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johnatan hammer
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trading stocks, currencies and commodities for more than 10 years. allways happy to learn new things and anyone i meet can be a teacher. i love to use technical analysis as a primary tool for investments or trades.
  • Riding The Trend In Binary Options 0 comments
    Feb 24, 2013 6:55 PM

    Riding the trend using binary options.

    In Technical analysis we assume that the movement of long-term trend is influenced by the movement of a certain trend in the long term it.
    Examples we assume that the graph is on the rise monthly weekly chart will eventually trend as well and thus also the daily chart.
    This assumption there is a fundamental and technical basis for both.
    Fundamental basis for long-term means that prices are affected by threats and other opportunities that swept long-term moving Fundamental basis for long-term means that prices are affected by threats and other opportunities. Thus swept moving in one direction in time after the long move in the same direction even shorter in time because the chance effects and long-term threats to the property price will change in the short term.
    Technical analysis assumes that within any continuing up-going trend, after every drop will the price be back to a higher point than it was before the drop and in a declining trend every time the price goes up it will be solely in order to go for back to a lower point.
    The graph has two axes: the return and timeline.
    Normal trading assets we devote the bulk analysis evaluating potential return.
    Binary options however we devote the bulk analysis to assess the timeline.
    The reason is that the return does not change and we'll be in the money by a margin of one cent price of admission to earn a return of 70%.
    Therefore we need to trade with the trend, but the purchase must be made using the graph in the shorter time frame.
    We need to look for points where the short trend contradicts the long trend and to buy within the direction of the long trend.
    Theoretically if a trader buys call options with a view to, or exceeds, or put in a downtrend chances of its profit will be higher than the chances of loss.
    In order to optimize the ratio of our earnings we buy at the point where the graph opposite term trend or professional - technical correction.
    To analyze properly the technical studies I would recommend using a ratio of approximately 1 to 2 from the long term graph to the short term chart.
    For example, if we want to trade on a graph of fifteen minutes we search the graph of a technical correction 5 minutes.
    If you trade the one hour chart look for the patch graph of 15 minutes or so.


    I attached a 4 hours chart Gold until the 25/2/12.

    It is very obvious that the Gold is following a down going trend line and the chances are very high it will continue to travel lower.

    (click to enlarge)

    However if we are analyzing Gold within the 1 hour chart it becomes much clearer that the area of prices of $1,685 is a very good opportunity to buy a put option for the rest of the week.

    (click to enlarge)

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