Thursday 26 January 2017

Wednesday 25 January 2017

How to Analyze a Stock Chart in Five Seconds, Following the News

How to Analyze a Stock Chart in Five Seconds, Following the News

If you watch CNBC you will probably be blown away with the amount of stock data data information that is shown and wonder how to analyze stock charts and get the useful stuff from that. Political news isn’t always so helpful because it’s often what they want you to know and not what is actually happening that is affecting the stock markets. If you take a little time you can learn for yourself what you need to know and how to analyze stock charts in five seconds.

Why Do We Use Stock Charts

If you follow the shows and magazines where you see the ups and downs of certain stock index or price, the chart will look a bit like this:
The reason why the stock scholars love this type of graph is because they are easy to follow and contain a huge amount of informational data. They truly believe that this historical information is all you need to predict which direction the stock is going to head. This is the technical analysis that pundits have used and debated over many years: taking into account the human elements of trading, can you actually predict from the past what the future will do?

Support and Resistance Levels

According to Wikipedia, which is the tomb of historical data on all subjects, over short time periods stocks do show clear indicators of levels of support and levels of resistance. In other words, support levels show a price that a stock can’t drop through and resistance levels are the reverse, where the stock price does not seem able to break out in upward turn.  This flow in trading often holds true until a shock piece of information or news breaks the bubble, at which time a new “trade line” begins.
Using the example below, it shows in more detail what was happening on the Google Stock chart in Fig a.
  • A shows the line of resistance – IPO (initial public offering) August 2004 until April 2005, show that after the initial burst of interest the stock had a hard time breaking through the resistance level.
  • Line B – Between April 2005 and October of the same year, the figures were once again staggering and there was another growth spurt.
  • Between October 2005 and October 2008, it is easy to see what was happening to Google stock and indicators clearly show resistance level – Line C.
By following the example, it shows that if you put a buy order when the price is running around the 100’s as it was in early 2005, you will have make a profit when the price went above level A. Similarly, if you were following the daily charts closely around that time, you would have seen the candles beginning to jump around for a bit at about 107 and then rise sharply up to about 168 – level B, where big trade wins could have been achieved of around 120.

Taking Profits: Going through the Price Ceiling

In Fig c. the line D indicates that Google stock value pushed through 277. If you had put an order in around the 168 mark and were still in the market when the price pushed through the 277 barrier, you would have made a killing at the beginning or 2008, when the price peaked at around 358.
Not long after, if you had not taken you money and run for the hills, you would have been heading for disaster. The price dropped very sharply from July 2008 and fell to below 120 by October of the same year. The drop in price came on the back of the major economic disaster of 2008 and who knew that would happen in such technicolour and with such dramatic effect on every part of the world economy.
Reading a past performance chart is definitely part of the technical analysis that every stock pundit uses but in a lot of ways it is rather like reading tea leaves to see what the future will bring.
Apple stock was on an absolute high a few years ago until there was a rumour that Steve Jobs had had a heart attack, almost immediately, the stock fell to a 17 month low which in effect was a very significant 5.4%.
Recently, the US presidential elections had a significant effect on gold price, which dropped over $200 dollars per ounce and has been spiking for short traders around the $1100 to $1150 mark for weeks. There is no telling what the future holds and anyone telling you that they know for sure, is not being truthful.
What we get from this analysis is that even stable companies or commodities can take a hit when the world economy bases its rise and fall on news stories, whether they are true or not.


Wednesday 18 January 2017

CCI + MA Trend-Follow Method for Binary Options Trading

A basic definition of a trend is a quotation’s general position relative to its average values. That’s why the MA indicator is absolutely indispensable in determining the current trend. Unfortunately, the moving average does not show traders what point is ideal to enter the deal towards the trend direction. For this purpose many traders use the CCI oscillator
A brief outline of types of moving averages and their applications is included in the explanatory video about the indicator, located in the MA settings window of the IQ Option Platform
In addition to the video, we inform you about common strategies, using different types of moving averages with other indicators involved, with clear and brief explanations from basic to advanced levels.
The idea is simple – to determine a trend using the moving average, enter on a basis of crossing the +100 level of the CCI indicator curve.

Indicator settings

The three following questions arise when setting up any trading system:
  1. Work timeframe;
  2. Indicator settings (indicator period, curve type to be used in the strategy);
  3. Time to hold the position (option expiration);
A large number of issues arise regarding the choice of the moving average type. It is considered that the basic moving average gives a lot of false signals on flat sections, and other types diverge in the presence of weight coefficients, giving the latest data greater importance. The overall winner is the exponential moving average, where influence with the nearest average values grows exponentially.
Natural selection has decisively resolved any disputes on the usage of moving average investor periods of 50, 100 and 200. They are used by analysts in reports and to this day they are set in the trading platforms of portfolio managers. Let’s make a simple moving average with a period of 50 within the IQ Option trading platform
Indicator settings are directed to identifying a trend – CCI with period 14 and SMA with period 50:

Upward trend

The signal of an upward trend’s inception is given by a candlestick crossed and closed above the SMA line. CCI readings should be more than 100. The figure below shows the features of upward trend inception: price crossing the moving average and quotations closing above the line (1).
Just keep waiting until the CCI indicator shows a value of 100 or above (2). With this method traders prefer to buy options 3-4 candles ahead.

