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Best charts for trading Binary options: which chart to choose for trading BO

Best charts for trading Binary options: which chart to choose for trading BO

As a trader, you will spend most of your time working with price charts. The price chart is used for technical analysis - analysis of price movement.

Typically, the price chart takes up the majority of the Binary Options broker's trading platform. For example, the price chart of quotex broker looks like this:

Quotex price chart

This chart shows price movement using a line - a line chart. This chart shows a minimum of information, but even it can be used in trading.

At the same time, broker INTRADE BAR, the price chart displays the same price movements, but allows you to get more information :

intrade bar price chart

Let's figure out what price charts are for, how to use them and what to pay attention to.

What asset price charts show at Binary Options brokers

A price chart is needed to determine further price movement. But how to do that? Any chart shows constant changes in the price of an asset. The Binary Options brokers themselves offer to make forecasts for these movements. For example, let's take the most popular asset – EUR/USD.

EUR/USD is an asset consisting of two currencies: the Euro and the American dollar. Assets consisting of two currencies are called Currency Pairs. Literally, the price of one Euro in Dollars at a given time is indicated.

Where does the asset price come from?
  • Large banks in different countries are constantly buying or selling currencies
  • Information about these trades is transmitted to everyone - these are asset quotes
  • Quotes are used by Forex and Binary brokers, as well as by many financial institutions
For a more understandable example, you can take the USD/RUB currency pair (American dollar and Russian ruble) - these are the quotes you see on the information boards, which indicate the current value of 1 dollar in rubles.

Asset on the price chart of the Binary Options broker

Having opened any trading platform of a Binary Options broker, you will need to select an asset on which you will make your predictions. Of course, each asset has its own quotes (its own price), so you can look for opening points for transactions on each asset.

In fact, everything is very simple:
  • You need to select an asset
  • The current price will indicate the value of this asset (for EUR/USD - how many dollars you need to spend to buy one euro)

asset on the Binary Options broker chart

Where can a trader get charts for Binary options

It just so happens that not all Binary Options brokers have acceptable price charts that allow you to get maximum information. Binary options brokers themselves began to move to functional charts relatively recently, but even the best broker charts can be inferior to third-party charts.

A Binary Options trader constantly has to work with several charts at the same time:
  • A price chart of a Binary Options broker is needed to open trades with a broker
  • A third-party price chart is needed to get more information
The only downside to this whole situation is that quotes on different charts may differ. This is because there is no single quote provider, so sometimes there is a margin of error.

Best price charts for price analysis

Many sites have good price charts with reasonable quotes:

Trading terminals with asset price charts

Very often, traders use Forex trading terminals to analyze price charts. A huge number of different indicators have been written for these terminals, which can be assembled into trading strategies:
  • MetaTrader
  • Thinkorswim
  • Ninjatrader
The disadvantages of trading terminals are that registering with them is problematic. For example, to register a Thinkorswim trading terminal (TOS), you must be a citizen of the United States of America. Also, most of these terminals are paid.

The only free terminal that is very easy to register with is MetaTrader (MT). It is used for Forex trading, but no one is stopping Binary Options traders from making price direction predictions in it.

price chart of the MetaTrader4 terminal

Programs with trading terminals for Binary options brokers

Some Binary Options brokers allow their clients to use programs with their trading platform. Such programs are installed on a computer or mobile device and serve as a replacement for trading through a browser.

In general, they all completely copy the functionality of the broker's trading platform and are needed only if your computer is not powerful enough to work with your broker's WEB platform.

Binary options brokers have the following programs:

Types of price charts for Binary options

The price is a set of numbers that changes every second:

price changes over time

If you plot all these points on a chart and connect them, you will get a price movement chart:

linear price chart

There are other chart options that are more informative for the trader.

Japanese candlesticks – a chart consisting of Japanese candlesticks:

Japanese candles

Bars – a chart consisting of bars (built in exactly the same way as the Japanese candlestick chart, but differs only visually):

bars

Heiken Ashi chart is a candlestick chart that is built using special formulas and better shows trend price movements and their strength:

Heiken Ashi

The line chart is almost useless, and the Heiken Ashi chart should only be used in special cases. Personally, I, like many other experienced traders, use the Japanese candlestick chart - it is quite enough for analysis.

How to use third-party charts in Binary Options trading

Many experienced traders advise analyzing charts on third-party platforms and only opening trades with a broker. This is a very correct approach to trading, but a novice trader will have questions regarding the implementation of this method, so now I will show you everything with an example.

Choose an asset from a Binary Options broker

First of all, you need to go to the trading platform of the Binary Options broker and decide on the asset on which you will trade. For example, let's take the broker Pocket Option and the EUR/USD asset:

EURUSD at broker Pocket Option

Setting up a third-party chart for analysis

Now we need a third-party chart, where the EUR/USD asset will also be. For example, I took the MT4 terminal:

third-party chart with EURUSD

Select the same time frames

In order to analyze a chart, you need to specify the same frame at the broker and on a third-party chart:

M5 at the Pocket Option broker

M5 to MT4

Analyze the chart and open a deal with the BO broker

Everything is ready for trading - we conduct technical analysis on a third-party chart:
  • Look at the readings of different indicators
  • Pay attention to the levels of Support and Resistance
  • Looking for candlestick patterns or formations
After all this, you need to select the expiration time. According to the standard, it is:
  • Current time frame * 4
Thus, for our 5 minute chart, the expiration time will be 20 minutes. Also, expiration time can be calculated in other ways. For example, set the expiration time two time frames higher than the current one:
  • The analysis is carried out on TF M5 - the expiration time will be equal to M30 or 30 minutes (between M5 there is M15 and only then M30, which is what we need)
Simply put, for transactions with an expiration time of 30 minutes, you should analyze the M5 TF, and for transactions with an expiration of 15 minutes, you should analyze the M1 TF. All that remains is to determine further price movements and open a deal with a Binary Options broker.

Over time, you will learn to understand charts very quickly and quickly make forecasts, but for now, it is best to stick to longer forecasts - several hours or even days.
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