In the previous post ‘The Differences…Fundamental & Technical Analysis’ we uncovered the basics of what these two forms of analysis are and why they are used by traders.
We also learnt why Binary Options traders preferred using technical analysis tools and indicators when trading.
And as you may recall, technical analysis is essentially the study of an assets price and if it has gone up or down in value in the past.
And as we also learnt, proponents of technical analysis believe that the rising and falling in price of an asset doesn’t just happen randomly but due to the supply and demand of the asset in question.
Fortunately as Binary Option traders we don’t have to worry too much about the how and why of technical analysis, rather we just need to be aware of the patterns which an asset price can exhibit over time.
As such, we can therefore spot if the price is going through another pattern and by doing so, we can build a probable hypothesis on how the price will go in the future!
So let us now look at a few of the main price-movement patterns which Binary Option traders look out for.
To read the rest of this article, please click here