Spotting profitable binary options trading opportunities

High probability trading setups happen each and every day for thousands of binary options trader who are able to spot these profitable opportunities. Both fundamental and technical traders are able to look through the noise generated by the markets to define their entry the best expiry time for their options. Whether a trader basis their analysis and rationale on a certain news release, chart pattern or support level, those who can develop their skills to recognise these increase their potential to become successful long-term binary options traders. By choosing one particular setup, and combining this with the patience to wait for it to appear, a trader can develop profitable trading habits.

Chart patterns and trading setups

Looking for high probability chart patterns is one of the most popular methods that successful binary options traders make profits in the markets. Just learning a handful of technical patterns and their meanings takes little more than a couple of hours but can be incredible useful for many binary options traders. Of the most popular, the so-called ‘reversal’ patterns which tend to indicate that price is about to swing in the opposite direction to its current trend are often some of the most profitable for binary options traders. These can be easily researched for free on line and include patterns such as ‘double tops and bottoms’, Head and shoulders and trend line breaks. Within a few minutes of learning how to spot these patterns, traders will be able to apply these to any price chart and see where the profitable opportunities lie.

Spotting profitable news trading opportunities

How many times have you been watching the markets and price suddenly leaps in one direction or another? The chances are that some significant information has hit the market and caused a huge demand to either buy or sell the underlying asset. News traders can position their binary options trades based on this news and those who are both quick to react and anticipate the direction of major news releases can generate substantial profits. Even for those who cannot purchase options at lightning speed, the momentum generated by the news release often provides time for traders to position themselves favourably for the market correction once the ‘news spike’ comes pulling back towards where it began. For binary options traders, the market correction following such a leap in price, even if only very subtle, can provide a quick 85% return on the initial binary options purchase.

Support and resistance offer high probability setups

Binary options traders have the distinct advantage that they can bet on price moving higher or lower without the necessity of a stop-loss. For support and resistance trading this can be particularly useful in betting on the probaility that price will reverse at these points. Spotting a strong support level, for example, allows binary options to be purchased at, or close to, this level in the opposing direction. The probability is that the support will be maintained and the options will expire higher than the strike price as price bounces up. However, if price crashed through this level, there is an even higher likelihood that price will return to test the old support level (which will now have become resistance to moves higher). When a support or resistance level setup fails, it very often provides the opportunity to close early at a minimal loss, or simply hedge the position in the opposing direction when price returns to the original strike price.