Increase the Odds of Profiting From the Binary Trading Software

The binary robots let you trade manually as well as using the algorithm. It is good if you know the basics of trading because it will let you increase the probability of profiting from the trade.

The trading software uses technical analysis and this lets them generate trading signals. The best part of technical analysis is that the same concepts are followed in all the asset classes. Thus unlike financial analysis, you can apply the same rules to every asset be it stocks, commodities, or currency.

Understand the charts

Support and resistance is an important part of technical trading. It is thus important that you understand ways to identify the support and resistance levels. You need to understand the charts and be able to study them to find out the support and resistance levels.

The support is a level to which the price falls a number of times but does not go below the point. When the price rises to a particular point but does not go above that then this is the resistance level. However, it is important to know the strong support and resistance levels because not every level is strong to allow the price to bounce or fall from that level.

Spot the S/R level

You thus need to know how to determine the strongest support and resistance levels. The number of times the stock either bounces from or falls from the level, the stronger is the support or the resistance level. The number of times this happens it is bound to happen again. The more this behavior gets repeated the stronger is the level and thus the traders get more confident about these levels. Some stocks find it really hard to break out from this range.

Find out more about how to use these support and resistance levels. These levels are used to enter or exit a trade as well as to place stop losses. The support level is where the trader will get into the trade. The stop will be placed below the support level. The resistance is the point where the trader will sell. It is also the level from where a trader will short sell in the market. In case the short sells then the stop loss will be placed above the resistance level.

Stop loss is important because investors know that historically these price levels have worked out. However, in case the price level is violated then the levels are now broken and thus the trader gets out of the trade with a small loss. So once the stop gets triggered the price chart makes a new support or resistance level.

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