2017 The Secret Trader Ebook

The 2017
Secret
edition
Trader
Tips and tricks on trading
binary options and forex
Lectures from beginner to ad-

vanced trader
Instructions how to trade
Binary Option Sheriff

The Secret Trader
INTRODUCTION
The Secret Trader is a comprehensive education on the secrets of trading. Whether you
want to become a professional Binary Options Trader or a Forex Trader – Education is
the only secret to your success.
The Secret Trader is aimed at rookies, newbies, and freshmen! This E-book is a complete
university education in simplified form! It is designed to help you acquire, skills, knowl-
edge and lets you on secrets that will turn you into a successful trader. But without the
heavy jargon!
Starting from the basic steps for beginners, the Secret Trader will walk you through high-
er levels of education with unbelievable tips and tricks which make trading as easy as
ABC.
How do we define a successful trader? In order to qualify as a superstar trader you

will need to be on this level of achievement
a. Execute Clever Trades

b. Win the Trades
c. Go back to “a”
You will start this E-book by going through the Elementary Level. Gradually we change
your uniform to the Intermediate Level. Once you qualify from the Intermediate Level,
you are ready to go to Advanced Level.
What you will manage to achieve by going through this E-Book is the biggest secret of all.
It is your financial success and liberation.
Each lecture is visualized with real life trading that makes it practical for everyone seek-
ing the Secret of Trading to understand.
Congratulations!
You have just set yourself into the secret journey of Trading Success.
Mariella Sheriff
Copying of this material is forbidden. Copyrights: Binary Option Sheriff 2017

Welcome to
Sheriff University
The Sheriff University has been created for traders to use and acquire
skills, information, extensive knowledge that will help them become suc-
cessful traders in the binary markets and even in forex. The principles
for trading are the same both for Forex or Binary Trading. The method in
which the trades are executed may be different however the principles
remain solid and the same.
Free live trading videos and strategies
Take advantage of getting access to free live tarding material

on our You Tube channel. Not only will you learn how to use
different platform but also you can copy same strategies we are
presenting during live trading session. Subscribe to Sheriff You
Tube Channel.
How to join?
To get access to all existing and upcoming lectures simply

subscribe here by leaving your name and email address.
I’M JOINING
INDEX
The Secret Trader Content
PART I NEWBIES
What are Binary Options and how does Binary Option Trading differ from Regu-
lar foreign Exchange Trading? 1
Why Trade Binary Options? 3
Quick Start Tutorial for trading Binary Options 5
Forex Market Analysis – 3 Types of Market Analysis 9
Trending Market for Binary Options 12
PART II INTERMEDIATE
Support and Resistance Levels – 15
The Ten Commandments 18
Trading Charts for Forex and Binary Options 20
Japanese Candlesticks and Binary Trading 23
Basic Japanese Candlesticks –Pattern 26
Japanese Candlestick Patterns – Dual and Triple Patterns 31
Fibonacci Retracement and Extension Lines 35
Binary Options Risk Management 39
PART III ADVANCED

Bollinger Bands – How to use in Binary Options 41
Martingale Strategy – Is a Betting System 43
Elliot Wave Theory – Practical Tips 47
Economic Calendar – How to use it and profit Forex and Binary 52
Benefits of joining a social trading group 55
Traders Manual 58
What Are Moving Averages – How Can They Help Us With Trading? 60
Binary Vs Forex – Investing and Earning Online 64
What are Binary Options and how does Bina-
ry Option Trading differ from Regular foreign
Exchange Trading?
Binary Options are a very easy way of Trading Currencies, Hot Assets
like Gold and Oil and other assets such as Shares – because the me-
chanics of their operation is so simple.
The word Binary in Itself means that it is according to how the market will move,
a base-2 numeral system. It may sound you will know whether it has moved in
complicated but actually all it means is your favour or against your direction. If
making a choice of up and down – this is let us say, you took your call option, when
your Option. And there is not much else to the rate was at 1.1111 – this is called your
it in terms of mechanical operation of the STRIKE PRICE and the market swings up
Binary Option platforms. Okay, so perhaps and down for a couple of minutes but
this is an oversimplication of Binary Option eventually steadily climbs to 1.1122 – at
Trading, but we shall go into more detail the end of the Half Hour, which is your
immediately. So you are faced with a ques- Expiry Time – you will win your stake. Clap
tion.Will the EURO rise against the USD your hands and shake your booty… you
Dollar in the next half an hour? That is the are IN THE MONEY or ITM as the lingos like
question. to say.
If you are watching this currency pair and

you think that the Euro will rise you will
take what is called a “Call” Option and if
you think it will fall you will take a “PUT”
Option for the amount which you would
like to put at stake. Depending on the
Binary Option Platform or broker you use,
it can just be an UP and DOWN Button or a
CALL and PUT button. Eg., 24 Option have
an interface with the UP/DOWN Button
which is very easy to operate for beginners
whilst TOPOPTION have a CALL/PUT but- How much will you win?
ton. Well different brokers, hand out different
payouts, or a percentage of your invest-
ed capital but let us say on average they
Let us for the sake of the argument, as- would be paying you 75% of your staked
sume that you have a lot of cash to spare, investment. In this case you would be get-
and that you will wager a $100 on this ting $175 since the market moved in your
trade because you feel it in your bones favour. Hurray.
that the Euro will be rising steadily in the
next half an hour and therefore you take a If however, you were wrong and the Euro
CALL or UP option. dropped to 1.1100 within that half hour,
then you would loose all of your original
What happens in the next half hour, is that staked cash deposit of $100. Good-bye
1
SN: 00172203 eBook: “The Secret Trader” Copyrights Binary Option Sheriff 2017
Margaritas at Sunset because you are OUT dedicate their lives to studying the market,
OF THE MONEY, or OTM for the Gurus. give you signals over a facebook page on
Ouch burnt fingers – your bones don’t feel which options to take.. Hey check it out,
that great anymore, and you start thinking and it is actually for FREE.
of your money Management. (Check this
out in Nappy Stage)
For Binary Options you will win or lose

even with just a fraction of a pip move-
ment up and down. Now if you don’t know
what pips are, we will discuss this in Teeth-
ing Problems.
One thing that you will start calculating
immediately, is how many times you can
play the currency or stock market, in order
to have financial gain.
Let us assume that you will continue play-

ing the market with a $100 cash invest- GOLDEN WORDS
ment per trade, and that the Percentage
Payout is for $75. Few words of advice before we go any fur-
If out of 10 trades you loose 2 trades, then ther on education.
you loose $200 but your make $75 on the
other 8 trades. This will total $600 in prof- 1. Binary Option Trading is not for every-
its less the $200 loss, and you will collect a one. You can loose a lot of money, espe-
neat $400 in net profits. Not too bad or a cially if you are not level headed and pre-
few trades just pushing a YES OR NO BUT- pared to understand what you are doing.
TON, right?
2. Never invest more than what you are
Wrong. If you have a 7/10 win rate with prepared to loose. Check this out on our
the same currency pair and with the same money management.
amount staked per trade and pay out, you
will make $225 – not as great but hey, we 3. Go with Binary Option Traders that are
are still making money right? regulated and which will offer you a DEMO
Wrong. If your win rate falls down to a 6/10 ACCOUNT once you open an account with
with the same variables, you are suddenly them.
down to just $50… This is starting to be-
come tricky… and with a 5/10 win situation 4. Practice only on DEMO ACCOUNT or
you are actually losing $125. PAPER MONEY until you consistently have
a minimum of 7/10 win rate.
So what are you going to do??
5. Follow others who know what they are
Looking into the glass ball to make your doing. You don’t have to go this alone. It’s
best bet is not an option. Luckily, there are more fun making money with plenty of
mentors and an even better solution. You others
could be doing this job with people who
know what they are doing, because they
have studied how the market will react.
One Manual Trading Signal group that I
would definitely recommend is Michael
Freeman’s Manual Trading Signal Group.
Here a bunch of bright young people, who
2
Why Trade Binary Options?
This post will analyse the advantages of Trading Binary Options over
Forex Trading There are plenty of advantages for Trading Binary Op-
tions even over Forex Trading – although they are based on the same
market principles. Here are some of the benefits and advantages of
trading Binary Options.
Trade Binary Options – Simplicity in Exe- Trade Binary Options with Calculated
cuting Trades Risk
Binary Options have taken the market by The day trader can exercise Risk Manage-
storm because of their simplicity to exe- ment by knowing exactly the potential of
cute. The Binary Options Brokers provide his loss and maximum earnings BEFORE
easy to use platforms. The day trader has setting up the trade. The value of the trade
only got a few choices to make is the maximum amount of loss that can
Choose the Trading Asset eg., currency be experienced by the trader if the trade
pairs, Indices, Stocks and Top Commodities ends OTM or Out of The Money. Unlike
Choose the Time Frame within which to Forex Trading, there is no leveraging and
trade. Generally speaking, good brokers therefore a trader is not exposed to poten-
offer from 60 seconds trades to 5 minute tial losses greater than his risk value. Like-
trades, called Turbo Trades. Then offer wise, the potential profit if the trade ends
classic trades which range from 10 minute ITM or In The Money is known at the outset
expiry all the way to end of day. The trad- by the payout given by the Broker.
er has to choose from any of the expiries
available.
Trade Binary Options with No Commis-
Choose the direction of where the day sion or Middleman.
trader thinks that the price will go. Gener-
ally this will be UP/DOWN or BUY/SELL The day trader does not have to pay any
Execute the trade for the value chosen. clearing fees, government fees or bro-
This again may range from $1 all the way kerage fees. The Broker makes his profit
to $25,000 for any single trade, again de- from the difference between the value
pending on the Broker.trade binary op- of the trade and the pay-out by netting
tions. out against other traders who have lost a
trade. Trade Binary Options on a market
that runs 24 hours a day for 5 days a week.
Anywhere you may be in the whole wide
world, you do not need to wait for a spe-
cific time to trade. The Stock exchange in
Australia is the first to open on Monday
Watch this video why trade binary op- morning (which is still Sunday afternoon
tions or continue reading. in the USA). To know what your Time Zone
is vis-à-vis other countries you may check
this out HERE. The binary options and
forex trading market never sleeps. It only
3
The Trading Market cannot be manipu- Trade Binary Options using Trading Tools
lated The Binary Options Industry like the Forex
Industry is aided with tools which arrive in
The Forex and asset market is such a huge a variety of forms such as signal software
market that no one entity can manipulate and auto traders. These tools will give you
it. No central Banks, not even politicians signals and may even auto-trade on your
have the ability to move the market. The behalf with varying success. Choosing a
market moves only on the Market Senti- legitimate signal software system or auto-
ment. Trading can be enhanced or avoided mated trading is crucial to your success.
during volatile periods whenever there is The market is inundated with scam soft-
an Economic Update. ware systems, and we recommend that
you due your due diligence and always
check out our Recommended Signal soft-
Trade Binary Options because of High ware systems as well as our Hall of Horrors
Liquidity in the Blacklist page.
Because the binary market is so enormous,

it is also extremely liquid. A trader can exe-
cute a trade at the touch of a button. Hav-
ing said this, choosing a legitimate broker
and ideally a regulated one, is quintessen-
tial for pay-outs and withdrawals.
Trade Binary Options with Low Deposits

to Entry
The minimum deposit required to set you

off as a Binary Options trader can be as
low as $50 dollars, but is generally deter-
mined by the individual broker and an
average the minimum deposit required to
open a new account would be in the tune
of $250.
Trade Binary Options on a Free Demo

