Every person who is interested to earn money with binary options has the initial task to learn how to make accurate predictions in binary options, so that they were profitable. This walkthrough will describe the easiest way how to predict the movement of such assets as stocks, currency pairs, indices, commodities (futures).
It is quite difficult to predict the direction of prices for all assets, since there more than 180 of them in binary options market.
Now there are two kinds of forecasting of price movements of any asset:
- Automatic. The program, according to certain algorithms based on the number of indicators determines the movement of the asset;
- Manual. A trader performs technical analysis, and based on the work that was performed, determines where will the price of the asset move in the future.
- 1 Technical and fundamental analysis as the basic tools in the preparation of the forecast for binary options
- 2 Predictions for different types of assets
- 3 Example of trade on predictions
- 4 The forecast is the opinion of the analyst
Technical and fundamental analysis as the basic tools in the preparation of the forecast for binary options
The predominant number of analysts believe that it is not quite right to rely on one type of analysis, determining, in what direction will the price move. They explain it this way: fundamental analysis gives an opportunity to pinpoint where will go the price in the long term.
Suppose the U.S. economy shows significant growth, so the currency pair, where USD is present will fall against the U.S. dollar. So we determined the direction of movement, for example, EUR/USD currency pair, which in the long-term prospect will decrease. The possibility of fundamental analysis, in fact, are exhausted here.
But you need to consider that before falling the EUR/USD pair will demonstrate fluctuations in the market up and down. Here technical analysis comes to the aid. In the short term our pair Euro/dollar may rise, not fall. Using technical analysis we can identify the figures formed on the chart, that indicators show (overbought or oversold), what patterns the price drew, and so on. In this regard you need to be savvy, and be proficient in tools of technical analysis.
Ideal way is to combine these two kinds of tools: technical and fundamental analysis. Because with the help of fundamental data we identify the global trend, and thanks to the tools of technical analysis, looking for the most favorable point of entry or exit from the market.
Predictions for different types of assets
We have identified the importance of technical and fundamental analysis for the forecast of a particular asset in the binary options market. Now, let’s move from words to deeds, that is, practice.
In our time it is not necessary to have a college education or years to learn technical and fundamental analysis. The main thing is clever approach to binary options forecast. Now we will tell you how to do it.
Above we mentioned that to predict binary options is now possible on the basis of the testimony of the automatic program. Below we will provide this program in free access.
Forecasts for currency
This widget shows a quite profitable predictions in binary options in real time. It is based on the testimony of the moving averages and a number of indicators. If you want to get accurate predictions in binary options, just refresh this page.
How to use accurate signals of the informer for binary options?
Below, you can see a screenshot of the widget that shows the direction of movement of currency in real time.
So, to get an accurate signal, we are interested in the best signals – “strongly buy” or “sell”. Moreover, this signal should be observed on all timeframes. In the example below in the red rectangle you can see such a strong signal for the currency pair USD/CHF. It is seen that for all the time intervals from 5 minutes up to one day, show a signal “strong buy”. So, choose the asset from your broker and buy CALL option.
Forecasts for indices
It is also possible to predict the future behavior of indices in binary options. Check economic calendar in terms of fundamental analysis of the currencies to which the analyzed index is directly related.
Also check technical analysis:
Forecasts for stocks
It is possible to predict not only indices and Forex currencies, but also stocks.
The advantage of stock trading with binary options is that if it rises or falls, it lasts for a long time.
In addition, you may check the news background.
Forecasts for goods
The overall trend for projected product (futures) can also be seen in the widget of technical analysis. When futures drops or increases, this phenomenon is long-lasting, all-day.
Statistics of purchases
On the Internet there are several large services that provide statistics on open positions. Statistics of purchases may be considered by the trader as a strong signal to sell or purchase, depending on interest on its increase or fall. For example, if the red graph indicates that 95% of traders who opened the sale, then it is likely that the asset will fall.
For example, the screenshot below shows the statistics of purchases for different currency pairs. Green means buy and red for sale. We see that the NZD/USD in the purchase there are 88% of traders, and only 18% for sale. So, it is likely that the currency pair will rise.
As you can see, there is nothing difficult, it is important to observe other traders and to act as the majority does.
Example of trade on predictions
So, we are very close to the main issue, how can we trade profitably with binary options according to the above forecast data.
First look at consolidated technical analysis :
On the screenshot, we marked strong signals “strong sell” and “strong buy”. It is important that these signals coincided in all time intervals. Then, the signal is at its strongest and you can start to trade with binary options. The expiration time 3-4 hours.
The forecast is the opinion of the analyst
Other people’s predictions should be treated with skepticism. Always check everything in practice, looking for evidence, and if they coincide with your opinion, it’s only 60% that this assumption will come true. To make good predictions of binary options will be able the one who will compare the data of technical and fundamental analysis and also will find the confirmation from the third-party assistants.