There is nothing better than the binary options charts to know an asset’s price historical information. The process of building your trading strategy simplifies with these charts.
Binary Options charts help the traders accumulate real-time information. This information aids them in trading binary options successfully. The relevance of binary options charts is highly significant since the trading is based on a yes or no proposition.
Before diving deep into a discussion about how you read binary options charts, let us tell you more about them.
Meaning of Binary Options chart:
The binary options charts are a great tool to know the historical information about an asset’s price in real-time. A binary options trader can access these charts to decide to place his binary options trade.
Binary options are free for all traders on major online trading platforms. Quotex lets its users access many binary options charts based on the type of trading account they hold. With the help of binary options charts, a trader will be able to see the trend of price fluctuations.
Binary options charts allow you to view order book history and various performance indicators. With the help of this information, a trader can predict an asset’s price. If his prediction becomes accurate, he can add more to his wealth. While an asset’s historical price might not guarantee its future price, a trader can still use his information to plan his trades.
With that said, let’s take a peek at various binary options chart types you can find on many online trading platforms.
Binary Options charts types:
As mentioned, you might be able to access most binary charts on the online trading platform for free. However, the broker might restrict your access to some charts. It depends entirely on the type of trading account you sign up for with the broker.
Some common binary options charts you can access on most trading platforms include:
Japanese candlesticks
For centuries, candlesticks have formed a part of the analysis traders make. Candlesticks are one of the most significant binary options charts.
Each candlestick in the chart will have the same width, depending on the time frame you chose for your binary options trade. There is also a central box in these charts that tell you about the asset price at the trade’s entry and exit.
Generally, you will see two colors in the binary options candlestick charts, green and red. These colors tell you about the direction in which the asset price moves. The green color signals an increase in price at the time of exit. On the contrary, the red color signifies a decrease in its price.
The central box also has two wicks which help the traders determine the highest and the lowest value an asset assumes. Sometimes, you might even witness the absence of these wicks signaling the highest and lowest values during the period.
Bar charts
Bar charts are famously known as ‘open high low close’ charts. These charts are not only helpful for forex or commodities trading, but they are also significant for binary options trading.
Bar charts and candlestick charts have a lot in common. However, the only difference is that candlestick charts present the information with the help of green and red colors. On the other hand, the bar charts represent the information colorless.
Another difference among these charts is that the bar charts use small branches to help you determine the maximum and minimum value. Contrary to this, the candlestick charts use a central box. The small branch on the left side of the bar depicts the entry price. On the other hand, the ones on the right-hand side show you the exit price.
Line and mountain charts
Unlike the candlestick and bar charts, line and mountain charts do not tell you about the opening, high and low prices. Line and mountain charts are beneficial in knowing the history of the closing price of the underlying asset.
All beginners can use line and mountain charts, as this is one of the easy-to-read binary options charts. With just a look at the vertical axis, you can read an asset’s price information.
Line and mountain charts are typically the same as you find them plotted on the same line. However, you can witness a little shaded region beneath the mountain charts, differentiating them from the line charts.
Quotex allows its users to access all these charts to help them decide whether to put or call an option. These binary options trading charts at Quotex let the traders make profits by placing accurate trades at the right time.
How do you read Binary Options charts?
To be able to trade binary options successfully, the trader should be able to read the binary options charts. A trader might accumulate plenty of information through news and other technical analysis.
However, if he cannot combine the information with other trading charts, he might lose his trades. Therefore, we will help you understand how to read the binary options charts.
The horizontal axis
While trading binary options, a trader should specifically be aware of the expiration time. A trader should predict an asset’s price accurately at the end of the trade.
The x-axis of the binary options chart depicts the time, which can range anywhere from 60 seconds to years. You can choose a time frame depending on your trading strategy. Choosing a time frame will let you concentrate on the most important information for your trades.
In intraday binary options trading, you can use the 1-minute, 2-minute, or 30-minute charts.
Indicators and tools
You can use various tools and indicators in your binary options trading. These trading tools and indicators can potentially serve you to build your trading strategy. However, completely relying on these trading indicators is not wise, as you will need research to place profitable trades.
Comparison tool
Comparison tools help analyze the performance of your underlying asset in comparison to another. Using the comparison tool, you will be able to compare one asset’s price history with another. You only need to overlay it into the price chart of another asset.
For example, comparing the price of two binary options by laying one on another asset’s price chart is possible for you. A comparison tool will strengthen your arbitrage trading strategy by comparing two linked assets.
Bollinger bands
You can add various indicators to your binary options charts to conduct an accurate technical analysis. Bollinger bands are one such indicator that can help you create signals when added to the charts.
You can calculate the moving average on these charts for an asset. You can also find the upper and the lower limits by calculating the standard deviation from the moving averages.
Eventually, a trader will be able to determine whether an asset is overbought or oversold. Once you know this information, you will be able to decide whether to call or put a binary options trade.
Bollinger bands are one of the widely used trading indicators on Quotex. Many beginners and advanced traders use this indicator with binary options charts to win their trades on Quotex.
