Oil binary options

Oil binary options

Combining the news and the double bottom formation, a discerning trader would know that the only way crude oil was going was northwards. This sets up the following binary option plays: 1) Touch option with an upside barrier above the neckline level of $ 2) No Touch option with a downside barrier below the double bottoms at $ The best way to approach crude oil binary option trading is to rely on fundamental analysis and use technical analysis to determine the best entry and exit points for your trade. Here are some of the main factors you should be on the lookout for: Weekly US crude oil inventories report, due at GMT on Wednesday Binary options are perfect to trade oil. The main advantage, in comparison with the futures market, is that you aren’t affected by the high volatility of this commodity at all. This is because you can’t be stopped out from your position like in the futures market – simply because you don’t need stops. Basically you are just betting on the direction of the oil price development until the option expires

Binary Trading Strategy for Oil

This article is sponsored by OptionBit which is our recommended broker for trading oil with binary options, oil binary options. It is true that this is a binary options trading blog, oil binary options, but the truth is that the principles we shall talk about cover all assets traded in the binary options market.

So we will select an instrument that is traded on the binary options platforms of many brokers to illustrate a typical trade strategy, and that asset is crude oil. Many traders are familiar with trading currencies, but very few trade crude oil. As such, they are in a position where they are oil binary options a lot of money on the table. This is supported by the fact that the same technical analysis principles used in forex analysis are virtually the same principles used in technical analysis of any other instrument.

What is good for the goose definitely has to be good for the gander as well. Let us examin a binary options trading strategy that will employ the use of the Fibonacci retracement tool, this time not as a strict retracement tool but as a tool that can be used for range trading.

Look at this daily chart for crude oil CLJ1, oil binary options. This kind of trade is a dicey one, because the oil binary options that were pushing crude prices were ones that could not be predicted. This was a war situation. Any shift in the dynamics of the war would immediately cause a shift in the behaviour of the underlying asset. This was what was playing out here, oil binary options. Prices were rising as no one knew how long the war would last.

As battles for the Libyan cities raged and towns were taken, lost and re-taken by the opposing fighters, prices were doing a dance. In this sort of scenario, it is extremely important to pay attention not just to the fundamentals, oil binary options, but to the technicals as well. You may have heard the saying: trigger fundamentally, enter technically, oil binary options. What this saying means is that the triggers for direction are the fundamentals the newswhile technical plays enable the trader to make the correct entry in the direction of the fundamental trigger.

As it became obvious that the war was going to last for sometime as talks and mediatory efforts broke down, traders settled in for a long ride upwards. But this is where the technicals came to play. In the chart below, we see a double bottom forming at the commencement of the civil war, giving crude a bullish jumpstart.

Combining the news and the double bottom formation, a discerning trader would know that the only way crude oil was going was northwards.

This oil binary options up the following binary option plays:. For those who missed the play on scenario 1, the next play would be to wait for the retracement that would surely occur as traders took profits.

Plotting the Fibonacci retracement tool from the swing low to swing high, we see this at the Of the two green circles, the second one is the most significant. This is because the first indicates the point of maximum retracement, oil binary options, which forms oil binary options key support. It tells the trader that any other retracements would probably test that support level as well.

This sets up the following trades:. The other binary trade types would be too risky to trade in this situation so we leave them out. Hope this short strategy lesson is well understood. We used this for crude. You can use it for any asset in the binary options market.

Trading Oil on Binary Options Platforms This article is sponsored by OptionBit which is our recommended broker for trading oil with binary options. Scenario 1 In the chart below, we see a double bottom forming at the commencement of the civil war, giving crude a bullish jumpstart. Scenario 2 For those who missed the play on scenario 1, the next play would be to wait for the retracement that would surely oil binary options as traders took profits.

This sets up the following trades: 1 Touch trade, setting the

Trading crude oil with binary options

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Trade on oil with binary options | Tutorial video | Nadex

Trading oil with binary options: tutorial video summary. In this video, we’ll show you how to go long or short oil in a limited risk/limited reward way using Nadex Binary Options. Step 1: log in to your Nadex trading account. Click ‘binary options’ and then ‘commodities’. Under ‘crude oil’ you’ll see the various expirations available The best way to approach crude oil binary option trading is to rely on fundamental analysis and use technical analysis to determine the best entry and exit points for your trade. Here are some of the main factors you should be on the lookout for: Weekly US crude oil inventories report, due at GMT on Wednesday Binary options are perfect to trade oil. The main advantage, in comparison with the futures market, is that you aren’t affected by the high volatility of this commodity at all. This is because you can’t be stopped out from your position like in the futures market – simply because you don’t need stops. Basically you are just betting on the direction of the oil price development until the option expires