http://www.binaryoptionsheriff.com/trending-market-for-binary-options/ A Trending Market is one where the price of a currency pair, an asset, or an index moves in one direction. The trend can either be upwards or downwards. Charts on exhibit are courtesy of NetDania If we look at the chart below we recognise that we are looking at a market which is on a downtrend. The zig zags along the way are called retracements, meaning that the price pulls back a little bit and goes somewhat against the market trend. Trends also have what are known as the “higher points” in an uptrend also called the “higher highs”, and the “lower points” in a low trend marked with “lower lows”. When opting to trade Binary Options or Forex using a trending market, it is ideal to pick strong currencies. These are also known as liquid currencies because they are traded heavily. Major currencies would include, Dollar, Euro and Sterling. You may be asking why should one pick a liquid currency? The answer is very simple, and that is because you need volatility and strong movements in one direction in order to trade safely and either gain some pips in Forex or have the direction you chose in Binary Options end up in the money. The stronger the movement in one direction, the more chances a trader has of concluding a winning trade. Therefore having a trending market, clearly moving in one direction is a much safer market than a quiet market which is slowly hovering around the same price range. This is called a ranging market. A ranging market offers no opportunity for trading either Forex of Binary Options. In Forex you are not gaining any profitable pips in a ranging market, and in the Binary Options the direction will keep playing around an ITM and OTM every couple of seconds. A very risky situation indeed.
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