Even beginners to the financial market have heard this expression that describes the basic operating principle of traders — «The trend is our friend!» In this material, we will offer a description of highly effective, classic methods of identifying trends on the trading quote chart and several examples of trading in this market situation. This will allow you, as investors on the binary market, to obtain consistently high results through the maximum efficiency of your trading processes and the security of the trader’s capital.
What are trends and the methods to identify them?
A trend is a mode of chart building in which the price exhibits prolonged movement in a certain direction. Moreover, the asset quotes don’t only move linearly; they can also experience multi-directional reversals and fluctuations:
The vast majority of binary investors use the trend as their main technical forecasting tool, which allows them to achieve the best possible trading performance indicators.
To identify the trend, market players apply a few simple, classic approaches:
- Visual — simply observe the trading chart and determine the direction of quote movement
- Graphic — this mode uses chart lines that identify not only the direction of the trend, but also its levels of support and resistance, from which price quotes carry out correctional and technical reversals
- Indicator — as a tool for identifying and determining the direction of the trend, this approach uses special technical algorithms – indicators. A classic example of this type of tool is the MA indicator (moving average).
Based on those trend identification formats, the classic examples of binary trading trend strategies are built on asset trading charts with forecast performance indicators at the level of up to 90% on average, which really makes it possible to get technical advantages over the market in terms of the profitability of the trading processes.
As classic approaches, we offer the following instrumental strategies for binary options trading on the trend with the maximum level of simplicity and efficiency:
- Trading from the trend level – in this type of trading system, a signal is used in the form of a short-term touch or breakthrough of the resistance/support level with a subsequent quote reversal in the direction of trend movement:
- Trading operations on the MA indicator – here binary traders use two types of trading signals, the dynamic moving average breaking through the technical algorithm in a certain direction and the price touching the indicator line:
- As the most productive and effective trading on the trend system, we offer the classic method of working with the Alligator indicator (this technical algorithm is a technological derivative of the classic MA indicator, which makes it possible to more clearly identify points where the trend is just beginning to emerge). In this type of trend trading system, a signal is used in the form of a directional intersection of a combination of three MA lines with a certain algorithm for the settings:
These trend strategies allow the trader to work under any conditions of market fluctuations, and they are universal for all underlying assets and have the highest performance indicators for trading processes.
In order to obtain the most effective technical and financial conditions for trading on the trend, you will need a terminal with a wide range of tools for identifying the trend and the trading conditions that will be most effective for money management. In this regard, we recommend using the services of the Binomo broker. The terminal from this operator offers the largest choice of analysis tools and the most acceptable trading conditions for binary trading:
- A set of technical trend indicators
- Chart tools for working on the trend
- Binary contracts with yields of up to 87%
- The widest choice of assets for trading — 80 items
- Trading bets in the Turbo and binary options formats
- Contract expiration periods from 60 seconds to 24 hours
- Trading condition parameters — an initial account from 10 dollars, the minimum options cost is 1 dollar
The terminal’s toolset and the broker’s trading conditions in combination with an effective trend trading approach make it possible in the simplest and safest conditions to obtain high profits on the binary market.