Average true range
The ATR is an indicator you can use on binary options charts to determine the volatility. The ATR value is higher when the asset price changes suddenly with large swings.
ATR is an indicator that helps you determine the most profitable time to enter a binary options trade.
Moving average convergence divergence
If you want to know the asset price trends, the MACD indicator will do the job. You can use this indicator on various binary options charts to determine the resistance and support levels.
This trading indicator usually creates two lines: the MACD and a signal line. These two lines have a basis of historical data, and you can use them as alerts about when to buy or sell your binary options.
This trading indicator is common on almost all online trading platforms, including Quotex. The broker offers you all the leading trading indicators you can use on the binary options chart to determine your course of action.
Trading with Binary Options charts
Now you know everything about the binary options charts and some of the trading indicators you can use on them. After researching, choosing your assets, and selecting the binary options chart you wish to use, you can proceed with the following steps to place your trade.
Form your trading strategy
Building a trading strategy is crucial since it will affect how you interpret the binary options chart. Therefore, you need a basis on which you make your trading decisions. Forming your trading strategy gets hassle-free with the use of a demo account. All trading platforms, including Quotex, offer you a demo trading account, which you can use to build your trading strategy.
Create your account
You will need a live trading account to trade binary options using the binary options chart. Plenty of brokers offer you modern features and the best trading experience. You can sign up with Quotex for some of the best trading experiences.
Choose an underlying asset
After signing up, you can choose an underlying asset on which you wish to place your trade. You can use trading tools and various indicators to find the best-performing asset in the market. Quotex offers you all the leading indicators which you can use to choose an asset you love.
Choose the binary options type
There are many kinds of binary options trade you can place on all online trading platforms. It includes high or low, boundary or range, 60-second trades, etc. Quotex lets you choose any binary options trade type you wish to enter.
Fund your account
The next step to placing your binary options trade is to fund your account. All online trading platforms offer users multiple payment methods to deposit and withdraw funds. For instance, Quotex lets you choose from credit cards, debit cards, online transfers, and electronic wallets for making deposits and withdrawals.
Start trading
Finally, you can start to trade by using the trading indicators and binary options charts the broker offers.
Binary Options charts sources
Though your broker offers you the most binary options charts, you can even access these charts from other sources.
Generally, there are two sources from which you can access the binary options charts. These sources are:
- Online sources
- Downloadable charts
Online sources
Various online sources, including many websites, let you access binary options charts for free. However, the online sources do not offer the traders much flexibility in using the charts with other trading indicators. Therefore, if you wish to arrive at the most accurate trading decision, you should avoid using such inflexible binary options charts.
Downloadable charts
Many charts are available that you can download from online trading platforms. You can also access various software standalone plugins to analyze the market for your binary options trade.
Here is the information of some sources you can use to download your binary options charts. Some of these sources might offer you free access to charts. However, you might have to pay a few dollars to access the full features of some software.
FreeBinaryOptionsCharts.com
If you are a beginner, you can download your first binary options chart from FreeBinaryOptionsCharts.com. The charts from this source are easy to use, and they also include a guide, which they can use to learn using these charts.
Forex Charts Widget v1.7
You can download these binary options charts from Softpedia for free. This chart is the brainchild of Chris Craig, and it allows you to view currency pairs. In this chart, you can choose your desired time frame and apply various indicators for perfect technical analysis.
MT4 Charts
MetaTrader 4 platform is one of the best and the most reliable sources for downloading the binary options chart. Almost all the brokers offer the traders MT4 charts. You can download one from a broker that lets the users access more than 40 currency pairs and the leading indices.
A trader can access these binary options charts after downloading the MT4 trading platform from these brokers.
Interactive brokers information systems (IBIS)
Looking for one of the most interactive charting software? The interactive brokers’ information system offers you that. You can find 22 technical trading indicators with all the modern charting facilities. However, you might have to pay a certain cost to acquire this charting software.
My FX dashboard
Another source of binary options charts is the forex charting service from OFX. The charting software offered by the FX dashboard lets the traders conduct line studies. You can also use the trading indicators on these binary options charts.
Though you cannot download this software, you can change between the basic and the advanced charts.
Multicharts
Multicharts offer you downloadable charting software with some of the best features. These high-definition binary options charts make 30 different currency pairs accessible to traders to help them plan their trades. You can set your desired time frame on binary options charts from multicharts.
These binary options charts are developed by MCFX and are a complete package for the traders.
Free stocks charts
All beginners can access easy binary options charts from the free stocks charts. A beginner can use these trading charts without much complication to determine a suitable time for placing a trade.
Conclusion
Binary options trading gets less complicated and more profitable for the traders with the help of binary options charts. The traders can determine a lot of information about the assets with the help of these charts.
When they know about the direction of the price change, resistance, and support levels, they will be able to predict the future price accurately. It will let them know the right timing for placing a trade.
There are various sources from which a trader can download the binary options charts. You should use these charts to win your binary options trade if you are a beginner.
