend. Again, do factor in high and low prices for various time frames. Try to determine a median price range. This “happy place” for the price will tell you lots about the range it is most likely to remain in while the trade is live. Should a strong potential for a price trend be noted, avoid No Touch trades or choose a different asset.

Last, but certainly not least, is the basic binary options trade. There are many ways to trade the trend using this type of trade. One simple strategy is to closely monitor market reports. There are a number of events that can send asset prices trending. By taking fast action, you may be able to lock in one or more trades based upon the current price movement. When trading with broker digital options, there will be several expiry selections to choose from. Make this selection based upon your forecast of just how long the trend may last. With stronger sentiment often comes more powerful trends, but even milder sentiment can spark a trend.

There are a number of ways to profit from trading binary options, but price trends present some of the easiest profit opportunities of all. Both trends and the inevitable trend reversal can add plenty of profit to your broker digital options account. It’s wise to stick to the basics at first, but once these are mastered then the sky is the limit for those who wish to trade for profit.


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