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STRATEGY 1 of binary options. Catching a Trend

        Trend is price movement in a certain direction, when the price (rate) is rising or falling during a long period of time.

There are different types of trends: down trend (pic.1), up trend (pic.2), and sideways trend (pic.3).

DownTrend

     

At picture 1 above, you can see a down trend which shows that the price has been falling for a long period of time.

As you can see in the chart, with each fall the price reaches a lower level, and with most rises it stops lower than the previous rise level. The longer is the trend, the higher is the possibility of the price continuing to fall. So, you can predict that the price will go down.

Note that price movement is affected not only by trend durability but also by the number of times the price tried to break through the level of support (the upper line in the picture) and the number of times the price failed to break through it. The more failed attempts, the more steady is the trend.

                  

UpTrend

          In picture 2, you can see an up trend with price going up steadily.

As you can see from the chart, with each rise the price reaches a higher level, and by most falls it stops higher than the previous fall level. The longer is the trend, the higher is the possibility of the price continuing to go up. So, you can predict that the price will rise.

Note that price movement is affected not only by trend durability but also by the number of times the price tried to break through the level of support (the lower line in the picture) and the number of times the price failed to break through it. The more failed attempts, the more steady is the trend.

My tip: this strategy is effective for 5-munite predictions, because it is highly probable that during the next 5 minutes the situation in the marker will change. To achieve maximum result, I used this strategy with Strategy №2 (Trading by Using Trade Signals).

 
        

In picture 3, you can see a sideways trend. The price is fluctuating somewhere in the middle and has no certain direction. In this case, it is highly probable, that your prediction will be incorrect and you shouldn’t make predictions relying on a sideways trend.

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