Accounts
Learning trading can be painless when

opting to trade on a DEMO ACCOUNT.
Most binary brokers will open a separate
demo account once you have funded your
account. However some brokers such as IQ
OPTIONS give you the possibility of open-
ing a DEMO ACCOUNT without needing to
fund an account.
Practice to build your skills with demo
accounts and free charting systems. Net
Dania offers excellent charting services for
free. Forex Factory also gives you news and
updates on their Economic Calendar.
4
Quick Start Tutorial for trading Binary
Options
So you want to join the Bandwagon and Trade Binary Options to make
a quick buck right? Wrong. Trading Binary Options requires work and
dedication. It is a legitimate way of making money online and can pro-
duce substantial profits – but if you do not follow professional advice
–Trading, will potentially wipe away your capital – and very fast.
Here is a Quick Start Tutorial into Bina- of your verdict take the profit pay-out.
ry Options Trading Pay-outs can vary from as little as 65% of
your Trade Stake or even as High at 90%
Choose a Recommended Broker with an depending on the asset you choose and
option to a Demo Account. Paper Trades or your Broker.
Dummy Trades are the first steps you need
to take BEFORE committing your capital to Sounds Simple Yes? Actually placing Trades
Trade Live. on Binary Option platforms is a No Brain-
Start off with Trading Classic Binary Op- er.Forecasting the correct direction is the
tions. difficult part.
Choose an asset you would like to Trade.
Eg., A currency pair like EUR/USD In order to Trade Profitably, a Trader needs
Speculate on the direction in which the to Have a Trading Strategy.
pair will move ie., UP or DOWN.
What is a Trading Strategy?
Money Management. A Trade should never

represent more than 5% of the Trader’s
entire capital.
The Three legged Monster ! A trader needs
to decide whether he is going to trade
Trends, Sentiment or News – heck it start
getting complicated!
A Trader will determine whether to let a
Decide on the Time Frame for the Trade. loosing Trade Go, or persist. Will he double
up his staked Trade value in order to re-
Time frames can be from as short as 5 cover his losses ?
minutes to 60 minutes. Once the Time is
Expired – your position is automatically Although the Martingale Strategy works for
closed. some, this is a very risky style of trading
and may fast crumble your investment SO
Hit the CALL/PUT button. Some Brokers BEWARE.
use the keys UP/DOWN and others may
use HIGH/LOW As a new Trader you may be thinking
BORING!! SHOW ME THE MONEY FAST. If
Wait for the duration of your selected time this is your thinking, we suggest that you
frame and if the pair move in the direction either leave this site for a Poker Game, or
5
be more safe and go back to your 9.00 – Not sounding as complicated anymore?
5.00 Job. If you are still interested in mak-
ing money online, you have to swallow Trend Trading is very subjective – but it is
the hard pill and get a basic knowledge of one of the Pillars of Trading Analyses. If
Trading you wish to have access to FREE CHART-
ING you may visit www.NetDania.com and
This Tutorial for Beginners will focus on launch Net Station.If New to Trading – Arm
Trend Trading and Demonstrate some Yourself with a Good signal Software –take
simple Basics that are used by Experts with out the pain out of your procrastination
repeated Success. and Trust Experts to do the Analysis for
you.We recommend Mike’s Auto Trader as
a Great Tool to help you with your Trading.
WHAT IS A TREND ? Read full review and download it here.
Final Word of Advice from the Binary Op-
Trend analysis is the study of Price Move- tion Sheriff.
ment. If you are Trading on a 15 MINUTE
EXPIRY, you need to be looking at a 30 Binary Option Trading exposes you to risk
minute chart to see how the Currency Pair of loosing your capital. Trade with Caution.
or Asset has been behaving. And we don’t That said, if you carve your way into Educa-
mean whether it is being good or naughty tion and arm yourself with the Right tools,
– but whether the trend is generally high or it can be very lucrative.
low. The past performance of the asset will
theoretically determine how it will move in Note of caution: Auto traders and signal
the short term future. Kindof History Re- software systems are tools to be used in
peating itself! your trading tool kit. Used properly they
produce positive results if they are legit-
imate Bots, and linked with LEGITIMATE
BROKERS however, all trading exposes
you to risk of loosing your capital.If new
to trading we also recommend social trad-
ing. Copy trading is the best way to trade
if you are a Newbie. Follow the signals of
live traders on the Social Group on Face-
book and enjoy safe trading by opening a
FREE DEMO ACCOUNT. Contact us on the
subscription form for more information if
you are interested in learning how to trade
with the best.
Here we see a 30 Minute Chart. Every red

or blue bar represent how the price moved
every 30 minutes. Clearly the pair have
been on a downtrend. –Which direction
likely will you Choose if you a taking a 15
minute Trade? Up or Down? If your choice
is Down, you will have chosen well and
probably profited from your strategy.
6
How to start gaining binary options?
When to trade binary options ? Trading sessions that keep

you in the money ITM.
Knowing WHEN to trade Binary options is ney Session Opens first, followed by the
quintessential in keeping you IN THE MON- Asian Sessions or the Tokyo session. The
EY. If you are a new Trader, you are proba- big boys then start Trading a couple of
bly asking why should it matter? The Mar- hours later, and this is the London Session,
ket is Open 24 hours a day – right? Wrong! followed by New York Session which is
The first maxim to keep in mind as a new the last session and blends again into the
Trader, is that you want to trade when the Sydney Session.
markets are Trending not when the Market
is ranging. A Trending Market offers you a Since Europe and the US have a Summer
perfect opportunity to prepare your strate- and a Winter Time Frame the Down Time
gy, take your Tools From the Tool Box, and Sessions vary from summer to winter.
Trade. You can Trade successfully when
the market moves UP or when it moves SUMMER SESSION – APRIL TO OCTOBER
DOWN but you cannot WIN trades when Time Zone EDT GMT
the market is moving sideways. Sydney Open
Sydney Close 6:00 PM
3:00 AM 10:00 PM
Recommended highly profitable auto- 7:00 AM
trader. Tokyo Open
Tokyo Close 7:00 PM
To understand the best time to trade, 4:00 AM 11:00 PM
a Trader needs to understand the time 8:00 AM
frames of Different Trading Sessions all London Open
over the world. London Close 3:00 AM
12:00 PM 7:00 AM
4:00 PM
New York Open
New York Close 8:00 AM
5:00 PM 12:00 PM
9:00 PM
Watch this video with live trading or con-
tinue reading.
WINTER SESSION – OCTOBER TO APRIL
Time Zone EST GMT
Sydney Open
In a 24 hour day trading can be broken Sydney Close 4:00 PM
down into four major sessions. The Syd- 1:00 AM 9:00 PM
6:00 AM
7
Tokyo Open affects market movement in a completely
Tokyo Close 6:00 PM different manner from a Trending Market.
3:00 AM 11:00 PM Establish What kind of Trader are you in or-
8:00 AM der to see which style of trading suits your
London Open personality.
London Close 3:00 AM
12:00 PM 8:00 AM News Announcements = Volatility =
5:00 PM Opportunity = Risk
New York Open
New York Close 8:00 AM The ForexFactory Calendar gives you a
5:00 PM 1:00 PM complete forecast of the upcoming News
10:00 PM Announcements and the strength of their
impact on the markets.
http://www.forexfactory.com/calendar.php
BEST HOURS OF THE DAY TO TRADE Note also that towards the end of the Eu-
ropean Sessions EU Traders may be closing
As can be seen from the grid above – there their positions whilst the US Traders will
are times when the sessions overlap – and be contemplating lunch and not on their
these are the busiest time frames for Trad- best trading behaviour – this can reflect in
ing Binary Options. Since there is more a choppy market.
volume of trading, the market will reflect in
stronger trends.
best time to tradeThe European Session is BEST DAYS OF THE WEEK TO TRADE
the session which usually provides most
movement and as with a great TV Series, We have established that the busiest ses-
this is when their ratings or liquidity are sion to trade in is the London Session – but
peaking. there are also days of the week which are
particularly better to trade in than others.
The overlap between the Tokyo and Lon- Understandably the slowest date and time
don session is the thinnest – at the end of the week would be Friday Afternoon.
of day of a long Tokyo day the Japanese As most Traders are busy planning how to
traders are thinking of their sushi whilst enjoy the spoils of their week’s profits, this
the slow English Traders are contemplat- time frame becomes particularly sluggish.
ing their Earl Grey. As liquidity dries up, The slowest and absolute time to avoid
the movements on the markets become is the Friday Afternoon of the US Session
very slow – and this becomes a lazy time since all other Sessions will have closed,
for trading. If you are a Newbie and you do and the US Traders are the only players in
not avoid this time – you will find that an the field.
Option you have taken may scarcely move
from the original price. A very risky situa- Mondays are the slow start for the week,
tion. with Traders reminiscing over their lovely
weekends – so until strategies are planned
On the other hand the London and New for the coming week – Monday mornings
York Overlap is when all the drama en- are relatively slow and probably nervous
folds. You can literally feel the energy from hours for most sessions. Once again it is a
the force of trading. This is when you can time frame to be avoided particularly if you
see some big price movements in the mar- are a Novice Binary Options Trader.
ket.
Best days of the week would be Tuesdays,
A careful watch for Economic Calendars Wednesdays and Thursdays, when every-
is very advisable. If there is any important one’s adrenaline is pumping.
news to be announced, you may want to
avoid trading if you are a Newbie. News
8
Forex Market Analysis – 3 Types of
Market Analysis
There are three types of Forex Market Analysis which can both
apply for binary options as well as for Forex markets. These are
Technical Analysis, Fundamental Analysis, and Sentiment Analysis.
In this post we are going to understand each type of analysis and
understand how each and everyone one of them is pertinent to
learning how to make money online trading binary or forex.
Three Types of Forex and Binary Market

