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Binary Options Trading Based On Volumes

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The most common of the ways to select whether to select the “Call” or “Put” option on the trades is by choosing to go by the trade volume of the asset that you are trading with. This trading method is the most common of all because of the beginner’s intrigue to go with the flow. What the majority of market is trading at, this is of course the very first instinct of the beginner trader as following the lead of every other trader. Although it may prove successful but this method is not without it’s backfires.

Before going with this trading method in your binary options trading you should put in sometime understanding volume based trading method and establishing an opinion by not only going through the data of your selected asset but also going through different assets that are available to trade to establish a good opinion and understanding how the whole market opinion goes with volumes. With that you should look outside the data provided by your broker.

The next step you should take after establishing an opinion on volume based trading is to go through the hourly candle trading chart and find the spots of the extremes i.e. bear and bull market.

Then the next step involving the previously collected data from the candles, you should average both the high and lows of the asset you are trading. Connecting both the high and lows with horizontal lines you can place “Call” and “Put” trades depending on the trend of the chart. The trend will help you determine the overall look of the market i.e. whether it is going towards the low volume territory or the high volume territory.

Volume trades are important as they can be very useful when determining the patterns of the charts of to find out the trends of the assets. When making decisions on your trades whether to “Put” or “Call” the trade depending on technical analysis, the volumes play a very critical role in devising a plan. It also plays a vital role in analyzing the price alterations that are based out of high volumes which are on average connected more to indicating a trend reversal.

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