Importance of Support & Resistance In Binary Trading

If you have been trading, you will know that the market is always moving in the form of waves. However most traders do not know how the waves is actually formed.

So I will like to use this post to illustrate to you guys the formation of the waves as it will be very useful for your trading.

So What Actually Causes Those Waves

The waves are the results of repulsion against levels of support and resistance.

SandR

So What are those Support and Resistance

There are various types of support and resistance and I am going to highlight them one by one in this post.

However I will write a detail blog post on each type of support and resistance in my other post as it will be too lengthy.

1) Major Swings

Major Swing

2) 200 EMA

downtrend ema

3) Fibonacci Retracement and Extension Levels

fib

4) Pivot Level

pivot

5) Bollinger Bands

bb

Personally I find these 5 types of support and resistance levels the most effective.

Whenever the price hits these levels for the first time, it will be repelled by it.

Whenever the price breaks through the level, it will form a new level of support and resistance.

For example, when you see the price breaking a level of support, the old support will now turn into a new resistance.

new resistance 2

So How Does Understanding S&R Help You In Your Trading

Now that you know where are those levels of strong support and resistance, you will be able to wait for the price to hit those levels for the first time and then enter a binary trade based on the repulsion.

Note that there will be more risks when the price hits the same level again as there are 50-50 chance where the price will break through it.

Therefore I will suggest that you only trade the repulsion based on the first repulsion. However in order to increase your probability of winning, you will need to make use of other indicators and techniques to do so.

Therefore I will suggest that you read my blog post on How to formulate your own strategy to formulate your own strategy.

A personal advice for those of you who are still trading without a strategy, you are going to lose all your money in no time. There is no way anyone can make money from trading binary without a proven strategy.

I hope that you guys find this post useful and if you have any question regarding binary trading, do feel free to contact me via the link at the side of this blog.

For those of you who will like to see exactly how I trade everyday, please click on the link below to see how you can gain FREE access to my Live Trading Room

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For those of you who are interested to learn the exact strategies that I am using to trade everyday, please click on the link below for more information about my course.

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Disclaimer

Binary Options carry a high level of risk to your capital due to the volatility in the underlying market. These products may not be suitable for all investors. Therefore, you should ensure that you understand the risks and seek advice from an independent and suitably licensed financial advisor.

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