The basic principle of successful trading on binary options is a correct forecast of price changes for selected assets. For this, it is necessary to conduct a comprehensive analysis and pay attention to a large number of parameters.
Technical analysis is a basic and very important stage of analysis since it allows you to determine the type of current trend — ascending or descending. To identify the type of trend and its long-term, financial analysts use many tools, such as basic figures of technical analysis or various indicators.
Another basic concept of technical analysis is volatility, which shows the degree of price volatility, that is, how much the value of an asset rushes from one side to the other. The greater the volatility, the more unstable the price movements will be, the more zigzags will appear on the chart. Conversely, the lower the volatility of the asset, the more stable the price of the asset.
Interactive price charts provide the ability to visualize indicators — just click on the Indicators button and select the desired indicator from the list that appears. The basis of any indicator is a trend and some other more subtle algorithms which allows you to fairly accurately predict the future price trend in the short term. The most commonly used indicators in the technical analysis should include:
- Moving Averages;
- William's Volumes;
- MACD — Moving Average Convergence/Divergence;
- Bollinger bands.