Binary Options Trading Software

There are a number of binary options trading software that can be used to increase the success rate of trades in this market. Just as is obtainable in the forex market, traders can use fundamental or technical analysis to predict possible trade outcomes. If you use technical analysis, you will no doubt have come across the concept of chart patterns. Thanks to a few software providers like Autochartist, traders have a new binary options trading software to trade with.

Binary Options Trading Software: The Chart Pattern Recognition Tool

This software simply helps traders to identify chart patterns. In binary options, it is not enough to simply know that the price of the asset is headed in a particular direction. It is also important to know how long such a move will last so that an appropriate expiry can be set for the trade in question. If a trader picks the correct direction but it takes too long to achieve the desired move, the trade will end up out of the money. You can learn more about trading using binary options at BinaryOptions.net.

Using the Software

We will base our tutorial on the chart pattern tool available from Autochartist. However, traders can construct their own chart pattern software plug-ins. Some chart pattern software also incorporate candlestick recognition as an additional tool to filter signals.

The key components of chart pattern recognition as a binary options trading software tool are as follows:

• Ability to detect a pattern as it occurs.
• Interpret the pattern so as to define the future direction of the asset.
•  Indicate the strength of the signal.
• Identify on what time frame the pattern is occurring as a means of determining the duration of the pattern’s signal. This is what leads a trader to set an appropriate expiry date/time.

Once the Binary Options Trading Software has Identified a Chart Pattern:

There are several trade possibilities:

• One Touch: trade with a barrier not exceeding the nearest support or resistance in a direction defined by the chart pattern.
• No Touch: trade with a barrier exceeding the nearest support or resistance in a direction opposite to that defined by the chart pattern.

This binary options trading software tool should never be used in isolation of fundamental analysis, because a news release that sends the price of the asset in the opposite direction to that predicted with the software will make nonsense of the trade. As such, binary options trading software is best used when there are no news releases that will interfere with the trade outcome. However, if the news release supports the direction in which the trade is expected to go, by all means, take the position. We see this play out for the EURUSD in the month of May, when the fundamental analyses for this currency pair was in tandem with the descending triangle chart pattern. The end result was that the currency pair sold off very strongly.

About the Author:

This article was written by Adam Green, who has more then 10 years experience trading in the Forex, binary options and commodities markets. He also runs a number of his own financial trading websites with trading strategies and analysis.