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When it comes to assets there is really no one class that performs best in the 5 minute time frame although most binary traders prefer forex, commodities and indices, not necessarily in that order. These assets tend to have more day to day action because they are traded globally around the clock and will move up/down within their near term ranges with more conviction than less liquid stocks.

They are vivid and clear, and many traders find them easy to read at a glance. They provide you with a significant amount of information. Candlesticks are tried and true. Seriously, they have been around for binary option centuries. For some traders, bars just do not provide that level of simple visual impact. A line does not communicate the open, high, low and close the way a set of candlesticks does. The guy who invented them was named Homma Munehisa. His candlestick charts were so helpful that they have been used ever since. Candlesticks stand out. Candlesticks also show you intervals clearly. He was a rice merchant who lived from 1724-1803. There was a futures market for rice which showed up around that time, binary option and Homma wrote a number of books on investing.

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These will work with charts set to 1,2 or 5 minutes. Scalping Strategies – Scalping strategies are very short term form of price action trading although they also incorporate other types of signals as well. Price Action Strategies – Price action strategies are trading in it’s simplest form. In the old days this was done by watching the ticker tape all day, today it is much easier and more fun to use a charting package like MT4. Traders simply pay attention to price action, the minute to minute changes in prices, and how that action behaves in order to make trading decisions. Scalping, simply put, is a trade based on what you think the market is going to do in the next period, and this usually means minutes, never more than 10, 5 is perfect. These are best used with charts set to 5 minutes as the signals are generally good for the very next candle. Patterns include triangles, head & shoulders, pennants, flags, diamonds and binary option robot many more that can indicate continuation or reversal in the market. The candlesticks are nothing more than an expanded method of plotting price data on a chart but the effect is startling, almost like putting on a pair of glasses and seeing the world clearly for the first time. When prices, the market, moves it has momentum. Japanese Candlestick Strategies – Japanese Candlesticks are the premier method of viewing trading charts and give a variety of signals that are at heart price action signals but can also be used for scalping and other types of strategies. These strategies do not care about trend, only on which direction the market is going now and if it will keep going that direction long enough to place a quick trade. Momentum/Swing Strategies – Momentum is an important aspect of price action and technical analysis. I would suggest using the 1 or 2 minute charts with this type of strategy/expiry combination. Candlestick signals are good with any chart setting, depending on which method of trading them you choose. When this happens you want to trade with the momentum using an indicator like MACD or stochastic. Momentum is the amount of force behind the move, this force is the sum of the people and money moving into, or out of, binary option trading an asset and can carry prices in once direction for an extended period of time. Trend Following Strategies – When there is enough momentum, often described as the entrance of new money entering the market, a trend can be established. Trends, like all aspects of technical analysis, can be both measured and predicted. This means that those nearer term corrections are entry points in trend following strategies. A trend is a periodic and systematic movement in which longer term moves in one direction more than offset nearer term corrections in another. One of the oldest sayings in trading is "the trend is your friend, always trade with your friend" and it’s still around for a reason. Sometimes the markets momentum will carry it too far in one direction and when it does, prices will swing in the opposite direction in order to rebalance.