Date: 2017-01-23 19:43:25
Bollinger Bands – Path to $1,000,000 Day 4 – $12,000 – Binary Options Strategy
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Bollinger Bands are a helpful indicator for binary options traders due to the fact that they detail the current volatility level within the marketplace for specific assets while trading using the binary options strategy. Bollinger bands indicator is not typically used as part of a detailed strategy, but by pinpointing higher or lower levels of volatility it can help traders decide the correct strategy and instrument to use. This ability alone makes it an extremely valuable tool for anyone who hopes to profit from asset price movement.
Bollinger Bands consist of two bands and one Simple Moving Average. A price chart, such as MetaTrader4 will need to be used in order to view this indicator. Viewing and understanding these bands is very simple as well as using this binary options strategy. The closer they are together, the less volatile the market is. This can indicate that the price will soon start to move strongly. The further apart they are, the more volatile the conditions. This is not necessarily a bad thing, as the asset price could be strongly moving in a single direction, which makes movement prediction an easier task using this binary options strategy.
Advantages include the fact that even new traders will be able to clearly understand what this binary options strategy means when the bands are close together or far apart. Bollinger Bands can highlight large price movements very accurately. When used along with other tools or indicators, they can give traders some sense of the upcoming direction of movement of bollinger bands. Lastly, there is no cost to use or view them, so long as free charting software is being used. Typically, they are cannot be viewed within the price charts provided by most binary options strategy brokers.
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