Binary options customer support and resistance
The rationale behind the Support theory is that as the price becomes closer and closer to Support, it becomes cheaper and cheaper. Now, from the point of view of sellers, the deal becomes less and less lucrative as the price has fallen so much. Sellers will find that the deal is of no use, thus forcing buyers to outdo sellers and this scenario will prevent the price from falling below the Support. Situations may arise where the price may go below Support and sellers can overcome buyers.
This kind of behavior will reveal that inclination towards selling is more than buying. The rationale behind Resistance theory is that as the price comes closer to Resistance level it tends to be higher and higher making sellers more likely to sell their products. However, as the prices rise so much buyers will be less inclined to buy and hence another situation where sellers will outdo the buyers will be created.
Here, the price will be prohibited from going upwards. Just like Support, Resistance may also not hold its ground in all situations. The buyers can win over the sellers and when the Resistance is broken, the buyers will be more than willing to buy at higher prices and the prices will not come down easily.
In a nutshell, the traders who precisely understand the rules of Support and Resistance levels perform better in the market as they have more confidence and understanding power to manage their portfolios for easy gains.
Your email address will not be published. How to use our strategies from Best-Binary-Options-Strategy. Support and Resistance Strategy. No, because there is no evidence of level breakout, nor rebound. We are still waiting for the next hourly candle closing. Then we see that the next bullish candle also does not give us a clear signal. It is only after another hour, when we see that the market determines the direction bearish candle with a long body.
At the close of that candle, traders should buy a Put option with expiration time of hours. Unfortunately, support and resistance levels do not always become an insurmountable obstacle for the price.
Very often a breakdown of these levels occurs. Rules for trading at the breakdown level are similar to that on the rebound, but in this case we are waiting for the signal candle to close above the resistance level.
It serves as a signal for Call option buying with the same expiration term — 3 or 4 hours. It is also important to remember that when you open a transaction on the rebound or breakout of important price level, there are other factors affecting the price, such as technical trend lines, reversal patterns, continuation patterns and fundamental ones.
Skip to main content. Binary trading on support and resistance levels You are here Home. You can use this strategy on a demo platform first till you become really good trader.
How to trade support and resistance levels? Rebound from price level As the name implies, in this case, we will buy an option hoping that the price will not break the level and will unfold.