How to read Binary Options charts

Binary Options Charts are an important tool for traders. Indications can be found on the charts that tell Binary Options traders when to buy or sell, allowing them to take advantage of price fluctuations and make money in trading. When you read Binary Options Charts, you will see different colored lines moving across it that depict changes in price during a specific period. Some of the lines that appear on charts are blue to indicate uptrends (price is increasing) and red for downtrends (price is decreasing).

Binary options charts have not always been of high quality when delivered directly from brokers, as we shall see in further detail below. This is changing, especially with established CFD and spread betting firms entering the binary options space.

Some brokers like Quotex currently offer high-quality binary options charts for traders. The aim is to make accurate financial analysis available for traders and help them to access high-quality graphical tools at their disposal. As a financial software developer, they understand the importance of delivering the best possible experience for their customers and users. 

Ouetex offers free charting software that is excellent for binary options analysis as it allows users to place these assets on the same charts.

The BinaryOptions.net charts team has also been producing some high-quality charts of their own, with the view to offer traders a variety of choices as to what type of chart they prefer to trade from. Charts are very important as different users have different preferences as to what type of chart they choose. 

Types of binary Options chart

Charts come in a variety of styles and shapes. You may be surprised to learn that there are several distinct varieties of charts available. The more information you can pack into a chart, the better. There are three main types of Binary Options Charts: 

Line, Bar, and Candlestick. They all show different information about the price change, allowing you to have a better understanding of the market and make better decisions when it comes to trading. Learning how to read Binary Options Charts can be challenging at first – but once they become second nature, you will be able to recognize patterns and trends and predict price changes before they happen.

1. How do I use a Line Chart?

A line chart is simple enough to understand. It is like one long line that represents the movement of price over time. 

There are two lines on this chart: a blue (or black) line and a red (or pink) line. The blue (red) line shows you how much the price increased (decreased), while the red (blue) line illustrates how much the price fluctuated.

A line chart is used to track price change over an extended period; it shows the fluctuations in the market (both up and down) which you can use as indications when making trades. The main thing you need to look for when using a line chart is the starting point of your trading. By looking at where this point is on the line, you can estimate how much money you have if your trade ends in a successful outcome.

For instance, prices can fluctuate from point A, say 1221 to point be say, 1412 within six months. A blue line  can be used to show a steady increase in price while the red line can reveal a downward trend at various intervals throughout this period. 

2. How to read Binary Options Charts: Bar Chart

OLHC Price Bar - Forex Chart

A bar chart is similar in form and function to a line chart, but it offers more information. It is made up of columns and you will see the opening price in the left column and the closing price in the right column. 

Bar graphs are useful for displaying discrete quantities, such as prices. Candlestick charts, on the other hand, allow you to view continuous data in a manner that mirrors how traders talk about market conditions. Bar graphs are a typical way to compare different periods, simply comparing the bars next to one another. 

However, without any additional information, they’re only useful for making comparisons between discrete periods. A bar chart is a little more difficult to understand. It displays the opening and closing prices as well as highs and lows. A trader may identify the price range of each period by utilizing bar charts.

Bars might change in size from one bar to the next or across a range of bars. The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid. As a whole, the vertical bar displays both a currency pair’s trading range and its total range. The bars get larger as the price fluctuations become more volatile. The bars get smaller as the price changes become less violent.

3. How to read Binary Options Charts: Candlestick Chart

Binary options charts - candlestick

Candlestick charts are a type of graphical display that combines elements of line and bar graphs to provide more information than is possible in a basic chart. The top and bottom thin bars that display the day’s highs and lows, as well as the opening and closing price, provide the name “candlestick.” In a basic graph, the candles are placed in per-second intervals. However, with every unit of time represented by a new ‘candle,’ each candle is unique. The wicks and more importantly their length relative to one another can give additional insight into trader sentiment.

Candlestick charts are very useful because they give you an overall visual representation of price action, especially when you are using oscillators. Each candlestick shows the opening price, closing price, and the low/high of that specific timeframe. They also show the trading range between high and low prices or how much price fluctuated within a certain time frame.

There are two types of candlesticks: green for an uptrend (price is increasing) and red for a downtrend (price is decreasing). You will notice that there are no lines or columns in a candlestick.

Candlestick charts are ideal for traders because they allow the most amount of information to be represented in a small area. Bar and line graphs are wonderful for certain tasks, but no other chart type can contain the same amount of data in such a tiny space. Furthermore, these charts may be colored easily, allowing you even more knowledge of what happened during the day.

fig 3 compare

Source: FreeBinaryOptionsCharts.com

4. How to read a Point and Figure Chart

A Point and Figure chart differ from all other types of charts in that it doesn’t show the price volatility. Instead, it is used to detect the direction in the market by focusing on support and resistance levels in a less cluttered environment. Each X or O represents one point, increasing or decreasing depending on the trend. Each box represents a certain unit of vertical space and the boxes are arranged in columns, but no horizontal lines are connecting each column.

Where can I get more charts?

One thing will stand out in a harsh light if you’ve used any of the binary options broker platforms or are simply a novice who has browsed one or two: the lack of interactive charts. In the binary options market, charts are at the heart of technical analysis. Without charts, there would be no way to determine whether or not assets are worth trading, and without study, the trader would be essentially gambling.

