When I break down a pair before I start trading, where to begin? I start with checking out the weekly, daily and 1 hour charts related to finding out what price action direction is doing on doing time frames. Are the weekly, daily or hourly charts showing a call or put price action trend. Remember trend is your friend in trading, it is a lot easier to trade with trend, then against the trend. You need to always, be conscious of money management when trading binary options.
When looking a hourly chart, what can you learn without much time, effort or energy a lot. While this is what I see on, USDJPY hourly chart, attached to this article as following: big trend is call or up for last 10 days. Price action is above noted EMA's of 30,50 & 200, but price action is below the EMA 10 on hourly chart. Also, Bollinger Band squeeze or narrowing of price action happen at the end of trading on hourly chart. Also, RSI (with a setting of 5 & 75/25) trend line (you need to put this on yourself or own settings) has been broken, so a one hour trade put trade would have been indicated, related to trend being down (PUT) for the next hour and a lot safer then doing CALL trades. The RSI is an over bought and sold indicator, which shows you momentum of any pair at a given time period or time frame.
Also, draw a couple of major support and resistance trend line's above and below price action on chart. On chart are just two black trend lines ( I turn my candle charts quickly to LINE charts to draw all trend lines related to it being easy do and see and and to me truer trend lines too). Price action is still above lower black trend line at this time.
I mostly specialize in 5 minute trades & use the 1 minute charts, but occasionally do 15 minute trades using the 5 minute charts or 2 minute trades when the price action is right. You need to consistently be looking at higher time frame charts when trading short term, so you keep the MACRO picture in mind, not just the MICRO picture. Be safe when trading & grow your confidence by having a great foundation of knowledge of what you are doing.
When looking a hourly chart, what can you learn without much time, effort or energy a lot. While this is what I see on, USDJPY hourly chart, attached to this article as following: big trend is call or up for last 10 days. Price action is above noted EMA's of 30,50 & 200, but price action is below the EMA 10 on hourly chart. Also, Bollinger Band squeeze or narrowing of price action happen at the end of trading on hourly chart. Also, RSI (with a setting of 5 & 75/25) trend line (you need to put this on yourself or own settings) has been broken, so a one hour trade put trade would have been indicated, related to trend being down (PUT) for the next hour and a lot safer then doing CALL trades. The RSI is an over bought and sold indicator, which shows you momentum of any pair at a given time period or time frame.
Also, draw a couple of major support and resistance trend line's above and below price action on chart. On chart are just two black trend lines ( I turn my candle charts quickly to LINE charts to draw all trend lines related to it being easy do and see and and to me truer trend lines too). Price action is still above lower black trend line at this time.
I mostly specialize in 5 minute trades & use the 1 minute charts, but occasionally do 15 minute trades using the 5 minute charts or 2 minute trades when the price action is right. You need to consistently be looking at higher time frame charts when trading short term, so you keep the MACRO picture in mind, not just the MICRO picture. Be safe when trading & grow your confidence by having a great foundation of knowledge of what you are doing.