What is a Trend ¦Reliable Binary Options Trading South Africa

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What is a Trend?

All those who have ever dealt with any sort of trading will be familiar with the notion of “trend” and just how important it is.

Yet, if there are South Africans who are only now venturing into financial trading via binary options, in this strategy article we will attempt to explain the key factors concerning trend and also offer the explanation of what is a trend.

In short, trend is among the most important elements which every binary options trader has to take into consideration before they begin to trade with any underlying asset. Actually, it is possible to view it as a helpful trading tool.

In fact, the importance of trend is so relevant to the point that no matter the strategy or approach being used in the binary options trading process, most of them will also take into consideration the current trend to try and make their estimation of the market situation as exact as possible.

So, one might simply say the definition of the trend is the prevailing direction of the price of the underlying asset. The trend is usually set across several time periods in which short and term trends frequently occur and play their part in much larger trends. The trend can run in a time span which might be days, weeks or even stretch to months or years.

To use the information provided by the current market trend, traders have to monitor the trend during the duration of their trading process and are advised to always take into account the larger trend rather than short term-one.

Yet, for those South African traders who want to use trend to spur their trading success, the deeper knowledge and understanding of several important components connected to trend are an absolute must.

Bearish Vs. Bullish Trend

Terms bearish and bullish are often applied when describing a market trend.

Bearish Trend – the downward trend in which traders are aiming to buy the “put” options.

Bullish Trend – the upward trend in which traders are aiming to buy the “call” options.

Majority of traders monitor the trend by following the trend line which aids traders when it comes to making a decision concerning their trading process. The trend is put in a more powerful position via corrective waves while impulsive moves marked by various fluctuations bring about a solid base for trending.

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However, what prospective South African traders need to keep in mind is that most markets spend considerable amount of time in in the so called consolidation areas rather than in trend-friendly conditions.

Yet, what sustains traders in during those prolonged consolidation periods is the ability to spot and identify a strong trend and profit from it.

Elliott Wave Trend in Binary Options South Africa

The Elliot Waves trend can be described in terms of impulsive moves which is, essentially, when the market is moving in a certain direction.

The key is to successfully interpret those moves and the principal market movement in order to use the information to their benefit.

For the impulsive mode to be formed five waves are necessary, or at least a five-wave structure containing the minimum of three impulsive waves. The other two waves in the structure are the corrective ones which makes this instance the right moment to start the buying spree.

So, it is possible to say that the theory behind the Elliot Wave trend claims that various levels exist during which traders ought to select the call option and that is dependent on the market wave formation.

Another useful trading tool South African traders can utilize is the Fibonacci tool.

This tool is most effective during the period when one wave on the market just ended and a next one started. The key is to measure the length of the first wave since that will tell the traders if the trend was bullish or bearish.

In the first instance, South African traders should go for the call option, and in the second one the traders are advised to rather opt for the put options instead.

Utilizing the Trend Strategy

One of the most important skills when it comes to utilizing the trend strategy is knowing when and how to change the trading strategy according to different market situations.

And to develop that skill, traders have to invest time, patience and will to learn and develop their approach to trading binary options constantly.

It makes little sense to study the trends in a five-minute chart in, say North America, if that session is nearing its end and the session in about the begin in Asia.

Hence, to spot the perfect moment to buy or sell an option is the key ingredient of successful binary options trading. By selecting the favorable striking price and by combining that with the right expiration date the successful binary options trading takes place.

In taking time to study and understand what is a trend and how to use it properly, that goal could be attainable for South Africans looking to have a positive binary options trading experience.

What is a Trend?

The simplest answer to the question “What is a Trend?” is – a helpful tool in binary options trading process.

Yet, to be able to use and benefit from this strategy, South African traders first have to able to understand several elements connected to trend otherwise the outcome might be one nobody want to face – loss of funds.

That is why we shall present key aspects of this strategy in this article and answer the query – what is a trend?

In the most basic terms, is is possible to define trend as a string of higher lows and lower highs.

Additionally, a trend can be characterized as either bearish or bullish.

When bearish trend is concerned, traders are dealing with a downward trend and are looking to buy “put” options.

On the other hand, in bullish trend traders are looking to buy the “call” option due to the upward movement.

One way to follow the trend is via trend line which serves a guiding light when traders have to make the right decision when it comes to price meeting either support or resistance.

Corrective waves put trend in a more powerful position, rather than impulsive moves with fluctuations actually providing fertile grounds for channeling and, accordingly, trending.

However, consolidation areas are where most markets spend quite a lot of time rather than in conditions favorable for trending.