Analysis If we have a look at the chart below on the
29th August the price of GBP/USD re-
There are three types of market analysis turned exactly to the same position it held
and there has always been a huge debate on August 19th! The support level held! If
as to which of the three is the better Forex we had plotted our Fibonacci Retracement
market analysis! Lines, we will have seen that the price re-
tracement was perfect. The price returned
Technical Analysis to its support line.
Fundamental Analysis
Sentiment Analysis
Let us be clear. There is no hard and fast

rule as to which is the better. A piece of
sound advice is probably that the three of
them combined together will give you the
best results in trading. If only one or the
other is used exclusively, it is pretty much
like trying to balance on one foot, rather
than having the stability of having both
feet on the ground!
Forex Market Analysis – Technical Anal-

ysis So basically this is what the first compo-
nent of Forex Market Analysis, ie., Techni-
Studying how the price moves in Binary cal Analysis is all about. If the price held at
Trading and Forex markets is the best the support level in the past, it is bound
description for technical analysis. A trader to travel back to the support level in the
who is able to look at historical price move- future.
ments and determine the current trading
conditions, will be best placed in making Traders are literally using historical infor-
trades based on how the price will poten- mation to create the future. In real terms,
tially move in the future. Theoretically, all since many traders are looking at the same
market information is described in price support and resistance levels, they can
movement. Therefore technical analysis in form an idea where the price will be head-
Forex market analysis becomes a self ful- ing. One assumes that the price will find its
filled prophesy of “history repeating itself”.
9
way back to its support or resistance level the Sterling against other major curren-
over a period of time. cies. The unexpected results from Brexit,
plunged the Sterling to a depth that had
Charts are the best and most visible way in not been witnessed since 1985! Sterling hit
which to visualise historical data. Therefore a 31 Year Low.
traders will be looking at historical data, ie.,
charts of different time values in order to
spot trends and patterns and of course this
will mean, that they can find a good trade
set up.
Naturally the more traders that there are

looking at the price patterns and signals,
the better the chance of the price fulfilling
its own prophesy.
Forex Market Analysis – Technical Anal-

ysis – Subjectivity
We cannot exclude the fact that technical

analysis which form only one part of the
Forex Market Analysis can be VERY subjec-
tive. Despite the fact that many traders will
be looking at the same charts, it does not
mean that they all agree at where the price
will be heading.
The valuable information set with technical

analysis is the concept that the price al-
ways returns to its support and resistance
at some point. Later, we understand how
using tools such as the Bollinger Bands and
the Fibonacci Tools, will help us get a clear-
er idea where the price might be headed, Although it is very hard to evaluate all the
and make some extra money online trad- factors that affect the supply and demand
ing binary options or forex. of a currency, we know for a fact that when
the economy of a country is strong, the
currency stays strong. When an econo-
Forex Market Analysis – Fundamental my starts failing, its currency and related
Analysis assets start falling. If a country is in good
shape, and its economic and political tem-
Economic, Social and Political forces of perature are stable, then it is likely that
any country are crucial in determining the it will attract foreign investment. Foreign
strength and weaknesses of their respec- investors need to buy the country’s cash
tive currencies. For example as recently as in order to invest in that particular place.
a few weeks from writing this article, we Hence the demand increases and so does
saw the UK vote itself out of the European the cost of the currency. A good economy
Union after its Brexit Referendum on the will result in higher currency value, whilst a
23rd June. bad economy will result in a lower curren-
cy value.
If we have a look at the charts below
we can see how the decision influenced
10
Another factor that is directly relevant to the 12th September 2016 and the article
forex market analysis and fundamental by Brett Arends on Market Watch was
analysis is interest rates. When a country’s written just a few hours ago which proves
economy is strong, it is normal to see gov- that market sentiment is a huge factor that
ernment increasing interest rates in order influences prices in general.
to curb growth and inflation.
So finally as a trader you need to take all
Alternately government lower interest this information into consideration. Al-
rates in an effort to stimulate an economy. though you may feel it in your bones that
Such important decision made by Gov- prices are going up, this does not auto-
ernments can be watched by checking the matically mean that they will. If the gener-
Economic Calendar. Knowing exactly which al market sentiment is that the price will
newsworthy items to watch out for could drop, then it will drop. It is therefore very
be an interesting way to either avoid disas- important to gauge the market, to under-
ter when trading online, or to take advan- stand whether it is a bullish or a bearish
tage of volatility. market and include the perception of
market direction along with the rest of the
Knowing what we already know about Forex Market analysis.
Forex market analysis and technical analy-
sis, we already understand that combining
the two analysis together will give us a CONCLUSION ON MARKET ANALYSIS
better chance to trading profitably.
Remember that knowledge is power. Ig- One must remember that getting an ed-
norance is failure. This could not be more ucation is the only way in which you can
true in online trading. make money online in the most active mar-
ket in the world – that of Forex or Binary
Options.
Forex Market Analysis – Sentiment Anal-
ysis You must also remember that your educa-
tion will never stop. If getting an education
As a trader you may have taken into con- feels boring, we recommend that you stick
sideration all aspects of Forex Market anal- to your 9 – 5 job! Learning how to trade
ysis. You may have put your best charts requires commitment.
forward, plotted all your trading signals,
read all the news and the economic up- Choosing to trade in spite of having lit-
dates, and set your perfect trade. However, tle knowledge is only going to guarantee
if you ignore market sentiment, you may as disaster. Using only one of the three forex
well throw everything out of the window. market analysis is good, but using all three
For example, yesterday on a commemora- sets of analysis will ensure that you have a
tion ceremony of 9/11 Hilary Clinton who better chance of trading success.
will be running for President in a couple of
months was overcome by heat and abrupt-
ly left the ceremony. Hardly an econom-
ic factor. But the market sentiment had
trepidation and you and sent shock waves
in the opening prices of Monday morn-
ings stock markets! The trepidation of her
health has resulted in much being written
about the potential effect of this on mar-
kets.
Note that this article is being written on

11
Trending Market for Binary Options
A Trending Market is one where the price of a currency pair, an asset,

or an index moves in one direction. The trend can either be upwards
or downwards.
Trending Market Downtrend and strong movements in one direction

in order to trade safely and either gain
If we look at the chart below we recognise some pips in Forex or have the direction
that we are looking at a market which is on you chose in Binary Options end up in the
a downtrend. The zig zags along the way money. The stronger the movement in one
are called retracements, meaning that the direction, the more chances a trader has of
price pulls back a little bit and goes some- concluding a winning trade.
what against the market trend.
Therefore having a trending market, clear-
ly moving in one direction is a much safer
market than a quiet market which is slowly
hovering around the same price range.
This is called a ranging market. A ranging
market offers no opportunity for trading
either Forex of Binary Options. In Forex
you are not gaining any profitable pips in a
ranging market, and in the Binary Options
the direction will keep playing around an
ITM and OTM every couple of seconds. A
very risky situation indeed.
Charts on exhibit are courtesy of NetDania.
Trends also have what are known as the

“higher points” in an uptrend also called
the “higher highs”, and the “lower points”
in a low trend marked with “lower lows”.
When opting to trade Binary Options or
Forex using a trending market, it is ideal
to pick strong currencies. These are also
known as liquid currencies because they
are traded heavily. Major currencies would
include, Dollar, Euro and Sterling.
You may be asking why should one pick a
liquid currency? The answer is very sim-
ple, and that is because you need volatility
12
Trending Market
Another Great indicator to use when trying
A ranging market usually occurs before a to establish whether you are looking at a
trading session (early in the morning) or trending market is by using Simple Moving
after a trading session (late the afternoon Averages or SMA as it is also known.
and evenings) Days of particularly slow
performance would also be Monday morn-
ing and Friday afternoon, where traders
are either too sleepy after a weekend, or
too tired after a heavy week. News and
Economic updates are also rarely an-
nounced on Monday mornings and Friday
afternoons, therefore presenting no excite-
ment in the market.
How can a Trader benefit from a Trend-

ing Market?
Apart from watching the charts like a hawk

and tracing lines with your eyeballs, you
can also make use of tools. One such tool This may be a little bit more complicated to
is the Average Direction Index Indicator use because you will need to select differ-
also known as ADX in short. ent periods for the SMA in order to get a
This indictor or tool uses a value between clearer picture.
0-100 to measure whether a price is mov-
ing strongly in one direction and therefore The periods chosen here in our example
showing a trending market or whether it is are 10, 20 and 50 period and plotted on
slow and sluggish and exhibiting a ranging the chart. As we can see the three lines fan
market. out. When the 10 period SMA displays on
top of the 20 period SMA, and the 20 peri-
If the ADX is showing a value which is high- od SMA leans on top of the 50 period SMA
er than 25, then you are already looking at then you have a confirmed uptrend.
a trending market with strong trend move- On the other hand if the have your 10
ments. Naturally, any value higher than 25 period SMA displaying below the 20 peri-
indicates a stronger trend. One must bear od SMA, which lies even lower than the 50
in mind that the ADX is only measuring the period SMA, you have a confirmed down-
strength of the trend. It is not a direction- trend.
al indicator. Therefore the ADX does not
recognise whether the trend is upwards or
downwards. It only measures the volume.
13
In order to get a reconfirmation of whether the indicators which can establish confir-
a trend is clear, it is always best to look at mation of the trending market as opposed
different charts values. Looking from a five to a ranging market.
minute chart, to a fifteen minute chart, and
all the way to an hour chart, can give you a If you are new to trading we recommend
confirmation on the trend. that you open an account with a Regulat-
ed Broker and receive a DEMO ACCOUNT
Naturally, if you are trading Binary Options, which will help you trade safely and with-
you need to be looking at charts with a out any risk exposure, until you have es-
lower time frame than if you are looking at tablished a winning pattern.
Trading Forex. The difference is that if you
are trading Binary on a ten minute expiry, We also recommend that you learn trading
then you should be looking at the 5minute, by joining a social trading group. We can
10 minute charts, all the way to 15 minute offer you an introduction to Mike’s Manu-
charts. But looking at 1 hour charts will not al Signals Group of Facebook with a 5000
give you the information you need to see subscriber base. Follow the best traders by
because the time frames are too far away copying their trades with an 80% success
from the time you will take your trade. rate. Drop us an email from the subscrip-
With Forex, if you are looking at trading tion form for a free introduction.
end of day, then need to be looking at lon-
ger term charts, starting with an hour and
going all the way to 12 hours and daily.
There is no doubt that understanding
what is a trending market is imperative in
trading binary options and forex. We have
established that we do not want to trade
during a sluggish and sleeping market
which is called the Ranging Market as this
Watch this chapter on You Tube
is considered the “No Man’s Land” market
and will not give us direction or profits.
Click to open
Remember also to check the Economic

