Binary options trading best time frame


Welcome to our new series on binary options trading for beginners , where we will take you by the hand and show you a systematic way to trade binary options. Today we will touch on the best times to trade binary options. Some of these assets are traded on a hour basis: Stocks are not usually traded on a hour basis. The trading hours of a stock market determine the times at which a stock listed in that market is traded. When you take the time zones of the trading capitals of the world into consideration, this gives different trading hours for trading stocks on the binary options market.

The binary options market is one where traders make money based on predicting direction, and volatility is what gives price action direction in the market. Trading works best when the market is bubbling with activity from traders all over the world. When there is good trader activity in the market, it generates the liquidity and volatility needed for the underlying asset to get to its target before the option expires. Even though assets like currencies and commodities are supposed to be hour markets, there are only certain times of the day when the market activity is at its maximum.

This is usually when we have an overlap of the trading zones of the world. Because not all assets have the same trading hours, we will discuss the various classes of assets as separate entities, taking into account their own peculiar trading hours.

As we mentioned earlier, stocks are usually traded for a maximum of 6 to 8 hours a day. For example, there are strategies designed specifically for the few minutes surrounding when a market opens. Trying to apply such a technique during the middle of the day is likely to be a losing proposition.

Analyze your strategies and determine what the best time frame is for those strategies. Hopefully what you have time for section above and the time frame your strategy requires align. The sections above hopefully helped you narrow down what type of time frame you should be watching. Ultimately though there is no perfect time frame that will suit everyone. Some traders are successful trading off tick charts , while others off 15 minute or daily charts.

This is where I will throw you a curve-ball. Instead, look at two or three time frames. Short-term traders can view a 1-minute, as well as a 15 minute and 1-hour or 4-hour chart. The 1-minute provides entry and exit signals while the 15 minute and hourly make sure the trader is acting on more complete information about the trend and support and resistance levels. Swing traders and longer-term traders may focus on a daily chart, but can also use a weekly chart for providing a larger context for the trend and support and resistance levels.

A a 15 minute for example chart can also be used for fine-tuning exit and exit points. What is best for you will depend on how much time you have which in turn affects what type of trader you will be.