“ Support – The lowest price level an instrument can get to, before the price starts increasing. Resistance – The highest price level an instrument can get to, before the price starts decreasing. Source: Support & Resistance Trading Strategy
How to trade using Support & Resistance levels in binary options
• Trend lines are formed with every support and resistancelevels that are reached.• When a support level is reached, prices tend to move higher(it is ideal to place a CALL option at this point)•When a resistance level is reached, prices tend to fall makingit ideal to place a PUT option at this point.• Not all support and resistance levels are strong. So look outfor false levels.
So how to use Support and Resistance levels in Binary Options?
• Set up your charts to a 15 minute time frame. This is theoptimal setting to identify strong Support & ResistanceLevels.• With support & resistance trading, you are basically tradingusing the trend lines. (However note that there might be breakouts from time totime which will breach and set up new support and resistance levels.)• When placing a binary options trade, make sure the expirytimes are within the charts that you are using. (ex: If you arefollowing a 15 minute chart, the expiry time should be 15 minutes or less)• High/Low Type of Binary options works best.
Resources for Further Reading on Support and Resistance Levels
Trading Binary Options with Support and Resistance Levels(Source: Binary Options Reviews UK)What is support and resistance (source: wikipedia)
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