Calendar for Economic updates, which may
upset a trending market, and deliver price
spikes that would upset the confirmed
trend.
We hope that this post has helped you with

understanding the basics on clearing iden-
tifying a ranging market as well as selecting
14
Support and Resistance Levels –
Trading Tips
Support and Resistance levels have to be the keywords for best used
concepts in Binary Options trading. Even if everyone has their own
idea on how to measure support and resistance levels, there are some
rules which cannot be denied.
What do Support and Resistance Levels Market is a clear rise or a clear fall, but in
look like on a Candlestick Chart? the meantime we have what are known as
PULL-BACKS. Pull backs are reactions from
If you look at the screenshot from a live bears and bulls fighting to gain their foot-
trading session above, you will see that ing. Whoever prevails in the end, will set
there is a clear zig zag pattern. We see the trend. When a trending market moves
that the assets are climbing up. When the up and then pulls back, the highest point
assets are climbing this is called a BULL is called the “Resistance level” whilst the
MARKET. When the assets are sliding lowest point reached is called the “Support
down we call this a BEAR MARKET. Level”.
Remember Bulls are the fighters. They As the market soars upwards, we see new
are fighting to rise higher. They are strong support and resistance levels being cre-
and aggressive. A rising market is a Bullish ated continuously. As such the old Resis-
Market tance becomes the new Support on the
next flight of steps upwards. The reverse
Bears are protective. They are strong and happens when the trending market is a
they will try to keep their ground. One rip slipping for falling market.
from the Bulls horns and they are done! A
sliding market is a Bearish market.
There is never a clear rising to the stars, or
a staircase to hell. What we see in a Trend-
ingSupport and Resistance levels - trading
binary options .
Watch video explaining Support and Re-
sistance Levels in an easy to comprehend
way.
How to Plot Support and Resistance Lev-

els in Trading Binary Options or Forex?
The first thing to bear in mind is that sup-

port and resistance levels are NOT PER-
FECT NUMBERS. Many a time you will see
that the market will repeatedly “test” a new
support or resistance level, until it breaks
15
out and sets a trend! Many times, the can-
dlesticks form shadows at the point where
they are testing the support or resistance
levels.
In the example shown, it is clear that the
market was being tested on the “support”
level. It seemed to be at a point of “break-
ing out” the previous trend. But in fact
it did not. What it was doing, was simply
‘testing’ the market.
How can we ascertain that support and

resistance have been broken?
We need to assume that we are working in

a “Trending Market”. One very important
thing to note is that we must always check
the Economic Calendar to ensure that
whilst trading in a trending market, there is
no influential news updates that may affect
the market. Although we do need volatil-
ity, we do not need a crazy market which
How do Support and Resistance help us will fluctuate crazily from important news
with our daily trading? updates. Trade whenever you are sure
that there is a comfortable trend, without
Once we start becoming familiar with anything upsetting the current mood.
plotting support and resistance lines, it Understanding where the Support level is,
becomes clear very fast that we are dealing becomes a clear indication when it is safe
with assets that are bouncing up and down to trade. If we look at the chart here we
between support and resistance. In a situ- can clearly see where our support level it.
ation where we do not have a “break out” Consider it as a safety net, which is strong,
and we see the point that a currency pair but which can break out! As long as it
are touching the resistance point, we know remains strong on the pulleys and intact,
that we should take a “PUT” signal. we know that we can go for gold and trade
upwards!
The assets will be heading down for the
next time frame until they reach their sup-
port level. Likewise, once the pair reach What are False Breakouts?
the bottom of the rung, and unless there is
a price breakout, you can be assured that Think in Terms of Zones for Resistance and
the pair will be heading up again. Take a Support. In our review for Chart Trading,
“CALL” signal within the time frame of the we examined how line charts give us a very
charts you are looking at.. and presto! You clear picture of where a trending market
are in the money. is heading. A line chart does not give you
information of price entry or exit in a time
frame, but it clearly maps out direction.
16
If there is a pull back or a knee-jerk, this is When the levels break, you will need time
very visible on a candlestick chart. But we to study whether the break-out is due to
are not interested in the reflexes of the a economic update, where hell can break
market. Here we are interested in plotting loose, or whether this is forming a new
what is the INTENTION of the market ! trend. If this is a new trend, take time to
If we look at the line chart below, we can study it, be reassured and it will be time for
easily plot our support and resistance the next round of ping-pong trading! Bina-
lines. The chart looks like a fairy tale of ry options can be lucrative and fun!
mountains and valleys, but it tells us a real
story of how we can take advantage of the
market and make money online!
Support and Resistance Levels –

Tips and Tricks
If the price “Goes through the Roof” what

was previously a “Resistance level” could
now become your new “Support level”. Al-
ternatively, if the price has “hits the bottom
and falls through” your old support level is
now your new resistance level.
If the price hits and bounces back from

the support and resistance levels several
times, it means that your bandwidth is
looking stronger. It is an area where ping-
pong is being played by professionals and
you can take advantage of this by playing
Call and Put between the support and re-
sistance areas.
17
The Ten Commandments
Tips for Smart Trading
If you have been following our intensive course on binary options trading, it means that
you are serious about making money online. However, being the human beings we are,
it is very easy to loose the wood for the trees. Therefore for this purpose, we have pre-
pared a cheat list which you should refer to periodically as it will keep trading real.
Cardinal Rule 1: How much to Invest.
Never invest that what you cannot afford to

lose!
Cardinal Rule 2: Set Your Targets.
Targets are excellent guidelines to keep our

focus. When setting targets, we need to be
realistic. How much money would you like and your computer behind. Go for a walk!
to make every week? If you are not sure There will be plenty of new trades to harvest
what realistic is, then you need to remem- when you are fresh
ber Cardinal Rule 1. As with everything else,
trading exposes you to risk, therefore keep-
ing your risk-reward ratio sensible, will help Cardinal Rule 5: Commit to your daily
you set your targets. Remember targets can trading time.
always be revised!
Trading can start off being a lot of fun, but
can fray your nerves and make you weary.
Cardinal Rule 3: Never Stop Learning. Find the best trading time in your Time Zone,
and commit to a time frame for trading that
There is never a limit to an education, and is in your comfort zone. Remember, trading,
there is no limit to how much you can learn. is like going to the Gym! Daily practice will
Keep abreast of articles and reviews, espe- see a fitter and more profitable trader. Over
cially from real live traders who have experi- trained will leave you without energy. Under
ence and are successful. trained will leave you without profits.
Cardinal Rule 4: Be Disciplined. Cardinal Rule 6: Separate your Emo-

tions from your Trading.
This is probably the hardest rule to follow.
Emotions can wreak havoc on our trading, Again, as with Rule 4, this is extremely dif-
and this is easily the easiest way to lose ficult to achieve. If you are a new trader
your capital and your head. All traders lose your best option is to trade on a demo
trades now and then. The minute you lose account. This will take off the edge of the
two trades in succession, give yourself a sharp adrenalin shots away from the stom-
break. Sit off your chair. Leave the room ach. When you have practiced enough on
18
Cardinal Rule 7: Ensure to have an Trading is not a roulette game of choosing
Exit Clause. red or black. The stakes are high against
you if you play that game since the pay-out
As with rule 2 – you need to set your target is less than 100%.
exit clause. As a trader you will have good
days, and you will also have some bad
days. The market can be nervous, or you
may have slept badly the previous night. Cardinal Rule 10: Log your Trading.
Know exactly at what point you need to Keep a diary of your daily trading.
stop trading. Failure to do so will only
deplete your account fast, and you will not Enter how many trades you took, how
have the chance to recover your cash. many were winning and how many were
loosing, your starting balance and your
closing balance. You will learn a lot about
yourself and your trading habits!
Follow these very basic rules for trading,

and you will set yourself on a course of
success! Remember also there if you are
afraid to GO SOLO, there are great Social
Trading Groups where you can learn how
to trade and shadow professional traders
Cardinal Rule 8 – Learn when enough

profits are enough for one trading
session!
This Rule is the x-ray image of Rule 7. On a

good trading day, know when to take your
profits. Have a strategy of which amount
of profits to withdraw, and what balance
you will re-invest in trading
Cardinal Rule 9 – Learn your basics

like your prayers!
Learn how to read basic charting. Know

where your support and resistance levels
are. Know how to check the Economic Cal-
endar. Failure to do so will have disastrous
results. Remember that Binary Options
19
Trading Charts for Forex and Binary
Options
Whether it is Binary Options Trading or Forex trading, the principles
of understanding price movement, charts and candlesticks remains
the same.
Let us understand what charts are by Pin Bar Trading Charts

looking at the three most popular types of
charts we come across on the better chart- This is where it becomes a little bit more
ing stations. complicated. The bars where they hook,
show the opening as well as the closing
1. Line Chart prices. They also show the highs and the
2. Pin Bar Chart lows. If we look at the bottom of the hook,
3. Candlestick Chart. we understand at what point, the price was
traded at its lowest. If we look at the hook
Here is a description and graphic of each at the top, we can see what the highest
chart and the salient facts that you need to price was traded at during that particular
know about each chart. Bar. Each Bar will represent the time frame
chosen.
Line Trading Charts Example if we are looking at a five minute

chart, each bar will represent five minutes
What line charts do, is that draw a simple of trading. If the chart is instead an hour
line from a closing price to the next closing chart, then each bar signifies an hour of
price, depending on the time frame of the trading. The opening and closing price per
chart. The zig zag movement of the price bar, show the volatility of the price, where
shows us how the price is moving over a it started and where it ended during that
specified time frame. particular band of trading time.
Here is an example of a line chart for the Therefore each time frame is called a
EUR/USD currency pair. BAR. Sometimes these Pin Bar Charts are
also called the ‘OHLC” or else simply put
the Open, High, Low and Close history of
the segment of time it represents. Bar
charts are also known as OHLC O=OPEN,
H=HIGH, L=LOW, C=CLOSE. Each Pin Bar
represent the opening price, the highest
and the lowest point it reached during the
time frame and at what price it closed.
20
If the body is red, it means that the price
will have closed lower than it started. The
size of the body is the difference between
the opening and the closing price.
Trading charts are a very helpful visual aid
to trading. Although there are these three
types of trading charts, the candlesticks are
without a doubt, the more visual ones and
have several advantages over the other
two types of trading charts.
Candlestick Trading Charts
The Candlestick Trading Chart is showing

exactly the same information as the Pin
Bar Trading Chart, but it is more colourful
and much easier to read. Candlestick trad-
ing charts can come in solid black colour,
but the more exciting ones are in blue
and red. The body part of the candlestick
shows whether the price in the time band
which the candlestick represents opened
or closer higher or lower than the starting
price. With the help of coloured candlesticks a
newbie or new trader, or beginner can
start understanding the price movement
Example a bar with a blue body indicates of currency pairs, commodities, assets and
that the price closed higher than it started stocks.
off. The heads and the tails, or tips and
wicks are the extent to which the price
dropped or escalated.
Visually, candlestick trading charts are very

easy to understand and do not require too
much concentration (which we want to
apply to our trading in reality!).
21
What are Binary Options Signals? Robots?
Auto Traders? Semi Auto Traders? Manual
Signals?
In order to be a successfull trader you need to

