How to Select a Good Charting Package
Charts and various other tools are an important part of binary options trading. Not only can these help with trade selection, they also can be invaluable when it comes to determining where the price of an asset will go next. There are several reliable options where charting packages are concerned, ranging from the most basic to quite advanced. Consider the following information before making your selection.
Every broker now offers some form of price chart within their platform. In some cases, this chart is very basic, showing only current and past price movement (typically for a period of the previous 12-hours). This type of chart is excellent for those who are just starting out. It shows rises and falls in movement, as well as flat movement. Price trends are easy to spot using these charts. To put it simply, they do serve a purpose, but usually do not provide advanced information.
In an effort to draw in new clients, some brokers now offer charts that can be customized to show different views or include various indicators. Bar and line charts, candlesticks, stochastic, support & resistance, and more may now be viewed within some platforms. If your broker provides these, feel free to use them. They can make trade selection easier, and of course can help with forecasting the upcoming price changes. They may also be a time-saver, as they are placed directly within the interface.
By far, the most popular charting option for binary options and Forex traders alike is MetaTrader. This customizable chart can be set to provide many different views of price movement, time periods, indicators, and much more. It can take some time to fully master its use, but the time and effort will certainly yield dividends in the form of more profitable trading. MetaTrader is made available for free and can be downloaded from various sources online, including Forex brokers.
Another helpful tool would be an economic calendar. There are many versions to choose from, but at a base level, it is wise to select on that contains not only the dates and times of important data releases, but analysts forecasts and actual data as well. An economic calendar can be used to plan trades in advance, positioning yourself to enter the market as soon as an opportunity presents itself. Company-specific financial data may be included as well, providing even more chances to enter the market.
Although not exactly a tool per se, a reliable source of market news is needed. Trading successfully requires that you stay on top of the happenings taking place in the global markets. Most traders choose to refer to market news websites for information, but television, radio, and newspapers can of course be helpful as well. What is most important is that you understand what is moving the markets each day, acting in accordance with this information when making investment decisions.
The act of trading binaries does require that a few tools be used to help with forecasting price movement. Trading without performing analysis is essentially trading blind – something that no trader should ever do. None of the tools mentioned here require any investment, so there really is no excuse for not using them. Additional extras such as alerts and signals may also be used, but note that these come at a cost.
Regardless of your present skill level, some type of technical chart, an economic calendar, and source of market news should be included in your trader’s toolbox. Without them, you simply will not be able to maximize your earnings potential. With them, binary options trading can be an extremely profitable endeavor.