In this article we will be discussing is the wikiTrader software a scam and how Moving Averages and Bollinger Bands can be used for analyzing market volatility.
How To Use The Charts
During a volatile market one of the best Technical Analysis methods that you can use are Bollinger Bands. These help to analyze an Asset’s dramatic price swings. Mathematical algorithms use Bollinger Bands for calculating where the highs and lows are located below and above a moving average. Standard deviation is what the bands are based on, which continues to change as volatility decreases or increases. When volatility increases bands widen and when volatility decreases they narrow.
When the price of an Asset moves in the direction of the upper Bollinger Band then it is a more favorable opportunity for starting a trade. When the Asset price is moving away from the upper Bollinger Band that is when you want to end the trade.
Watch For Trading Signals.
Whenever we apply the Bollinger Bands plus the market’s volatile action to Binary Options trading when we see if the Current Price moving closer to the upper band, than it when we want to conduct a Call options trade. Whenever the Current Price being moving away from the upper band a Put options trade should be placed.
When Bollinger Bands are analyzed over the course of several days, it’s very easy seeing the Signal Point where the trade is suggested. However, it can be somewhat elusive to apply the Bollinger Bands with hourly charts. To read the hourly charts takes practice and time to be confident you are observing the correct Signal Point. The best thing to do is paper trade over the course of several days so that you can gain the necessary confident to understand what is being signaled by the charts.
Don’t rusk or try talking yourself into some sort of false sense of confidence. You will have more in-the-money trades in the future, the more you practice first with paper trading. Use the research tools and training facilities that are provided by your broker. Over the long run it will be very well worth it for you.
Resistance and Support
When the Current Price is showing an upward trend, sometimes you will see a short dip or drop with a brief price line flattening, then the price will keep rising.The brief Sideways Moving or flattening price is referred to as a Support Price given that the price keeps rising from the end of that brief time period. What that means is there is a sufficient number of investors who are wiling to purchase the Asset and “support” the Asset’s popularity.
Whenever the wikiTrader software price trend being to move downward and then turns briefly upward before continuing to drop, the brief uptrend’s high point is referred to as the resistance point. It demonstrates that the downward trend is being resisted by investors by them purchasing the Asset and hoping that the price trend will turn around into an upward trend.
Although Moving Averages are included by the Bollinger Bands as part of the analysis, you should not use a Moving Average chart alone when making your decisions.
Our series of articles on Binary Options Trading was written to provide people who were wanting to get started trading Binary Options with a solid foundation. Although our series of articles has discussed the basic foundations of Binary Options as well as the due diligence that surrounds them, it is not in any way comprehensive on each and every detail. It is very important for casual investors to remember that there is never any substitute for conducting your own paper wikiTrader software trades and doing your own personal research to acquire the necessary skills for making whatever kinds of trades you desire.