Nonetheless, being able to identify a strong trend could garner healthy profits and sustain traders during periods of consolidation.

Elliott Wave Trend in Binary Options

Elliot Waves trending is in close association with moves which are, in their essence, impulsive as that is the time of market movement.

Yet, being able to understand and interpret those impulsive moves and the direction of market movement is the basis of understanding the trend.

Five waves are needed to form an impulsive mode or, alternatively, five wave structure where a minimum of three waves are impulsive. The remaining two are corrective, so when traders are in the search of a trend this is the moment one ought to start buying.

Elliot Wave Theory states that there are various levels when traders should go for a call option and it is heavily dependent on the forming of a market wave.

Fibonacci tool is ideal to use in case when a market just finished one wave and started with a second one since it is necessary to measure first wave length. Should the first wave be characterized as bullish than the recommended move is to buy the call option, and by analogy, should the wave have all the characteristics of a bearish trend the put option is advised.

Zigzag pattern is the first thing connected with channeling and, accordingly, trending. As mentioned previously, channeling is not possible with impulsive wavers but rather with corrective ones.

Naturally, direct correlation between the expiration date and time frame has to exist on which the technical pattern is forming.

Trend Overview

A market which is moving or travelling is described in the terms of trading as ranging is the polar opposite, and is used for a stagnant market.

The key aspect traders have to apply is the ability to alter the trading strategy in accordance with the different concepts and time periods.

It is of little value to explore trends in North America in five-minute chart if that session is just about to end, as the session in, say, Asia is just about to begin.

The reason behind it is simple – session in Asia is marked by ranging hence putting techniques of range trading to use makes much more sense.

Pinpointing the most favorable moment to either sell or buy an option forms the basis of a profitable binary options trading. In order to do that, traders need to find the right expiration date in conjunction to an equally favorable striking price.

Being able to understand and identify a trend can be of immense help in achieving that goal.

What Are Binary Options?

What are binary options?

That question awakened interest among many people on global level and also in South Africa.

Back in 2008, a novelty of binary options industry appeared in financial market and started a growing trend in online investment business. So let us explain you what binary options are how you can profit from binary options trading.

Binary options are options with fixed payout and fixed deadline when asset expires.

Traders who invest in binary options have to predict a direction of price movement of particular underlying asset. Traders from South Africa can choose if they want to place trades in stocks, currencies, commodities or indices. For more detailed information on what are binary options and how to trade, readers can check further in the text.

Where to Start Trading Binary Options?
If you are new to binary options world, the best to start with is to choose a trustworthy binary options broker.

Because of the popularity of binary industry, an increasing number of binary brokers in nowadays present on financial market. Sometimes it can be difficult to distinguish reliable brokers from scam.

Security of trading platform and transparent business are the main elements by which traders in South Africa can see it they are dealing with trusted broker. We advised you to start with evaluating several binary brokers in the industry by checking their reviews. This way, you can get whole picture of broker’s platform, trading instruments and available services to their traders.

Features, such as transparent business, up to date customer support and quick deposit and withdrawal are usually signs that we are talking about quality trading platform and reliable binary broker with whom you can achieve success in binary options trading and maximize profit.

If you are about to start a journey as a binary options trader, then you need to gather some information on this matter. First of all you need to find out how you can trade binary options and where to begin.

This way, you will be able to understand the matter better and earn money while trading. This information will help you to gain confidence about what you are doing in trading process. Here on binaryoptions.org.za, you will be informed about the simple steps which will help you understand the trade pattern and the style of the trade.

This way, you can deal with binary options with much more confidence. In order to achieve success in binary trading, you have to make sure that you follow a set of simple steps. These steps will allow you to have better understanding of how does binary options trading process look like.

Binary Options Trading – Step 1

First of all when you join a trading platform, you need to choose an underlying asset. A lot of brokers offer wide range of different assets, from stocks and currencies to commodities and indices.

The number of assets may differ from trading platform to platform, but the basic type of the assets will remain the same always. You can choose any one or more assets you want and trade on them.

Binary Options Trading – Step 2

In the next step you have to predict the nature of the price movement.

You have to predict whether the price of the assets you have chosen will go up or down. If you think that the price will go up, then you have to opt for the call option, otherwise you have to opt for the put option. After choosing the movement type, you have to choose the amount of money you want to trade with.

Binary Options Trading – Step 3

Once the preferred amount is chosen, you have to choose the time period within which you think that the price movement will happen. After that you have to wait for the time period to expire. If your guess is right, then you will get the money, if not then you will lose the money you have invested.

There is a lot of expiry options available for choosing, ranging from 60 seconds to end of month or up to 150 days. This is known as the time of expiry.

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