Best Charts for Binary Options: How to Choose and Use in Trading

As a trader, you’ll spend most of your time working with price charts. Price charts are fundamental tools for technical analysis, which is key to successful binary options trading.

Most binary options trading platforms offer a variety of chart types to analyze market movements. For instance, the price chart from Quotex broker is a line chart, which looks like this:

A line chart displays minimal information, showing only price movement over time. While it can be useful for identifying general trends, its drawback is the limited data provided.

However, some brokers offer more complex charts. For example, INTRADE BAR broker provides a candlestick chart that reveals far more about price behavior:

A candlestick chart, unlike a line chart, presents detailed information on price — including opening, closing, highs, and lows for each period. This chart type gives traders greater opportunities for accurate technical analysis and decision-making.
 

What charts are best for binary options trading?

Price charts play a crucial role in the technical analysis of binary options. The most common types of charts include:

• Line Chart: A simple chart that displays closing prices over a specific time frame. While it helps identify general market trends, it is not suitable for deep analysis.
• Candlestick Chart: One of the most popular charts among binary options traders. It shows opening, closing, high, and low prices for each period. Candlesticks come in green (bullish) and red (bearish), helping traders grasp market sentiment quickly.
• Bar Chart: Similar to the candlestick chart but with a different visual representation. It also shows opening, closing, high, and low prices, making it useful for detailed analysis.

Why is the candlestick chart the most popular among traders?

The candlestick chart provides the most information for technical analysis. Traders can easily determine market trends, key support and resistance levels, as well as reversal patterns using this chart type.

Candlestick charts enable the use of various trading strategies, such as Price Action patterns, and help identify important market signals for placing trades. This chart type is ideal for binary options trading on short- and medium-term timeframes.
 

Which chart should you choose for binary options trading?

Your choice of chart depends on your trading goals and strategy. Line charts are great for quick trend analysis, while candlestick and bar charts provide more detailed data for in-depth analysis.

We recommend using candlestick charts for more precise technical analysis and improving your chances of successful binary options trades. Mastering various charts can significantly enhance your trading results!

 

What do asset price charts show on binary options brokers' platforms?

A price chart is a key tool for market analysis and predicting the future movement of an asset's price. To trade binary options successfully, traders use charts to track asset price fluctuations. But how do you correctly read these charts and make predictions?

Binary options brokers allow you to make forecasts based on the price movements of assets, such as currency pairs. For instance, the most popular asset is the EUR/USD currency pair. This asset consists of two currencies — the euro and the US dollar. Currency pairs are among the most traded assets in financial markets, and their price constantly fluctuates on the charts.
 

What is the EUR/USD currency pair?

EUR/USD is a currency pair that shows the value of one euro in US dollars. The current price of the euro in dollars is displayed on the chart, and traders make decisions to buy or sell options based on this data.
 

How are currency pair quotes formed?

Asset prices, such as currency pairs, are based on global trade transactions. The main sources for asset quotes include:

 

• Actions of major banks: Central and commercial banks in different countries constantly buy and sell currencies, influencing market prices.
• International trade transactions: Buy and sell transactions between countries transmit information about current market conditions, forming asset quotes.
• Brokers and financial institutions: Forex and binary options brokers use asset quotes to provide trading opportunities to their clients. These quotes are also used on other financial markets.

Example of using quotes in the binary options market

For a clearer understanding of how quotes work, consider the USD/RUB currency pair (US dollar and Russian ruble). These quotes show the current price of one dollar in rubles, which can be seen on brokers' charts and in bank exchange rates.

Thus, price charts allow traders to understand the market's current state and make informed predictions. Proper chart analysis is an essential part of a successful binary options trading strategy.

 

Assets on binary options brokers' price charts: How to select and trade assets

Selecting the right asset to trade on a binary options broker's platform is crucial for successful trading. Each asset has its own price quotes, and traders make decisions based on analyzing price movements.

To start trading, follow these steps:

• Select an asset — This can be a currency pair, commodity, or stock, depending on what the broker offers.
• Analyze the current price — For example, the EUR/USD currency pair's price shows how many US dollars are needed to buy one euro.

Binary options brokers' charts display all price changes, enabling traders to find entry points for trades.

Where can traders find the best charts for binary options? Tool comparison

Not all binary options brokers offer fully functional price charts. At the same time, external services provide more detailed charts that help traders gather additional data for analysis.

Binary options traders often need to use several charts simultaneously:

• Broker's price chart — Used to place trades directly on the broker's platform.
• External price chart — Used for gathering additional data and more detailed analysis.

However, it's important to note that quotes on different charts may vary slightly. This is due to different brokers using different sources for their price data.

Top online charts for analyzing asset prices

Traders can use external online charts for price analysis, which provide up-to-date quotes and additional features. Here are some popular services with excellent charts for analyzing assets:

• TradingView
• Investing
• NetDania
• FreeStockCharts
• MT5
• Finam
• BCS Express

Best trading terminals for working with asset price charts

Many traders use specialized trading terminals for analyzing price charts, which offer numerous indicators and automation for trading strategies. Here are some popular platforms:

• MetaTrader
• Thinkorswim
• Ninjatrader

The advantages of such terminals are clear: they allow you to work with a wide range of indicators and tools for analysis. However, some may require registration or payment. MetaTrader, for instance, is free and one of the most popular solutions for Forex and binary options analysis.

