How to Use Candlestick Charts to help you with your Trading?
If you have used any of the binary options trading platforms out there, one thing that stands out very clear is the paucity of interactive charts. Many brokers offer charts that are too basic and which cannot be used for any meaningful analysis. Line charts are what you mostly have on offer.
To perform sound technical analysis, a trader needs interactive charts. Interactive charts are charts that you can add some input to and get answers, not charts that you can only stare at and they stare back at you in return with nothing to deliver in terms of information. Put another way, an interactive chart has to be able to interact with the trader; some sort of two-way communication. A trader should be able to add indicators and other tools of technical analysis and get information about the hottest trade for the moment. The trader should be able to look at the chart even without adding any tools and see something that will light a trading fire in him. Those are what interactive charts are all about.
30 Minute Candlestick Chart for Euro/USD
How to use these Candlestick Charts?
Against the backdrop of what has been said above, these interactive charts afford the binary options trader advanced charting capability that is not present on any of the binary options platforms available online.
What can binary options traders look forward to with this web-based interactive chart widget?
Firstly, the Investing.com charting tools are web-based and therefore the trader does not need to start downloading anything. This is where this charting tool has an advantage over the charts from forex broker platforms. Traders who live in areas where internet services are rudimentary will benefit immensely from this.
Then there is the asset index covered by this charting tool. Traders can get access to advanced interactive charts for hundreds of currency pairs.
Apart from this, the trader also has the option of changing the look of the charts in a number of ways. The time period of the charts can be changed by selecting from the 6 time frames (5 minutes, 15 minutes, 30 minutes, one hour, 5 hours and 1 day) on display. The chart type can also be set at the trader’s discretion, with the possibility of choosing line charts, bar charts or candlestick charts.
The most interesting feature is the element of being able to conduct technical analytical studies of the assets on display, with the trader being able to use the zoom tool to zoom in and out of different sections. New studies and indicators can be added and removed from the charts at will. Indicators such as the Relative Strength Index (RSI), MACD, moving averages, Bollinger Bands and the Fibonacci retracement/extension indicators are all available for use in conducting technical analysis. Traders can create systems, conduct and save their own studies and develop strategies for trading the binary options market.
The presence of various time charts also allows traders to study how to estimate expiry times. This is a key element of trading the binary options market. By understanding that a single candle represents the price activity for the time period in view and by using the tool which counts the number of candles in a sequence, traders can conduct studies to determine how best candles can be used to gauge expiry times.
The possibilities are limitless with the interactive charting tool from Investing.com. If you have been in quagmire over how to conduct technical analysis because your binary options broker lacks good charts for such, it is now time to wipe away your tears and make use of the this tool for all your chart studies, strategy development and technical analysis in the binary options market.