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The Nasdaq’s Latest Movements And What’s Behind Them


The Nasdaq Composite recently entered into negative territory for the year, due to China’s economic crisis. Towards the end of September, the Nasdaq stood at 4734.48, about a point and a half below its 2014 close of 4736.05.

In addition to China’s economic slowdown, investors have been concerned about the slump of the stock market and Volkswagen’s energy emissions crisis. As the charts indicate, the Nasdaq Composite has been in danger of falling back into corrections mode.

Analysts have been pessimistic about any signs of an upturn, with stocks across the board on a negative trend.

Bearish market

Since the Nasdaq Composite is a technology-weighted market, Apple and Microsoft - its 2 biggest constituents - play a major role in its momentum. The Nasdaq, with the current movements, has been showing a bearish bias.

Slow global PC shipments and another possible retrenchment in capital expenditure spendings have made it difficult for the technology market, despite it having weathered the previous crisis relatively easily.

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.

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

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

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