Most traders use Excel for charting, but there are several other options available. Most brokers provide charting tools through their trading platforms to make it easy for clients to access this information while trading assets that have intraday price movements.

Here, we’ll look at some of the locations where traders may buy charting software so they can analyze the markets and make money.

Chart Sources

Several websites offer free charting software that will allow traders to view the markets in real-time, watch intraday price movements and place trades accordingly. Charting for beginners is simple and can be done with a free version of TradingView. The trading platform offers buyers the ability to use real-time data, trade online, analyze markets, create portfolios, and even chart their currencies.

The downside of using these types of services is that they cannot be used for live trading because they require an internet connection to access them.

The two main types of charting are as follows:

1. Online charts

These are online charts accessible from the websites of certain brokerages and software developers. These charts generally provide little to no versatility in terms of interactivity or tools that may be used with them. It is not suggested that you utilize online charts for binary options trading. 

Downloadable charts 

Downloadable charts are those that may be downloaded as part of forex trading platforms or as standalone software plug-ins.  They’re ideal for analyzing assets for binary options trading since they include a slew of tools to improve analysis results. They are the recommended chart software for binary options analysis. Some of the charting APIs will provide free access to the charting tools. Some are completely free, but they will require specifically paid plug-ins to function, while others will be included in a package that must be paid for 100 percent. The following are examples of downloadable forex charts that may be used for binary options analysis:

FreeBinaryOptionsCharts.com

Traders should note that the FreeBinaryOptionsCharts.com website provides a simple (and free) binary options chart. They also have a helpful guide for novice traders on how to use binary options charts. Mifune is the site’s owner, so the strategy pieces are of excellent quality.

Forex Charts Widget v1.7

The Forex Charts Widget v1.7, created by Chris Craig and freely available on Softpedia, is a charting program that allows you to see the currency charts for numerous pairs. The user will be able to pick the time frame and use a collection of indicators provided with the plug-in.

MT4 Charts

The MetaTrader4 software is probably the most useful resource for free charting information and dynamic charts. This platform is accessible from nearly every market maker forex broker on the market. However, there are a few that stand out because of their more extensive asset index, which matches the binary options asset index.

To limit the amount of data you receive, we recommend using a broker with more than 40 currency pairs, all major stock indices (or at least 8), and equities on the MT4 platform.

My FX Dashboard (from OFX)

The OFX forex charting solution enables traders to create lines studies, utilize indicators, and more. This program is not downloadable but is a web-based Java-enabled application that allows users to toggle between basic and advanced charts. This software is coded in EasyLanguage, which FXCM uses. You can use it with other programs to trade.

MultiCharts

In partnership with TradingView, MultiCharts is a downloadable chart program that provides high-definition forex charts on 30 different currency pairs. The charts also have a web version. Traders can choose from a variety of time frames that range from one minute to one month. MCFX’s MultiChart charting and trading platform is a powerful package with an unusual ODM chart trading function, that zeroes down on the precise price that a trader intends to perform his trade on, tags it and utilizes the data to remember the trade if a lag in time occurs between signal generation and trade execution.

2. The interactive broker’s information system

The interactive broker’s information system provides you with the ability to use any of the following three free charting software providers. These are eSignal, TradingView and MetaStock. The Interactive Brokers platform also has its own proprietary options analysis tool for their traders which is provided by Amibroker.

E-signal

E-signal is proprietary software that is used by traders and investors to monitor the markets. The company offers a proprietary programming language and API (eSignal Connect) that can be utilized by algorithmic trading for automated strategies.

TradingView charts

Tradingview offers free charting software that is excellent for binary options analysis as it allows users to place these assets on the same charts.

MetaStock

MetaStock is a useful and high-quality software for use by traders and investors interested in the technical analysis of assets. These types of free tools are excellent for binary options analysis because they allow users to place various assets on the same chart, which saves time looking for multiple graphs when analyzing assets.

Amibroker

AmiBroker is proprietary software that can be used to trade stocks and commodities, but it also includes several charting tools. It’s an extremely powerful tool for traders as it has a slew of technical indicators. The biggest downside is that there are no free versions offered for the program, as they must be purchased in full.

MetaTrader4 Charts

The following charting software may be used for binary options analysis:

MetaTrader4 (MT4). The platform provides excellent charting options that allow users to place these assets on the same charts with ease, and it is accessible through numerous market makers’ forex brokers.

Trading Station

TradeStation is proprietary software that may be used to trade stocks and commodities. It’s an extremely powerful tool for traders, but it also has a slew of charting tools. The biggest downside is that there are no free versions offered for the program, as they must be purchased in full.

NinjaTrader

NinjaTrader is powerful and customizable charting software that can be used to trade stocks and commodities. The software has its built-in library of technical indicators, but it also allows users to add their indicators if they desire. One downfall to the platform is that there are no free available downloads for the program (a full purchase is required).

MetaStock Professional Charts

MetaStock Pro is a high-quality software for use by traders and investors interested in the technical analysis of assets. The charting tools on the platform are very powerful and easy to use, making it an excellent option for binary options charts.

NinjaTrader Strategy Builder

NinjaTrader is powerful and customizable charting software that can be used to trade stocks and commodities. The platform provides users with unique functionality, but it also allows users to build their strategy, which is an incredibly useful option for binary options analysis.

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