Each candle has two wicks . Wicks represent the fluctuation of price, meaning how high or low in the given timeframe the price has gotten, but did not stay there. The wicks are represented by a line, where as the candle body itself looks like a rectangle.

Therefore if we see a bullish candle, the price is rising / increases and vice versa. Candles are divided into two types – BULLISH (rising) and BEARISH (falling) . The size of the candle shows us where the price started and where it evolved.

One very common approach to forex trading is following the trend. However, it may take you a formidable amount of time and effort to understand the trading market at first. It is a strategy that will always be the go-to plan for many traders. One benefit of using this strategy is that you can adapt it to other long-term and complex plans in the future.

binary options, even with a live account, gives you the opportunity to put in more trades with limited risk, so that even newbies can learn and get better with time. If you do lose, you always have a next time where you can go back into the market after sharpening your skills. This does not happen with binary options as you either win or lose. Good traders would tell you that the more trades you put on, binary option trading the more you learn and the better you get at it.

Let’s say you are long on the euro in the spot market and the price is falling or you are not sure of the trade. The binary options trade can be used to hedge your trade in the spot market. The biggest, yet untapped, use of a binary options trade is in hedging.

The distance separating the highest price and closing price of a bullish candlestick is known as the ‘wick’. In addition, the distance separating the lowest value and opening value is referred to as the ‘tail’.

You predict whether the price of the underlying asset will be higher or lower when the option expires. The simplest type are up or binary option robot down options (also known as call/put options and high/low options). Let’s begin with a quick recap of the various types of binaries you can trade to make money.

This individual looks at trading binaries as a method to "juice up" the return on his investment portfolio. If someone were to ask him about the things he invests in, he might respond, "IBM, Google, muni bonds, and some binary options trading." Investors often fail to realize the high degree of risk they assume as they chase the high returns advertised by binary options brokers. In the second category we find The Investor.

That’s not something you want to do when trading binary options, though. When trading binary option signals options we will probably use mostly the first three. The most common choices for binary options traders are 1 minute, 5 minutes, 15 minutes and 1 hour timeframes. For each graph, binary option we can choose so called timeframe, which is just an option of how large period of time one candle represents. Other than that, people also use 4 hour, 1 day, 1 week and a 1 month timeframes.

This removes the emotional factor behind trading which is what most traders suffer from. Another advantage of binary options, that you as a trader should see, is the fact that irrespective of whether the trade moves against you by 100 pips or more, the amount that you lose per trade remains the same and under your control.

This is because many experienced investors currently deploy a thorough grasp of candlestick concepts to boost their profits and success. Candlesticks can generate important insights into prevailing trading conditions because each one displays a unique interpretation about how the price of an asset performed over a selected time period.

Nowadays I profitably trade binary options full-time and what is a binary option thus gladly share my experiences with you. I've wanted to build a business of some kind and earn money since I was in middle school. More posts by this author. I wasn't very successful though until my senior year in highschool, when I finally started to think about doing online business.

It’s just a simple line that goes up and down depending on the price movements. If you do not know what I am talking about, read on! Candle graph looks differently, but it shows us the same thing, and even more. In addition to opening and closing price each time period, the candle graph shows us also the fluctuation of the price, meaning how much the price has risen or fell during the specified time period (called a timeframe). Surely we all know what a line graph looks like.

Alternatively, a bearish candlestick is formed whenever the opening price is above the closing value. The distance separating the closing and what is a binary option opening values is defined as the ‘body’. When the closing value is higher than the opening price, then the candlestick is bullish and its body normally has a white color. Each candlestick is represented by 4 price points: closing, highest, opening and lowest prices.

This removes the emotional factor behind trading which is what most traders suffer from. Another advantage of binary options, that you as a trader should see, is the fact that irrespective of whether the trade moves against you by 100 pips or more, the amount that you lose per trade remains the same and under your control.