Part 3: Technical Analysis — Using Trend Lines

Hello and welcome to another episode of specialized evaluation. Now I will show you comprehensive examples of trading binary options using a few of the very fundamental (but still very important) matters — fad lines. We’ve talked about how to draw the trend in the very first episode of technical evaluation, so in the event that you don’t know how to, then I certainly advise you to read it.
Picture 1: Graph USD/CAD with M5 timeframe.
Picture 1is a trailer of cost development from this morning together with the M5 interval, meaning that one candle signifies the maturation of the cost in 5 minutes. Permit ‘s draw on the trend line of immunity uptrend. I would rather draw trend lines at greater timeframes than the one we use to search for transactions. So I changed to the M15, brought the trend and changed back to M5 for greater orientation.
Picture 2: Graph USD/CAD with M5 interval in this morning with TL.
In Image 2, we’ve attracted the trend line. We see that each time the cost touched our trend line, it bounced down superbly and generated plenty of chances for transactions. When we had used just the plan of fashion lines revearsals, we’d have had lots of chances to trade.
Let’s ‘s look at these at the Image 3
Picture 3: Graph USD/CAD with M5 interval out of this morning with TL and transactions
In Image 3, I have researched all of the areas that we’d be considering. Let ‘s discuss why they are significant.
A: At this stage, we could not trade since it’s the place we had to draw fashion line. Until then, we didn’t know if this point was likely to be somewhat lower or higher.
B: Intersection with TL, although the very first point of commerce. We entered the transaction using a PUT option together with the expiry period of 15 minutes. It stopped In-Money.
C:Place of next commerce. We entered the transaction using a PUT option with expiry period of 15 minutes.
Regrettably it caused Out-Of-Money.
D:Place of third commerce. We entered the transaction using a PUT option with expiry period of 15 minutes.
It stopped In-Money.
E:Place of some other trade. We entered the transaction using a PUT option with expiry period of 15 minutes.
It stopped In-Money.
F:Last commerce. We entered the transaction using a PUT option with expiry period of 15 minutes.
It stopped In-Money.
G: No stage G was drawn yet, but we could see it’s coming. Candle spanned the TL, and in the moment we might have put yet another PUT trade. It appears, we might have finished in-money, but who knows? In the time that I wrote this guide, I didn’t understand what happened .
Delightfully, we’ve shownthat with a very simple strategy, which doesn’t even use any distinctive index, can well estimate the motion of the marketplace. Suppose we exchanged together with all the brokerStockpairand with the cheapest potential transaction size of 20. We had 5 transactions, 4 of that finished profitably. Complete gain will amount to $44. This isn’t bad at all for a single day.