have basic knowledge about technical and senti-
mental analisys, japanese candelstick and so on.
Once we start understanding candlesticks Sometimes you may want to use a software that
and the myriad of names by which they are will help you predict movements on the market
called – all very cool names – such as Dojis without spending too much time on doing deep
and Shooting Stars – we will start looking analisys. What you may find out is that just have
at the candlesticks and putting patterns in missed perfect opportunity to enter the trade.
our trading. Pretty much like the Milky way! That’s why it’s a good solution to have access to at
least one signal software. Most autotraders have
one of these 3 options described below:
Finally candlesticks are instrumental in
helping us understand market changes Fully automated Signal Software
and using their patterns to trade with. We is built via an algorithm system which sends outs
will be looking at the uptrends and down- a signal when the market reaches the optimum
trends and decide which direction we shall levels as set in the algorithms. Such a software
be riding our trading waves. basically takes over your account once you install
it, avoids any manual action and trades on your
Here are some recommendations of excel- behalf. Example: Binabotv2
lent free charting stations where you can
start experimenting with how charts look. Semi-Automated Trader
is a signal system which is still working in the
The drop down menus from Net Dania
same algorithm manner of an Auto Trader – but
for example, help you select, the asset or the signals are sent to the Trader via email or
currency pairs you want to explore. Then sms. It is then up to the Trader whether or not to
the next widget opens up the different take action on the signal. Example: Copy Buffett
time frames, and finally for when we start
trading a little bit more professionally we Manual Signal Service
can even find a whole plethora of trading This is usually a community of Experienced Trad-
tools. So if you are a newcomer to this site, ers with a proven Track Record – who send out
brace yourself, for rewarding hard work. signals in a group and Traders can then follow or
Understanding candlesticks, will light up copy Trades Signalled. Example: Mike’s autotrader
your trading life.
THERE ARE NO LESS THAN 2 NEW AUTOTRADERS
BEING PUSHED IN THE MARKET EVERY DAY…. Even
if they are free, they are still expecting you to fund
an account, where you will later loose all your
money because the software IS dummy.
Watch this lecture on You Tube GO TO -> List of TOP autotraders and reliable
signal software.
22
Japanese Candlesticks and Binary
Trading
Japanese candlesticks as the name implies, were invented by the
Japanese. It was as their way of making technical analysis in order
to trade rice. This system was discovered by Steve Nison from a
Japanese broker. The technique gained popularity in the nineties
and started being used as a measure to calculate trading volumes.
Without Steve Nison, there would be no Japanese candlesticks.
What are Japanese candlesticks ?
Japanese candlesticks can be used to show

the volume of trading within any trading
time frame. If you are looking at short
term trading, or binary options, you will
be looking at candlesticks that show trad- If we look at the visual above we under-
ing patterns of one minute, 5 minutes, 15 stand the following price movement in
minutes, half an hour, hour etc., If you are each of the Japanese candlesticks.
looking at forex or long term trading, you
look at candlesticks that are in a 24 hour • The top of the candlestick is called the
time frame, two days, one week or one upper shadow whilst the bottom is
month time frame. A candlestick shows a called the lower shadow. These two po-
lifetime performance within its time frame. sitions show us how far the price shot
Each candlestick on any time frame shows up (upper shadow) and how far down
the volume of trading in that particular it sank (lower shadow) in any time
time, from the beginning to the end of that frame. Therefore if we are looking at a
session. In the fight between the Bulls one hour chart the span of the top to
and bears, each Japanese candlestick tells the bottom is the price movement that
you a story. As the story goes. It tells us occurred in one hour.
who started off the fight, who had the best • The solid part of the body is the actual
brute force, and who eventually won the net positive or net negative movement
session. The tug of war between the Bulls between a currency pair or an asset.
and the Bears in any time frame is snap The solid part of the Japanese candle-
shot in a Japanese candlestick. stick shows us the position where the
Let us visualise this analogy. Japanese Can- price started and the position where it
dlesticks in action! ended. The solid body shows us and
entry and an exit price. If the price has
risen it is shown as a blue body. If the
price has fallen from the opening price
to the closing price it shows off a solid
red body.
• The top of the solid body on a red
candlestick is the starting or entry price
in that particular hour whilst the lower
solid part of the candlestick is the exit
price or ending price. Alternatively the
lower part of the solid blue Japanese
23
candlestick is the entry price – also On the other hand, Japanese candlesticks
called opening price – whilst the top with short bodies, are displaying a mar-
part of the solid body is the exit price – ket where buyers and sellers are equally
also called closing price. The shadows strong, or equally sleepy and the tug of
are the full price movement from the war is going nowhere. The price opens
lowest ebb to the highest peak during and closes at a similar price. This is a point
the time frame in our case one hour. which gives us a lot of information about
the market. If the market is asleep, or
dead, or inactive, we do not want to trade.
If this is a tug of war between Giants, we
Long bodies vs Short Bodies. Japanese want to wait for the outbreak and cash in!!
candlesticks.
The size and shape of the Japanese candle- Japanese Candlesticks – Their shadows
stick tells a story about the trading nature tell us mysterious stories.
of bulls and bears in that particular time
frame. In forex and binary trading, Bulls Shadows which form at the top and bot-
are the aggressive traders hitting with their tom of Japanese candlesticks give us very
horns, and they are the Buyers. Bulls are important information about a trading
the protective ones and the are the sellers. time frame or trading session.
A Bullish market is a buyers market and
will create an uptrend. A Bearish market As explained earlier the upper shadows
is a sellers market and will create a down- signify how high the price rose in that
trend. Never for an is trance underesti- specific trading session. Whilst the lower
mate the Bears. They are just as strong as shadows signify how low the price fell.
the falls. This is a clash of the Titans. Candlestick with very long shadows tell us
that the price rose or fell far past the open-
ing and closing prices. They also signify a
lot of action, very much like the long can-
dlesticks with long bodies. The difference
is that whilst the candlesticks with long
bodies signified that either the Bears or
the Bulls were the net winners, in the case
of long shadow candlesticks the net winner
had only a marginal success. The price was
a tug of war with no one winning much
brownie points in that trading session!
In Japanese Candlesticks Long Upper Shad-

A Japanese candlestick with a long body ows signify that the Bulls or the Buyers
shows a strong activity in trading. A long were strong and were pitching for a higher
red candlestick means that the Bears are price, but for some reason the Bears still
dominating the market. A long blue candle- took control and lowered the price to the
stick means that the buyers are stronger level they wanted. On the other hand a
and it a Bullish market. Big candlesticks Long Lower Shadow means that although
indicate big activity in the market. If they the Bears or the sellers were very strong
create a trend, this is s perfect setting for and drove the price down, the Bulls still
setting up a trade. fought with their horns until the last drop
and drove the price up to the level close to
where the price had originally opened.
24
In the next session we shall be dealing with
Basic Japanese Candlestick Patterns and
see how the behaviour patterns in pairs or
trios will tell us much more about how the
market is reacting to prices, than when we
look at Japanese candlesticks individually.
If you’re interested to dive deeper go to

Amazon by clicking the image below where
you can order one of these recommended
books to amplify your knowledge.
25
Basic Japanese Candlesticks –Pattern
In this second part of understanding basic Japanese candlesticks

we are going to check out patterns and their significance in trad-
ing. Here is a list of strange names for different candlestick pat-
terns which all give us some important information about the direc-
tion where a price is headed.
Marubozu A Red Marubozu shows us that the entry

price was the higher part of the basic Japa-
Marubozu sounds like a crazy name for nese candlestick body and the closing price
basic Japanese candlesticks. What it means is the lower or the bottom of the candle-
is that there are no shadows from the bod- stick. This is a very Bearish candlestick. The
ies. This means that the price opened at Marubozu candlestick shows that either
one spot and rose or fell all the way to the the buyers or the sellers are having full
closing price. control of the situation.
Spinning Tops
Basic Japanese candlesticks have a variety

of names depending on their shape and
size. Spinning tops have long upper shad-
ows and long lower shadows. Their bodies
are very small. Their appearance is very
much like a Spinning Top. What these basic
Japanese candlesticks mean is that there is
an equal fight between buyers and sellers
and as a result there is indecision in deter-
The price movement depends on whether mining the price.
you are looking at a hollow or full candle-
stick or a red and blue candlestick.
A Blue Marubozu shows us that the entry

price was the lower part of the body and
the closing price is the higher or the top of
the candlestick. This is a very Bullish can-
dlestick.
26
in the price tug of war. The price may move
above and below the opening price, but in
the end closes in the same position or very
close to it.
None of the traders will have managed to
take control of the price and therefore the
price remains at a standstill.
Below are examples of the four tyes of Doji
basic Japanese candlesticks. Although you
see that there is a variation from the upper
and lower shadows, sometimes there is
absolutely no movement. The result shows
that negligible price movement.
The real body of the candlestick, whether it

is red or blue (negative or positive) is very
short. This shows that the opening and
closing price are very close to each other.
Therefore there has been little change in
price. The fact that the shadows are so
long, indicates that the Bulls and the Bears
have been fighting it out, however none of There are four types of Doji
them managed to have a winning hand. Special attention should be given to the
Although the opening and closing price has preceding candlestick when a Doji is
been very close, the price had moved up formed.
and down significantly during the trading
session. However no one was a winner. Doji could be a form of exhaustion! If the
If a spinning top candlestick forms during previous candlestick to a Doji is a series of
a downtrend, this usually means that the Marubozus and long bodied candlesticks
Bears have got no more energy left to push of the same colour, then it could mean that
the price down and a reversal could be the buyers or sellers which were previous-
seen soon. ly predominant, are now getting tired of
holding their ground. Hence, the opposi-
Alternatively, if the spinning top candle- tion is now ready to take control.
sticks forms during an uptrend, this signi-
fies that the Bulls are out of fuel and they
cannot sustain the price rise. This could be Doji and a Long Red Candlestick
a reversal to a downtrend very soon.
As such if a Doji forms after a pattern of
red candlesticks which would have been
Doji pushing the price down, the buyers are
now waiting in anticipation for a price
In Basic Japanese candlesticks Doji are can- break out in their favour. It means that the
dlesticks which have an identical open and sellers are very exhausted and are now
close price – or have such a similar open- weak. If the price is to continue falling, it
ing and closing price that their bodies are would need a strong influx of sellers, but
extremely short. A Doji’s body is so small at this point, the sellers are maxed out!
that it appears to be a thin line. Buyers are making a bee-line to get into a
great price and make some money by driv-
Similar to Spinning Tops, the Doji are ing the price upwards.
showing that there is a huge price war
between buyers and sellers, but none of
them have moved from their stand point,
27
very long bottom shadows but almost no
top shadow. The Hammer forms when a
there is a downtrend. It is called the Ham-
mer because it is hammering out the bot-
tom floor of the price support level.
In a market where there has been a signif-
icant downtrend, and the price has been
falling, a basic Japanese candlestick which
forms in the shape of a hammer signals
that the bottom is near.
It is very likely that after the formation of
a hammer, the price will start rising again.
The very long shadow beneath the short
and stout body tells us that the sellers
have been fighting to keep the price down,
but have been loosing ground. They buy-
Doji and Long Blue Candlesticks ers are the net winners, but they have only
gained very little in terms of price push up.
New sellers are breathlessly trying to keep Although a Hammer is a very strong in-
their foothold, but their strength is fading dication for a reversal, this does not give
fast. After a series of conquered candle- a trader carte blanche to enter a buying
sticks, which have pushed the price up- trade. More confirmation may be required
wards, we see a tie in the form of a DOJI. for the perfect trade set-up.
Therefore a reversal is almost a guaran-
teed fruit flan! The buyers are now excited How does a Trader confirm a Reversal
about the possibility of selling at a high after a Hammer Candlestick formation?
enough price and making some money as One typical confirmation would be to see
the price falls. another blue candlestick or a succession
of blue candlesticks forming, and closing
higher than the previous closing price.
Hanging Man and Hammer
In basic Japanese candlesticks the Hanging

