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5 Binary Options Trading Methods On IQ Option

July 10, 2017

Your capital may be at risk. This material is not investment advice.

 

Because of their unique nature, IQ options are one of the best binary options widely used in South Africa trading market. IQ option has been developing steadily since its inception with a lot of success for South African traders.

 

IQ option allows South African traders investing in binary options to apply several tricks and methods that can improve their trading to profit from binary options trading. It is becoming more efficient, more user-friendly and can easily be used by anyone trading in binary options.

 

The following two terms are widely used in binary options trading methods on IQ options in South Africa.

This is a chart that shows opening and closing prices of assets. In South Africa, an increase in an asset price is indicated by a green candle, and a fall in an asset price is represented by a red candle.

 

Trend lines

These are lines showing the upper and lower values of how an asset is trending. There is a line showing an upper trend and another line showing a decline in the trend. The upper line is known in trading as the resistance level of trading, and the lower or bottom line is known as the support line.

 

There are many IQ options methods that can help anyone trading in binary options, open new ways to get success without risking too much. Some of these methods are:

 

1. The three black crows trading method

This is a method that focuses mostly on the reversal of the trading trend. Also known as the bearish and bullish trends, this is how the black crows method works.

 

Firstly, the South African trader identifies an asset which has candlesticks that display a certain direction price movement. Wait for that movement to move in reverse. You know this is happening when there is a fall in price on the candlesticks. When you see the trend reversing, this is a good time to start trading. The three black crows trend signals when the trading is weakening. It is shown by the uptrend and when it is impending, it is shown by the down trend.

 

2. Rebound trading method

This method focuses mostly on trend lines and does not dwell so much on the price. The most important thing here is to be sure of the price below and above the upper and lower trend lines. If the asset’s price moves away from its line and does not break the trend, consider this as a signal and place PUT trade only if the asset price closes before its level of resistance. If South Africa trading price closes above the support level, you can place a CALL trade. The rebound method is important because it shows the trend and the direction of all future price movements. It also determines whether the trend is strong or not as well as defines the trading points of entry.

 

3. Rainbow trading method

This is a method that uses more rapid averages. The trends of the averages are used with time periods that are different. The first row on the chart is marked in blue and has a period of 6 needs. The second row on the chart has 14 needs and is marked in yellow as for the last line with 26 needs, it is marked in red. This is how the lines are displayed when there is a fall in the price:

 

    The blue line is displayed on top of the red and yellow lines

    The red line is displayed at the bottom of the yellow and the blue lines

    The yellow line is displayed right above the red line and right below the blue line

 

When the yellow and blue lines intersect, this is the most appropriate time to place the PUT trade.

The following illustrates how the lines are displayed when there is a rise in prices.

 

    The blue line is at the bottom

    The yellow line is in the middle

    The blue line is above the red and blue lines

 

The best time to place a CALL trade is when there is an intersection of the blue and yellow lines.

 

4. Demo account trading method

A demo account allows you to test all the aspects of the trading market with play money before trading with your real money. This will ensure that everything runs out smoothly without the fear of losing any real investments. It also gives you the chance to get a real account like you would if you were trading with real money. You also get the same brokers and all the binary trading options available in the market.

 

This IQ trading method will help you develop your trading skills, and you will not be at risk of losing anything. Until you are comfortable to trade with real money, the demo IQ account will give you the much-needed experience.

 

 

Conclusion

Any South African trader can use the above methods to maximise their profits in binary options trading. Get to know what IQ method works best with your trading options before you start trading.

 

It is also good to know about all the other methods in the market you can use for trading. Read intensively and talk to more experienced traders.

 

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