Downtrend

In case we are preparing to buy a Put option, it is reasonable to wait for the congruence of quotations crossing the SMA line top-down, with the price of closing the candlestick below this line and CCI decreasing with readings below 100, as shown in the figure below. The intersection of quotations with SMA took place earlier on, so we do not enter.
Wait for CCI to fulfill the proper condition, see it in point 2, and hold for three timeframes (3).
The task of subsequent purchases of binary and turbo options on this trend is performed as follows. One intersection equals one trend; thus, despite the fact that point 4 of the situation in the figure above depicts the issue of finding quotes below SMA and newly appeared CCI signal below 100, which beforehand rose above that level, we do not enter this position here.

Indicator periods

Is it possible to scale this trading method on various timeframes? The classic method involves the application of CCI + MA methods on daily candlesticks. Considering the smaller timeframes, we change the period of the moving average: for 4-hour candlesticks it will be 100, for 1-hour and below – 200, the CCI indicator stays at the same 14 period. If you want to experiment, don’t look for values of this period above 24.
Novice traders try to find the ideal values for indicators and systems via brute force or by searching in literature. They are not alone in that matter, as investment institutions give similar tasks to mathematicians, the designers of new indicators. The grail has not yet been found. There exists already a good understanding of the existence of cyclical changes in the market, but their parameters are constantly changing. To reflect these changes precisely still seems to be impossible, as it is thereby to connect their functional dependency to something and thus make a clear prediction. For the best possible analysis, use the period values from the books of trading classicists, as they usually work consistently with the market cycles. 

Try to use trading method on IQ Option platform



Monday 9 January 2017

3 types of accounts in IQ Option

As a customer oriented broker we know how important it is to let you choose. Thus, we have divided the types of our accounts into 3 variations to let you manage your trading preferences. These are:
  • Training account
  • Real account
  • VIP account

Training account

is a totally free demo, which allows you to enjoy all the real account features and you have a $1000 for a start but these are renewable. No credit card details needed and you can deactivate such account at any time, or deposit and start making real withdrawals.

Real account

offers you full trading experience with more than 70 assets to trade with, true excitement of trades and real withdrawals within minutes to your bank card or e-wallet (the time to process a withdrawal vary depending on the method used. Most of the requests are processed within 24 hours but others can take up to 3 working days or more)
Real accounts also participate in our weekly tournaments and have a Support Live chat feature.
Once you open a real account, you still have access to the training balance, you are free to switch between them and train even more.

IQ Option VIPs

enjoy a number of perks unavailable to other traders:
  1. Higher profitability rates
VIP traders have an average of 3%* advantage over the rest of the clients. Higher profitability rates may assist in making their goals more achievable.
*Amount to be credited to account in case of successful trade.
  1. Personal managers
VIP account managers are extremely competent in all matters IQ Option. They are hands-on approach guys, who will always be there for you, will help you resolve any issue or advice on your account and progress.
  1. Free tournament participation
Free entry into any tournament is a VIP’s privilege and our pleasure to grant.
You can become an IQ Option VIP by depositing $3000.

Thursday 5 January 2017

Trading signals and technical analysis 2017-01-05

EUR/USD M30
 Start treading EUR/USD 

Classic Stock Option





Interview with Alexander Oush Account Manager/VIP Services Department

Please describe yourself in a few words. What is your education, what are your hobbies? Well I am a bit shy, but sociable person who loves to experience things. My hobbies, borderline obsession are cars. I had a 800 horsepower Mazda RX8 in the States. I have completed community college but i have gotten most of my experience in life by doing odd jobs (selling cars, management of a dunking donuts shop, door to door salesman of vacuums :)) How long have you been working here?What sort of work do you do? Who do you call, and what does your workday consists of? I have been working here for over a year in various capacities but have moved up to VIP manager several months ago. I work mostly with VIP and try to be as useful to our customers as possible. I make sure that the clients needs are met to make their trading experience not just enjoyable but profitable as well. Benefits of becoming a VIP-client The benefit of being a vip is that you have access to few exclusive features over regular traders. They get free registration in most of our tournaments (and earn a average salary of an american) they receive higher percent of return on their investment, and their withdrawals get approved sooner. Why are traders sometimes not able to purchase an option? What are the reasons for it? There are two main reasons why sometimes traders are not able to purchase options. a) Their internet connection is too slow and the request does not get to central office quick enough to purchase before the price changes b) If they reach the exposure, a limit set by the company to make sure that it can pay out to all of the winners should they choose to cash out at the same time. What's new on the platform and what to expect? This company is constantly evolving to keep up with the demand for a good product. It is not run by dummies or lazy people. The amount of new features that are being developed is quite extensive. But basically what the traders demand, IQ delivers. Question from you (something you are concerned about, or some question you are asked most frequently) The most common question that I am asked is "what is the winning strategy"....... Ha... Well if i knew that, I would be a millionaire now. Still working here (cause its a great environment and i like my colleagues) But the truth of the matter is that there is as many strategies as there are people in the world. Everyone is looking for something specific from the platform, that is unique as they are. My advice for all of my traders is to listen but then find out if it works for them. It needs to make sense, not just sound good

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