Man and Hammer look exactly the same
but have different colours and therefore
different meanings. A lot depends on the
previous price movement. In both cases
the Hanging Man and the Hammer have
28
How to Recognise a Hammer mer basic Japanese candlesticks also sug-
gest the possibility of a reversal pretty
• The real body is about one third the size much like the Hammer and the Hanging
of the long shadow below it Man. These candlesticks however work in
• The upper shadow is almost non-existent, different situations.
or very slight
• The upper body is always at the upper
end of the trading time frame or trading
range.
• Whether the colour is blue or red, it is
insignificant.
The hanging man is a reversal from an up-

trend. It is a bearish reversal pattern. This
can see fall as far as the resistance level or
even break out from that level. What this
basic Japanese candlestick shows you is
that the sellers are becoming much stron-
ger than the buyers.
The lower long shadow indicates that the

bears have pushed down the price much
lower during that particular trading ses-
sion. The buyers or the bulls fought back
but did not have enough strength to get
much past the opening price. They were The inverted hammer happens when a
still net winners but not strong winners. price that has been dropping shows up a
possibility of a reversal. The long shadow
This is an automatic alarm system which on its upper body indicates that Bulls are
tells us that the buyers are becoming very fighting hard to push the price higher.
weak and that they may eventually be loos- Although the closing price is not far from
ing breath. This is where the sellers will be the starting price, the fact that trading was
flexing their heels to take advantage of the pushed so far high, is a strong signal of a
situation. reversal. You must of course not assume
that this will produce a definite reversal
in a trend. Ideally you get a price confir-
How to Recognise a Hanging Man mation from a series of blue candlesticks
which close at a price higher than the
• The real body is about one third the size inverted hammer.
of the long shadow below it
• The upper shadow is almost non-existent, The shooting star is a possibility of reversal
or very slight on an uptrend. It is a bearish reversal and
• The upper body is always at the upper therefore will take the price down after a
end of the trading time frame or trading steady incline. The candlestick itself looks
range. quite identical to the inverted hammer, but
• Whether the colour is blue or red, it is it happens during an uptrend. The shape
insignificant. However a red body is more tells us that the price has opened at price
bearish than a blue body. where it was driven quite high by the buy-
ers, but eventually pulled back below the
original entry price.
Shooting Star and the Inverted Hammer
It is a situation which shows that although
The shooting star and the inverted ham- the buyers have attempted to keep the
29
price bolstered, they did not manage, and
although the sellers did not make a signif-
icant impact on the price, they were still
the net winners. This usually indicates a
reversal in an uptrend. As with the invert-
ed hammer, a trader needs to ensure that
the trend set by the shooting star candle-
stick is confirmed with future red candle-
sticks which close at a price lower than the
shooting star basic Japanese candlestick
itself.
Basic Japanese Candlesticks Conclusion
As has been shown, the shape and size

of basic Japanese candlesticks play a very
important role in determining where the
price is going to be headed. Used on their
own candlesticks may not be telling us
much about themselves, but when they
are used in conjunction with other candle-
sticks, they tell us a story of a perfect trade
set-up.
Register with IQ Option to

get 1000$ funds on demo
account
30
Japanese Candlestick Patterns – Dual
and Triple Patterns
In this third chapter about Japanese candlestick patterns we will be
looking at how dual and triple patterns can help us understand the
direction of a trending market and when to prepare for a reversal.
These Japanese candlestick patterns are strong signals which can
help us set the perfect trade.
Tweezer Tops and Bottoms Japanese Here are some characteristics that can
Candlestick Patterns help us spot tweezer tops and bottoms
formation in Japanese candlestick pat-
When looking for the perfect trade set-up terns:
we are always searching for the right entry
time. Therefore finding a strong reversal • The first candlestick has in the same
pattern is the signal we need to pay special behaviour pattern as the general trend.
attention to. Therefore, if it is an uptrend then the first
candlestick will also be a blue candlestick
or a buyer’s candlestick.
• The candlestick that forms immediate-
ly after the first candlestick will have the
same shape but will be in the opposite
direction. If the previous candlestick was
a bullish candlestick, then the subsequent
one will be a bearish candlestick.
• The shape of the candlesticks will be
almost identical. Their shadows should be
of equal length. Their bodies should also
have the same volume. The difference
The “tweezers” are dual candlesticks which
stands only that Tweezer Tops will have
show us a reversal pattern. After an long
the same highs whilst the Bottoms will
set of candlesticks which will have set an
have the same lows.
uptrend or downtrend, spotting a pair of
tweezer top or bottoms candlesticks may
well signify that there is going to be a re-
Bullish and Bearish Engulfing Candle-
versal in pattern.
sticks
The shape of the candlesticks are literally
From the visuals above we can see that a
like a pair of tweezers and when they form
bullish engulfing pattern occurs when a
their function is to tweeze off the direction
large red candlestick forms after a negative
of the previous trend.
(red) candlestick of lower value. The larger
bullish candle is literally engulfing the pre-
vious bearish candle. This signals that the
bulls are coming on strong and may see a
reversal and uptrend.
31
candlestick has a long body closing well be-
low its opening price. The baby bar will typ-
ically be a bearish candle which will close
higher than its opening price. The opposite
is true for a Bearish Harami.
What do these Harami Pair of Japanese

Candlestick Patterns mean?
It means that either the Bears in a down-

Alternatively a bearish engulfing pattern trend or the Bulls in an uptrend are getting
occurs when a large negative candle (red) exhausted and that the market has come
forms after a weaker bullish (blue) candle- to a muted reversal. The smaller candle is
stick. This bearish candle “engulfs” the bull- the candle that is determining the real an
ish candle, which signifies that the buyers conclusive movement. It is decreasing the
are loosing their power, and it is probably volatility. That is why a Harami is called an
time for the buyers to take over the market inside bar.
and reverse the trend.
A Harami is not a very strong signal of
These dual Japanese candlestick patterns pattern reversal – however it pays to watch
are crucial for us to learn and understand out for it because it signifies that a change
how they influence price. is about to happen. Our analysis and un-
derstanding where a market is heading will
be even more clear once we start under-
Harami Candlestick – Japanese Candle- standing triple Japanese candlestick pat-
stick Patterns terns.
Harami, in Japanese, where the candle-

sticks originated from means pregnant. A
Harami candlestick pair resemble a mother
and its child.
If we have a look at the graphic below we Watch it on video with live examples
see that the body of the second candlestick
is well within the body of the first. Here we
have a mummy body and a baby body.
Japanese Candlestick Patterns – Triple

Patterns
Morning Star and Evening Star Triple For-

mation
This triple Japanese candlestick pattern

usually forms around the end of a trend.
The way they shape up could be a strong
indicator that a reversal is about to hap-
pen, and this will be our set-up to grab
some pips or enter into a binary options
trade.
In the case of a bullish Harami, the first

32
• As soon as we have confirmation of the
change in trend with a second or third
candlestick we enter the market with a low
value trade. If the market re-confirms the
reversal, we can enter into a second trade
for a larger value with the next 15 or 30
minute expiry.
Three White Soldiers and Three Black

Crows
When three consecutive long candlesticks

follow each other, in the opposite direction
How will be know that an Evening Star or a after an uptrend or a downtrend, we un-
Morning Star is forming? How can we use derstand that a reversal has just occurred.
this for a trade set-up? This trio of Japanese candlestick patterns
are considered very fortuitous. They are
Evening Star patterns form when the first possibly the strongest signal to indicate
candle is a strong bullish candle in a strong a reversal in a trend, and therefore it is
uptrend. The second candle which forms a perfect time for traders to make some
right after that will confirm the uptrend money.
but will be small and with a very short
body. Pretty much the shape of the “spin-
ning top”. This formation tells us that the
market is getting tired and the buyers are
loosing their power. The third and last can-
dlestick will be a bearish candlestick which
has a long a strong body. The sellers will
have taken control of the market and are
ready to tear of the buyers limb by limb.
The formation of the Morning Star is iden-
tical to the Evening Star but in a different
trend setting. In this case a strong bearish
candlestick in a downtrend is followed by a
bearish “spinning top” , which is then fol-
lowed by a strong bullish candlestick. The Three White Soldiers – a Strong Japa-
trio tell us that the bears or the sellers are nese Candlestick Patterns indicator
now exhausted and loosing ground, whilst
the sellers are itching to buy in at a good In this triple formation we see that this set
price and make some serious money. of candlesticks form after a strong down-
trend. The first candlestick is called the
“reversal candle” This reversal is further
confirmed by the second candlestick. The
second candlestick should have an even
These set ups in binary option trading longer and stronger body than the rever-
can be used to our advantage as follows: sal candlestick. It usually has very little or
no shadow at all implying that the buyers
• Depending on the value of the Japanese have taken over the market.
candlesticks, we set up our time scale.
Therefore if we are looking at a five min- Finally the third candlestick forms. This
ute chart, we should be setting up a trade should have an equally strong body and
which is in a 15 or 30 minute time frame. ought to be as long and strong as the
33
second candlestick. The longer the third close above the first and bearish candle-
candlestick is, the better for a confirmation stick’s low thereby confirming that the
that the trend has fully reversed. This can- buyers are now stronger and have control
dlestick as the previous one ought to have of the market.
very little in terms of shadows. This shows
that the buyers are now in full control of A three inside down trio will form in an
the market. opposite scenario. This trio form at the top
of an uptrend and indicates that the trend
The soldiers are marching in! is probably about to reverse.
The three black crows are Japanese candle- These are the Characteristics of Three
stick patterns which act out the opposite Inside Down Trio!
situation from the three white soldiers.
When this formation occurs after a strong • The first candlestick is a Bullish candle-
uptrend we know that the dark and sinister stick which is quite long and strong
crows will be ruling the market and a rever- • The second candlestick is the first rever-
sal has occurred which sinks the price to a sal candlestick and will be short and stout
new downtrend. but in a Bearish direction.
• The third and last candlestick is strong
and long and closes below the first candle-
Three Inside Up and Down – A Trio of stick’s low – therefore signifying that the
Japanese Candlestick Patterns sellers have taken over the market!
As with the previous trios of Japanese

candlestick patterns, a three inside up Conclusion on Japanese Candlestick
formation signifies as strong reversal of a Patterns
bearish market. Although not as strong as
“the three white soldiers” it is a good indict- This study on Japanese candlestick pat-
or and eye opener that the downtrend is terns should help us with successful trad-
possibly over. ing habits. Waiting for Japanese candlestick
patterns to form can require patience. But
the wait will be well worth it. However one
word of warning! Before entering a trade
based on technical analysis in a trending
market, a trader should always check the
Economic Calendar for any unexpected
volatility, which may ruin the “perfect set-
up”
What are the Characteristics of a Trio of

