Binary options customer support and resistance
This kind of behavior will reveal that inclination towards selling is more than buying. The rationale behind Resistance theory is that as the price comes closer to Resistance level it tends to be higher and higher making sellers more likely to sell their products.
However, as the prices rise so much buyers will be less inclined to buy and hence another situation where sellers will outdo the buyers will be created.
Here, the price will be prohibited from going upwards. Just like Support, Resistance may also not hold its ground in all situations. The buyers can win over the sellers and when the Resistance is broken, the buyers will be more than willing to buy at higher prices and the prices will not come down easily.
In a nutshell, the traders who precisely understand the rules of Support and Resistance levels perform better in the market as they have more confidence and understanding power to manage their portfolios for easy gains. Your email address will not be published. How to use our strategies from Best-Binary-Options-Strategy. Support and Resistance Strategy.
Leave a Reply Cancel reply Your email address will not be published. Types of Binary Options Strategies. Strategy categories 15 minute strategies 2 minute strategies 30 minute strategies 5 minute strategies 60 second strategies All Binary Options Strategies Hour strategies News Other strategies Technical Analysis Strategy.
The best strategies in one place. We take into consideration these two types a lot. As the name implies, in this case, we will buy an option hoping that the price will not break the level and will unfold. Many traders buy binary options strictly at important price levels. Such trading approach is wrong, because technical analysis is not exact science, and it is impossible to identify the specific price level up to a point.
Therefore, it is necessary to wait for confirmation of a rebound from the level in the form of completely closed candle below important price level. It would be better if this candle has a long body. We see on the chart, the price is touching the red resistance level and a bullish candle with a long body closes directly at this level.
Is it a signal for Put option deal? No, because there is no evidence of level breakout, nor rebound. We are still waiting for the next hourly candle closing. Then we see that the next bullish candle also does not give us a clear signal. It is only after another hour, when we see that the market determines the direction bearish candle with a long body.
At the close of that candle, traders should buy a Put option with expiration time of hours. Unfortunately, support and resistance levels do not always become an insurmountable obstacle for the price. Very often a breakdown of these levels occurs.