This is one of the most common and easy to use binary options strategy. The trend analysis strategy is used by both beginners and experts because using this type of strategy with the right broker like [eafl id=”279″ name=”IQ Option” text=”IQ Option”] or [eafl id=”277″ name=”Expert Option” text=”Expert Option”] can make you good profits from the market.
Why We Need A Trend Analysis Strategy
The price of an asset rises and falls due to demand and supply and in that process, trends are formed. The trend is your friend because it gives you some clues about the market’s behaviour, it can tell you if a market is ‘bullish’ or ‘bearish’ or if there is about to be a reversal. If you can recognize and make proper use of this trends then you would be making some nice profits from the market.
How to Use the Trend Analysis Strategy
Using the trend line strategy, all you need to do is to identify trends patterns in the market, know what they’re telling you about the market and simply follow the trend.
Below is a brief description of how to use the trend analysis strategy.
Tips on Using the Trend Analysis Strategy
- Use tools such as the moving average and the MACD (Moving average convergence divergence)
- Wait for candlesticks confirmations before entering a trade. For instance, if you think there is going to be a ‘reversal’ or ‘breakout’ when the market’s price reaches it ‘resistance’ or ‘support’ zone wait for a reversal or breakout candlestick formation before entering a trade.