Three Inside Up Candlesticks?
• The first candlestick which is at the bot-

tom of a downtrend is a long bearish or
red candlestick.
• The second candlestick is a bullish or blue
candlestick and this should be at least as
high as midpoint of the previous candle-
stick
• The last bullish or blue candlestick should
34
Fibonacci Retracement and Extension
Lines
Fibonacci is a great tool to use in both Forex and Binary Options
Trading. The Fibonacci retracement and extension studies are prob-
ably the most accurate ways of measuring support and resistance
levels accurately
Who was Leonardo Fibonacci? This is the basic teaching of “The Fibs”
which are also known as the “golden
Leonardo Fibonacci mean”. However you do not need to both-
Wikipedia describes the great Leonardo er your head about all these numbers and
Bonacci or Fibonacci as “the most talent- work them out for yourselves, because
ed Western mathematician of the Middle luckily today Fibonacci Retracement and
Ages” He introduced Europe to a sequence Extension levels are tools which are incor-
of Fibonacci numbers. He popularised the porated in most of the Free Charting Sta-
Arabic numerals in the western world from tions.
0-9.
He became very popular when he dis- What a trader should know that the Fibo-
covered ratios arising from the following nacci Retracements Levels and the Exten-
sequence of number 0, 1, 1, 2, 3, 5, 8, 13, sion Levels are both formulated on this
21, 34, 55 etc., incredible study.
As you can imagine this series of numbers Software which incorporates the Fibonacci
is derived from adding 0+1 = 1, 1 + 1=2, Numbers for AutoMated Trading and Sig-
2+1 =3, 3+2 = 5 etc, nal Software
After the first set of single numbers, if you

measure the ratio between any number by
its subsequent number you always get the
result of 0.618
Therefore if you divide 13 by 21 you get

0.618, if you divide 34 by 21 you get 0.618
and if you divide 55 by 34 you get 0.618.
This the behavioural pattern of the se-
quence.
To complicate or make matters more awe-

some, if you divide alternative numbers,
you always get 0.382. Really amazing. Try
it out for yourselves starting with 13 divi- Using the Fibonacci Retracement and Ex-
sion by 34 and 21 division by 55. Bingo the tension Levels as indictors for Support and
pattern is unshakeable! Resistance Levels
35
Market movement is watched by millions if you are looking at the Fibonacci Exten-
of scavenger eyes all over the world at the sion level, you will want to discover the
same time. Because of this, many are buy- best resistance level, and take a “put” trade
ing and selling at the same time – thereby whilst watching the trade plummet to the
creating the prophetic support and resis- support level.
tance levels.
If you are not sure what support and resis-
Since many traders are plotting the Fibo- tance levels are, we recommend that you
nacci retracement and extension tool at read our article of this subject HERE.
the same levels, it follows that most trad-
ers will be using the tool as a benchmark
to take profits.
If you have managed to read so far into

this post you are probably asking yourself,
how am I going to use this magic tool and
grab some profits myself?
How to Find the Fibonacci Retracement
and Extension Levels
Well that is not that difficult once you know
how! That is what we are about to reveal.
Fibonacci Retracement Levels
As explained earlier most charting stations
0.236, 0.382, 0.500, 0.618, 0.764
provide tools encrypted on their charts.
Fibonacci Extension Levels
0, 0.382, 0.618, 1.000, 1.382, 1.618
What you, as a trader need to identify is
Basically, the “Fibs” need to be used either
the following two points.
the market is on a retracement when the
1. The Swing High
price hits the support line of the Fibonacci
2. The Swing Low.
tool, and take a “Call Trade” or “Buy”. Or
If you know how to identify these two
else take a “Put Trade” or “sell” when the
points, you are on your way to understand
extension levels have hit the resistance
Mr. Fibs even though he has been dead
level with the Fibs.
and buried some 900 years ago!
So how does one find the Support and

What is a Swing High? A swing high is a
Resistance Levels with Fibonacci Tools?
candlestick or pin bar that is at the very
least two points higher than the candle-
Let us first consider the Retracement Lev-
sticks on either side of it. On the other
els created with the Fibonacci Golden Rule.
hand a Swing Low is a candlestick, which
Incidentally, the Golden Rule is true to any
has two higher lows than the candlesticks
part of nature as well. It is the magical
neighbours on both sides of it.
set of numbers which rule how rabbits
are born exponentially, how the petals in
flowers fall within the same number brack-
et, and finally the sheer perfection of the
Fibonacci Retracement Tool and a
nautilus shell and its many compartments
Trending Market
are exactly equal to the Fibonacci “golden
ratio”. In forex and binary options trad-
First and foremost, as with most trading
ing this becomes a self fullfilled prophecy.
tools, the Fibonacci tool works best with a
Every trader is watching the Fibonacci lines
trending market. If you are using the Fibo-
and will act on them. So how are we go-
nacci as a Retracement Tool you will want
ing to join the band wagon of profit taking
to discover the best support level and take
traders?
a “call” whilst the trade hits the “roof” or
the Fibonacci resistance level. Alternately,
36
Let us start off by understanding the Fibo- So what do these graphs tell us. Basical-
nacci Retracement Levels. ly if we are expecting the recent uptrend
between the EUR/USD to retrace, the price
should find a home or support at one of
The Uptrend Scenario the Fibonacci retraction base lines plotted
on the charts. Since many traders all over
First you must identify the most recent the world are watching exactly the same
“swing highs” and “swing lows”. We have levels as yourself, one would expect many
already understood how to find these lev- traders to be to be buying the currency or
els when we plotted our personal “support placing call trades when the price settles at
and resistance levels”. All you have to do is any point of the support levels created by
point at the highest point on your chart (or the Fibs.
your swing high) and move your cursor to
the lowest point on your chart (the swing If we look at what transpired after we had
low). This is true for a downtrend. plotted our graphs, it is easy to understand
how plotting the Fibonacci Retracement
For an uptrend the reverse is true. This levels would have been profitable. Once
time you find your swing low, and hit your the price pulled back all the way down to
cursor and move it to the highest point of the level of 38.2% it continued on its jour-
your chart ie., the swing high and end your ney upwards and went literally through
cursor line at that point. the roof. The price got tested at 38.2% but
never fell beyond it. If anyone had put in a
In the visuals presented we are showing “call” trade or bought at the 38.2% level, he
the swing highs and swing lows for the would have definitely been In the Money
EUR/USD earlier this week (week 28 of or made a lot of pips.
2016)
The Downtrend Scenario
In a downtrend we need to plot the Fibo-

nacci Retracement in the opposite manner.
In this case we need to find the Swing High
first. Click on it using the Fibonacci tools
and drag it all the way down to the Swing
Low on the same chart.
The points plotted this time round are at
at 23.6%, 38.2%, 50%, 61.8% and 76.4%
As explained earlier all the main charting

stations will offer the Fibonacci Tools for
free to plot on their charts. In our chart,
courtesy of NetDania.com we have plotted
the Fibonacci retracement or retraction
levels by clicking on the Swing Low and
then moving the cursor all the way to the
Swing High point. As you can see we have
several lines which were formed by the
Fibonacci Tool itself.
The Fibonacci retracement levels were at Fibonacci Trend lines. Fibonacci Retrace-
23.6%, 38.2%, 50%, 61.8% and 76.4%. ment and Extension levels
But in the opposite direction!
37
How should Traders use the Fibonacci If you took a “down” trade or “sold” at any
Retracement + Support and Resistance point in time on the ovals, you would have
to take trades? certainly been able to make some money
trading online.
When a trader is able to spot potential sup- Remember that the Fibonacci numbers are
port and resistance levels, that is the point not Foolproof and that they are there to
where a trader can enter the market and give us an indication of price entries. Com-
make some money. bining this information with other tools
such as the Bollinger Bands will give you
Since many other traders are watching the price confirmation!
same support and resistance levels, taking
a trade where the price settles means that Next post will be dealing with using Fibo-
you will have a much better chance of see- nacci Retracement with Trend Lines and
ing the price bouncing from that level. Japanese Candlesticks.
The retracement level is when the price is

going to pull back and give the kick back
that we know happens always after a se-
ries of trending candles.
Alternatively with the extension, we know

that we are looking at a trend confirmation
after a pull back.
Watch this video where the fibo-
Here are examples which show us the best nacci retracement and extension
examples of taking trades with the Fibo- rules are explained
nacci resistance and support lines.
We now have the set ups to increase your

chances of find a good entry point. Al-
though we are looking at historical infor-
mation, we can clearly see that the support
and resistance levels created by the Fibo-
nacci golden rule always held and gave us
an opportunity to trade.
38
Binary Options Risk Management
If you are new to trading binary options, and your scope is to make
money, risk management is the most important subject that you
need to master. Unless you learn how to reduce your risk of poten-
tial losses you will never be able to successfully see your capital
grow.
WHAT IS RISK MANAGEMENT? stant profit and NOT a gambler right? If

you become a good trader, you will always
Funnily enough, this is probably one of be a winner and not just hit the jackpot
the subjects that is not taken seriously by once.
traders, because most new traders are just
itching to start trading right away and do HOW MUCH TRADING CAPITAL DO YOU
not give enough attention to the size of NEED TO TRADE BINARY OPTIONS?
their capital.
Most binary Options Brokers require a
Risk management is not weighing out minimum amount to fund an account and
whether you can afford to loose “X” this is usually around $250. It takes money
amount of money on one trade, and hitting to make money. It is as simple as that. But
the PUT/CALL button. The term reserved the decision on your start up capital has to
for such strategy is called GAMBLING. be treated like a business proposal.
When trading without a risk management
plan, you are in fact just gambling your NEVER RISK MORE THAN 2% PER TRADE
capital.
It is common knowledge that to have
Trying to look for the “jackpot” instead of serious growth you will need a funding
having a long term strategy? When you capital of at least $5000. If you are consis-
have a good plan for risk management you tent and practice proper risk management
are not only safeguarding your capital, but you should see this capital grow with the
in the long term you will realise that you same amount every month. Most traders
have increased your earnings steadily. fail due to undercapitalization. So if you
are unable to come up with this capital,
that you can afford to loose, use a Demo
When people go to casinos looking for the Account with the equivalent capital until
jackpot, some may find it, and make a lot you learn to trade successfully and until
of money. But if you ever wondered why you are financially ready to commit. You
Casino’s are always profitable, it is simply may be asking WHY would I need a $5000
because they make a lot more money from capital to start off with? The simple rule
people who loose. The same is true of you need to follow is to NEVER risk more
binary options trading. If you are trading in than 2% per trade. If you are planning to
the hope that you guess the right direction, risk more, then this is what may happen to
with large sums, your chances of burning your account in a scenario where you loose
your account fast, are very good. Now the every trade. Here we see trades taken at
point is that if you are reading this, you 2% trade risk, 5% trade risk and 10% trade
would like to be a great trader with a con- risk. Check out the balances in each sce-
39
nario after just 10 loosing trades.
Keeping a strong money management

strategy will certainly improve your chanc-
es of capital growth.
New to Trading?
If you wish to start trading immediately
without too much knowledge, the best way
to do it minimizing your capital risk, is to
copy trades made by successful traders.
Trading binary options carries risk of loos-
ing your capital unless you know how to
trade. Join a signal group such as Mike’s
Manual Signal Group and copy traders who
are plotting strategies round the clock.
Send us a quick email at support{at}bina-
ryoptionsheriff.com so that we can give
you an introduction.
40
Bollinger Bands – How to use in Binary
Options
Bollinger Bands are very simple and useful indicators, which a day
trader needs in his toolbox. There must be a multitude of ways to
gain winning trades, but applying the Bollinger Bands is definitely
one of them.
How to apply Bollinger Bands? Though the indicator is simple, it is very

powerful. We will now demonstrate how to
Work with the Bollinger Bands indicator in use the Bollinger Band effectively in your
the same manner that you would use your daily trading.
tools from a toolbox.
The Bollinger Bands were developed by The Bollinger Bounce