The downside is that some terminals have complex registration or geographical restrictions, like Thinkorswim, which is available only to US citizens. Nevertheless, MetaTrader is an excellent choice for traders looking for a free solution for technical analysis.

Programs and apps for trading binary options with charting features

Some binary options brokers offer programs that can be installed on a computer or mobile device, providing an alternative to web-based trading platforms.

These programs replicate the functionality of the broker’s web platform but can run faster and more reliably, especially with unstable internet connections. Here are a few brokers offering such programs for binary options trading:

• IQ Option
• Pocket Option
• Quotex

Types of price charts for binary options: How to choose the best tool for analysis

A price chart is a visual representation of an asset's price changes over a specific period of time. Every second, the price updates, and all these changes can be seen on the chart:

When all the price changes are connected into a single line, we get a price movement chart:

Types of charts for binary options trading

There are different types of charts that can be more or less informative for a trader. The choice of chart type can significantly affect the success of analyzing price movements and decision-making. Here are the main types of charts:

Candlestick Charts

Candlestick charts are one of the most popular and informative types of charts for analysis. They display not only the current price but also the price ranges over specific periods, including opening, closing, highs, and lows:

Each candlestick represents a time unit during which the price opened and closed, along with the highs and lows for that period. Candlestick charts help traders better see trends and reversals.

Bar Charts

Bar charts are similar to candlestick charts but differ visually. Bars also show the opening, closing, highs, and lows of a price for a period but have a more minimalist appearance:

Bars are used by traders who prefer a less cluttered chart and focus more on key price points rather than visual elements.

Heiken Ashi Chart

Heiken Ashi is a special type of chart that helps traders identify trends and their strength. It uses a specific formula to build the candles, smoothing out market noise and making price movements more predictable:

This chart is particularly useful for spotting long-term trends and their duration but should be used with caution as it may delay the signal of a trend reversal.

Line Chart

A line chart, often used on trading platforms, is the least informative type as it shows only one point for the selected period (usually the closing price). Binary options traders rarely use line charts because they don’t provide a complete picture of price movements, leaving out key elements like shadows and price ranges crucial for technical analysis.

Which chart should you choose for binary options trading?

The line chart has limited application in technical analysis, while the Heiken Ashi chart is best for identifying trends but is used in specific cases. The most versatile and effective tool for most traders is the candlestick chart, which provides the most information for decision-making. This type of chart allows traders to see all the important elements of price movement and make more informed trading decisions.

Using charts for binary options trading

Charts are an integral part of technical analysis in binary options trading. Choosing the right type of chart can significantly affect the accuracy of your predictions and trading success. Candlestick charts remain the best option for most traders due to their informativeness and ease of use.

How to use external charts for binary options trading: A step-by-step guide for traders

Experienced traders recommend conducting technical analysis on external charting platforms before placing trades with a binary options broker. This approach helps gain more accurate information and confidence in making trading decisions. For beginners, this process may seem complex, so let’s walk through it step by step.

Step 1: Selecting an asset on the binary options broker's platform

First, log into your binary options broker's trading platform and select the asset you will trade. For example, let’s take Pocket Option broker and the EUR/USD asset:

Step 2: Setting up an external chart for asset analysis

Next, select an external chart for analyzing the chosen asset. A popular platform is MetaTrader 4 (MT4), which provides a wide range of indicators and tools for precise analysis:

Step 3: Choosing matching timeframes for analysis

For accurate analysis, it's important to choose matching timeframes on both the binary options broker's platform and the external chart. For instance, if the broker’s timeframe is set to M5, you should set the same on MT4:

Step 4: Performing technical analysis on the external chart

After setting up the charts, you can start technical analysis. Here are the key steps:

• Analyzing indicator readings (e.g., moving averages or oscillators)
• Identifying support and resistance levels
• Searching for candlestick patterns or chart formations (e.g., "Head and Shoulders", "Pin Bar")

Next, you need to choose the expiration time for the trade based on the selected timeframe.

Step 5: How to choose the optimal expiration time for binary options

To choose the right expiration time, use the standard formula: current timeframe * 4. For example, for M5, the expiration time will be 20 minutes. However, there are other strategies:

• Analyzing on the M5 timeframe — the expiration time will be M30 (the next available timeframe)
• For analysis on M1 — the expiration time will be 15 minutes (the next level is M15)

This approach helps traders manage risks better and make more accurate forecasts.

Step 6: Opening a trade on the binary options broker

Once the analysis is complete and the expiration time is selected, the final step is to determine the direction of the price movement. Based on your analysis, you can open a trade with the binary options broker. Over time, you'll learn to quickly interpret charts and make decisions, but for now, it's better to stick to longer-term trades — from several hours to days.

Benefits of using external charts for binary options trading

Using external charts for asset analysis provides traders with more information and tools for accurate market predictions. This helps minimize risks and improve binary options trading results. Over time, this approach will become part of your daily trading strategy.