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What is the Parabolic SAR

The Parabolic SAR is a technical analysis indicator that is able to identify the momentum of the price of an asset, in other words, the direction of the master trend. The parabolic SAR was originally created by Welles Wilder. Review popular binary options brokers: Banc De Binary Scam.

Let’s see how can we can trade Binary Options using the Parabolic SAR. Let’s suppose a trader choose to trade EURUSD in a short-period time frame. Here is a EURUSD 1-minute chart.

Chart: Parabolic SAR on EURUSD

Binary Options Strategy: Trading using the Bollinger Bands

The Bollinger Bands is a very popular technical analysis tool to trade binary options. A trading strategy that is based on the Bollinger Bands is suitable for trading High / Low Options.

 

What are the Bollinger Bands?

Bollinger Bands is a tool created by John Bollinger during the ‘80s. Bollinger Bands and their related indicators can be used to measure the current market conditions compared to previous market conditions. They can measure in other words the ‘Highness’ or the ‘Lowness’ of an asset price relative to previous closings. Using the Bollinger bands, binary options traders are able to identify assets that have already reached their short-term price limits and that are expected to move in the opposite direction in order to correct and to absorb the broader current price levels.

 

Bollinger Bands Formulation

Three (3) curves are included in the Bollinger Bands model.

◘ The Middle Band calculates a moving average of an asset during a period T.

◘ The Upper Band and the Lower Band which are found on a specific distance upper and lower of the Middle Band. That distance is equal twice (x2) the standard deviation price for the period T.

 

Standard Settings of Bollinger Bands Tool

The standard setting for the period T of the Bollinger Bands is 20 periods. Traders according to the past behavior of each financial asset they may adopt the Bollinger Bands period settings to less or more than 20 periods.

Binary Options Strategy: Following the Trend Strategy

This is the most popular among binary options trading strategies no-matter the expiry time frame. By following the current trend, traders are able to maximize their profit potential.

What means Following-The-Trend?

First of all, there is not just a single trend of a traded asset. At any given time, a financial asset is the subject of many different price trends. Each trend is deriving from the time horizon which a trader is using. Any different chart time frame produces a different trend. For example, the 1-minute chart may produce a very bullish trend while the 15-minutes chart to indicate a highly bearish trend.

 

Technical Analysis Tools to Identify the Trend

There are tens of popular technical analysis tools to identify and evaluate a market trend. The most common technical analysis tools are:

◘ Moving Averages

◘ The MACD

◘ Relative Strength Index (RSI)

◘ Parabolic SAR, and many more

Most binary options traders are based on their own system to predict future market movement, but other traders seek the effectiveness of a signaling service. Trading using a signaling service has become a popular way to trade binary options.

 

What Information is Included in a Binary Options Signal

Binary options signals may target any kind of financial-traded assets, including Forex currencies, Shares, Indices and Commodities. A binary options trading signal contains the following information:

1) A financial asset which is identified to be in oversold or in overbought price levels

2) A strike price to buy it

3) A target price

4) The duration of the contract (expiry time)

 

How much a Binary Options Signals Service Cost

A signaling service may be offered for free or even cost hundreds of USD monthly in subscriptions. Usually paid binary options signals to cost about 60-100 USD per month.

 

► Find here how you can create your own custom Binary Trading Signals

Gold status in 2014 According to Analysts


Because of the volatility of gold markets this year, investors and traders are thinking twice about the presence of the precious commodity in their portfolios. Should they retain the metal, or venture into something else which doesn’t fluctuate as much? Yet, everyone knows there’s no certainty when it comes to financial security, so as much as possible, experts still insist that diversification is the best way to go—and gold is still the best option for diversifying a portfolio as its prices don’t follow the trend of other assets which downgrade all at the same time. As the year draws to a close, are things looking up for gold?

Even though the future brings unpredictability, trends in the markets may somehow forecast the state of the commodity for 2014. The majority opinion is apparently still positive. Forex and financial trading blog in a recent post stated that gold still has strong fundamentals, and concluded that “gold is improving by the day.” Despite downtrends in the near-term, longer-term picture may more likely see the metal on the rise. Adrian Ash, head researcher of, shares this optimism in his fresh analysis. The clamor for gold investments will gradually be revived along with the “robust demand from Asia”, according to his article.

To answer the aforementioned question, therefore, it would seem that the metal is surging. This is precisely what {Business Insider} currently reported while noting that the metal experienced a pitch forward, especially from the North American trading market. The Business Section of The Australian, while acknowledging that some gold stocks are likely to have a dim future, global gold output remains strong. In the article, Morgan Stanley was quoted saying that “when margins are depressed, any movement in the gold price will have a strong multiplier effect on equity price valuations.”

 

Gold status in 2014 according to Analysts

TradingCenter.org, December, 9th 2013

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