Oren Laurent
BBinary.com CEO
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Technical analysis plays a big part in the success of some binary options traders. And the level of success sometimes depends on how accomplished they are at reading and understanding charts.
Price charts can be used to track movements on all types of underlying assets, whether market indices, individual stocks, currency pairs or commodities. Different types of chart are available, such as line charts, bar charts and histograms, but will all generally plot the price of an asset by time or volume. However, whatever its type, a chart is considerably more useful if it contains up-to-date data, such as the real-time prices that Banc De Binary posts on its website (Banc De Binary - www.bbinary.com | Online Binary Option Trading | Binary Option Broker | Digital Option Broker).
Time Price Charts
The most common type of price chart plots movements over time. Choosing the time intervals for a chart will depend on the type of trader you are. If, for example, you undertake short-term trades, you may plot price changes at 60-minute intervals or less, enabling you to see and predict likely price movements in periods of one hour at most. If you go for longer-term trades, you may mark changes at daily, weekly or other suitable intervals.
For the longer time periods, you may wish to see the open price at the start of the period, the high and low prices during it and the close price at the end of the time interval. You can, therefore, choose a chart type that allows you to see all price levels within a period.
Volume Price Charts
Another type of price chart plots movements by volume. These are particularly useful when trading volumes are not consistent, possibly falling to low levels during the night. For this type of chart, a price level is plotted after a number of contracts have been made or a certain volume of commodity has been traded, rather than plotting at set time intervals. The effect is that the chart has fewer entries during periods of low activity and so focuses more on times when levels are more normal.
Either type of chart provides valuable guidance for binary options traders, providing its data is current.
Price charts can be used to track movements on all types of underlying assets, whether market indices, individual stocks, currency pairs or commodities. Different types of chart are available, such as line charts, bar charts and histograms, but will all generally plot the price of an asset by time or volume. However, whatever its type, a chart is considerably more useful if it contains up-to-date data, such as the real-time prices that Banc De Binary posts on its website (Banc De Binary - www.bbinary.com | Online Binary Option Trading | Binary Option Broker | Digital Option Broker).
Time Price Charts
The most common type of price chart plots movements over time. Choosing the time intervals for a chart will depend on the type of trader you are. If, for example, you undertake short-term trades, you may plot price changes at 60-minute intervals or less, enabling you to see and predict likely price movements in periods of one hour at most. If you go for longer-term trades, you may mark changes at daily, weekly or other suitable intervals.
For the longer time periods, you may wish to see the open price at the start of the period, the high and low prices during it and the close price at the end of the time interval. You can, therefore, choose a chart type that allows you to see all price levels within a period.
Volume Price Charts
Another type of price chart plots movements by volume. These are particularly useful when trading volumes are not consistent, possibly falling to low levels during the night. For this type of chart, a price level is plotted after a number of contracts have been made or a certain volume of commodity has been traded, rather than plotting at set time intervals. The effect is that the chart has fewer entries during periods of low activity and so focuses more on times when levels are more normal.
Either type of chart provides valuable guidance for binary options traders, providing its data is current.
