Are you a beginner in the trading world? If yes, then you are at the right place. The reason is that we are aware of the real struggle of newbies behind deciphering the trading concept. Beginner traders have fearful nights after making investments in binary options, forex, digital options, and cryptocurrency, etc., due to non-expertise. Thus, we have assembled the trading analysis of binary options through charts in the article below.
There are multiple techniques and tools available online and offline for analyzing binary options trading. Among these tools, few of them are free, and others need to be purchased. Here, we will discuss the Online Binary Options Trading Charts, which will help traders understand the trading trends. Moreover, it will ease the decision-making process as well.
So, come and explore how many types of trading charts are available in the marketplace.
Types of Trading Charts for Binary Options:
The online binary options trading charts interpret the price movement of any asset for a particular period identified by the trader. These trading graphs appear in the configuration of a tick chart, line chart, and candlestick chart. The vendors use these graphs according to their trading requirements.
Let us dive into the charts/graphs to analyze the online trading system!
● TICK CHART:
A tick chart is a graph that depicts every single rate fluctuation within a specific time frame. A blend of tick chart and time chart followed for analysis of binary options trading. A tick chart generates the next bar observing an initial set of exchanges, either that tick is upward or downward. However, time graphs are composed on a precise time frame and configured for different and multiple intervals.
Let us interpret it through an instance, a chart consisting of 456 ticks generates the next bar after every 456 trades. You can compose tick charts as per your own desired volume of exchanges. For instance, you can organize it to trade for 10 ticks, 100 ticks, 1000 ticks, and 10,000 ticks.
- Pros: It can show price fluctuations for a minute as well as a second.
- Cons: It can’t show price fluctuations older than 30 minutes.
● LINE CHART:
The Line Chart is similar to the tick chart, or you may say it is the extended version. Through a line chart, the trader will analyze the trend for a couple of hours or days. The graph shows detailed information about the closing price after some intervals for a long tenure. Whereas a tick chart only represents the price for a small amount of time.
The line chart is preferable for the prediction of the overall trend of any asset/stock. It shows the changes for short and long periods. Suppose you select an asset and expiry date and time. In that case, the line chart will show a summary to examine over numerous hours and days.
- Pros: The line chart depicts the price instability for each interval for a prolonged period.
- Cons: The summary provided on the chart is not enough for trading as it recorded only the closing price.
● CANDLESTICK CHART:
A Candlestick Chart is the visual interpretation of the price movement of assets in a series of multiple candles moving up and down throughout the chart. The Candlestick chart is the more advanced chart that forecasts the direction of the assets’ price. Each candle represents the time interval such as 5 minutes, 30 minutes, etc. These candles have the following interpretation:-
- Open Price: The early price exchanged during the appearance of the next candle or bar. The upward price direction will spin the candle green/blue. However, the downwards price direction will twist the candle red.
- High Price: When the graph indicates a green/blue candle, it interprets that the last price is higher than the first price of a specific period, for instance, 10 minutes.
- Low Price: When the graph indicates a red candle, it interprets that the last price is lower than the first price of a specific period, for instance, 10 minutes.
- Close Price: The last traded price when the candle was visible. The candle will twirl red if the ending price route is below the open price and green/blue if it’s above the entrance price.
These charts are best for daily trading estimation. Like other graphs, it also has some advantages and disadvantages according to its usage:-
Pros: It is highly customizable and provides immense information in a single chart.
- Cons: There might appear gaps between the closing of one candle and the opening of another candle.
Trading Charts Platforms for Binary Options:
After knowing the types of trading charts, it becomes essential to learn where the traders will get these charts to predict the change in price movement that is crucial for online trading analysis.
So, nothing to be worried about at all!
We have this too.
Online charts are graphs that are available on the broker’s website and dealers’ software. The following online website have trading graphs for quick analysis:-
These graphs show the inflexible connection of the data and tools. Overall, considering binary options trading, online trading charts are not adequate contrary to offline charts.
As clear from the name, the offline/downloadable graphs are more appropriate as they come along with packages (free, partially paid, and 100% paid). The merchant selects the plan according to his technique. The following broker apps are available for download:-
- Forex Chart
- OFX Dashboard
- MT4 Traders
- IQ Options
While considering the online trading system, trading charts are a mandatory tool to analyze the trends in binary options, digital options, forex, cryptocurrency, etc. To sum up, let us categorize the trading into long-term trading and short-term trading.
On the whole, for short-term trading, a “Tick Chart” is preferable, as it may expire within a few minutes or less. A “Candlestick Chart” is exemplary for long-term trading because it concentrates on the preceding seven days’ trend or more, encompassing numerous intervals and an advanced level analysis. Hence, it is considered the simple yet best technique. But, most of the brokers don’t provide this service, so you have to consult other websites.
So, which chart would you consult for your next trading decision? Tell us in the comments section.