John Bollinger, hence the name. They are
used to measure movements when a mar- There is one thing that you can be sure
ket is volatile. of in trading. At some point the price will
always return to the middle of the bands.
So what this tool does, is that it tells us When the price hits the top of the bands,
whether the market is Quiet or Active. and exits, you can rest assured that the
When the market is passive and making price will go down again towards the mid-
snail like movements, the bands contract. dle.
But when the market is Active, and on fire,
the bands expand. As we have already On the other hand, when the price hits the
learnt from previous educational articles, bottom of the bands, and exits the brack-
NEVER TRADE when the market is sleepy. ets, you can deduce that the price will rise
Restrict your trading when the party is again and go towards the middle. We can
rocking with a lot of price action. refer to the same chart to see the points
where a day trader could be making some
Notice from the chart below, how the lucrative trades!
bands contract and expand depending on
the price movement. Come on Bollinger, show me the Money!
What the bands are effectively doing is,
that they are acting as a resistance and
support level. What we have previously
called the “brackets” are in fact the support
(bottom) and resistance (top) level. This is
very clear when the bands are wide. When
the market is “quiet” we have a “ranging”
market. With a ranging market, you will
never have the sharp drop or escalation
that we obviously need to put us safely in
the money whilst trading. To know that
you have a ranging market and avoid it,
you need to look for the Bollinger “brack-
41
ets” and see that they are narrow and
parallel. We hope that this article has shed some
light on how to use the Bollinger Bands as
a tool in your trading tool kit. We recom-
mend that you launch Net Station on Net
Dania, which is free of charge, and you
can experiment with different time frames
and the Bollinger Band tools. If you go into
historical data, you will certainly find many
occasions where plenty of money could be
made.
The Bollinger Squeeze
The Bollinger Squeeze is a great alert in-

dicator. It shows us that something excit-
ing is cooking in the pot. It is very easy to
detect, and it is self-explanatory. When the
bands squeeze together, it is as if they are Watch Sheriff’s video review on
rubbing their hands in glee, in preparation
Bollinger Squeeze
for a price break-out. This is the point,
where we can use this information to your
advantage and take some colossal winning
trades.
If we look at the charts below, we can see
that the bands squeezed together very
tight, and soon after we had a beautiful
price hike as high as Mount Everest. This
would have been a perfect opportunity to This is live trading session using
gain on multiple trades. Bollinger Bands with an 80% suc-
cess rate
The secret to success is to catch the move-
ment as early as possible. Above is a per-
fect set-up, which does not happen every
day, but if you spot these squeezes a cou-
ple of times per week you could be looking
at a very nice return.
42
Martingale Strategy – Is a Betting System
Martingale Strategy or Martingale Trading Strategy is a system

which originated in Roulette and Gambling. What is Martingale
Strategy? Is Martingale safe to use with trading? This and more in
our Martingale trading and strategy educational review for binary
options trading.
How did the Martingale Strategy origi- trades starting off at $5 and keeps up the
nate? trading pace at $5 until he loses. Once he
loses he doubles his trading stake. Accord-
Wikipedia describes the Martingale sys- ing to Keith Jones in this video you can
tem as A martingale is any of a class of make as much as $1 per minute trading his
betting strategies that originated from and strategy. According to Keith Jones a 70%
were popular in 18th century France. The payout is required for a 60 second trade,
simplest of these strategies was designed which should be taken according to market
for a game in which the gambler wins his sentiment. READ FURTHER – WE DISPROVE
stake if a coin comes up heads and loses IT WITH REAL LIFE TRADING!
it if the coin comes up tails. The strategy
had the gambler double his bet after every In principle if you start off with a $5 trade
loss, so that the first win would recover all with a minimum payout of 72 % you
previous losses plus win a profit equal to should be covering your losses simply by
the original stake. The martingale strategy doubling up your capital.
has been applied to roulette as well, as the
probability of hitting either red or black is
close to 50%.
Will the Martingale Strategy work for

Binary Options Trading?
Watch video Trade Rush 60 sec
In binary options trading the strategy with startegy $6757 in 1 week.
Martingale is also based on the probability
theory. Since the platforms of binary op-
tions trading provide a very simple way in In reality we have discovered that the per-
which to take trades, the same principle of centage of the payout needs to be higher
probability can be used. than 72%. This article about the Martingale
strategy in binary options is intended to
Technically, all you have to do is take a disprove the myths. In principle and on
trade in one direction, always betting on paper the Martingale strategy can earn you
the same direction. When a trade is lost, money trading online. However, one needs
you simply double up your trade stake and to have a large and ample capital, plus
take the trade in the same direction. nerves of steel in order to make any mon-
In the very popular video presentation ey from the Martingale Strategy.
by Keith Jones we are told that he tries a
variation of this strategy. Keith Jones takes
43
Here is an example of a trading exercise Trading History Using the Martingale
executed in the video below using the Strategy
Martingale Strategy with a 72% payout
Is the Risk Value worth the Effort when
Trade 1: $5 = LOST -$5 using the Martingale Strategy? Watch this
Trade 2: $10 = LOST – $10 video and decide whether you can stand
Trade 3: $20 = WON – Payout of $14.40 the pressure to trade using the Martingale
Strategy.
Net Loss is $0.60 cents Without any knowledge of binary options,
the martingale strategy is not profitable.
Take the scenario a little bit further and as- If you are a new trader, you will definitely
sume you also loose Trade 3 and you take need a good signal provider in order to
Trade 4 at $40. give you direction for your trades.
At 72% payout, this is how the situation

looks:
Trade 1: $5 = LOST -$5

Trade 2: $10 = LOST – $10
Trade 3: $20 = LOST – $20 – total loss so far
$35
Trade 4: $40 = WON – Payout of $28.80
Net Loss is $6.20
Therefore with a payout of 72% the Martin- Pros and Cons Using the Martingale
gale strategy of doubling your trade value Strategy
does not really work. You need at least a
90% payout in order to cover your losses. Here are the Cons of Trading Binary with
the Martingale strategy:
Alternatively as we did in our trading ses-
sion you will have to increase your trades • You will need to have nerves of steel to
to more than double in an exponential keep trading and to recover your losses
manner. • You will need to have a big capital be-
cause the speed at which you can burn
In this nerve wrecking session, we have your account is too fast and without the
traded live on our Tropical Trade platform buffer of a large capital you will not be
and managed to earn $55 in 20 minutes, able to recover your losses when using
but not before risking at trade of $600 to the Martingale strategy.
cover all previous losses. • If you try to use this strategy without
consulting an excellent signal software,
but rely only on the preferences shown
by your broker, the results can be cata-
strophic.
Watch this video showing how to

use martingale strategy in live trad- Here are the Pros that the Binary Op-
tion Sheriff can see using the Martingale
ing.
Strategy:
• If you have a good market analysis, or a

good signals indictor, which are based
on strategy, the Martingale Strategy
44
can be a good way to recovering losses.
Longer term trading in binary options
such as 30 minute trades actually pay
out close to 90%.
• Combining a good signal software,
or creating your own signals through
learning how to trade binary options,
you can achieve good results. Given
that most of the trades will be winner
trades from good strategy, doubling up
on a lost trade can recover your losses.
In this case only using the Martingale
Strategy can help you with seeing a pos-
itive growth on your capital.
Conclusion on Trading the Martingale

Strategy
Binary Options Martingale Strategy may be

risky. However with sufficient information
on how to take advantage of it in conjunc-
tion with good signal software systems, it
can really work. If you do not know what
you are doing, results can be disastrous.
As such it needs to be used very carefully
and only in favorable situations. If your
capital is small, trading binary options with
the Martingale Strategy should not be an
option.
45
NEWS 2017
Today’s Bitcoin Can Be Tomorrow’s Digital Gold
resorted to Bitcoin time and again in times
of crisis.
What Are the Advantages of Bitcoin?
Bitcoin has made a complete breakthrough

in the way by which money can be sent
via the internet. Bitcoin can be transferred
anywhere in the world in a quick and cheap
manner.
The recipient of the Bitcoin cryptocurrency
No one can predict the future. However, it can, in turn, pay anyone else in the same
seems that the technology companies that manner. The ease and flexibility by which
provide the block chain services could be Bitcoin can be transferred anywhere with-
heading to a bright evolvement. There are out the need of banks are what led it to be-
two more Bitcoin ETF applications in the come an attraction to online drug market.
pipeline and awaiting the verdict from the Those days are over, and today more and
SEC. These include the Grayscale Invest- more banks are “vaulting” the currency.
ments LLC’s Bitcoin Investment trust and It seems to follow that the future of the
SolidX Partners Inc. Bitcoin as a legit digital currency looks nice
Despite the fact that the recent Bitcoin ETF and bright.
application by Digital Assets Services of the This is not to say, that the security concerns
Winklevoss Twins was rejected, it appears surrounding Bitcoin are not validated. It
that the general direction is still heading to also means, however, that there are op-
a regulated bitcoin market. tions. The Winklevoss Twins have now a
There may be no time better than now to more concrete reason for which to contin-
look at the potential of earning with Bit- ue pushing for an ETF. Creating security,
coin. The recent Bitcoin ETF Rejection can regulation and insurance are the areas
only pave the way for more security and which will now have to be targeted. It is a
regulation. This can lead to the eventual question of how long. It is not a question
open market for the crypto-currency. To- of whether it will happen.
day’s image of Bitcoin is much improved
from the shady days of drug-dealing. Many
investors have bought into Bitcoin believing
this to be the digital gold of the future. In
countries where Banks cannot be trusted
and the credit card systems are not de-
veloped, Bitcoin has become the answer
to money transfers for regular online pur-
chases. Transfers can be made simply via
smartphones.
Today smart retailers in developed coun-
tries like Dell, Expedia, and Overstock are
accepting payment by Bitcoin. Further-
more, countries that have politic instability
such as Brazil, Venezuela, and Greece have
46
Elliot Wave Theory – Practical Tips
Elliot Wave Theory was discovered by Ralph Nelson Elliott of course.

And it is now so called after his namesake! Ralph Elliott analysed
stock data for over 75 years. He discovered that although the stock
market seemed to behave rather chaotic, it actually had a flow to it!
Who Was Ralph Nelson Elliot? Creator of the analogy is based on emotions, there
the Elliot Wave Theory was still a collective pattern.
When Ralph Elliot was 66 years old and

probably too tired to continue riding the
ebb and flow of the financial market, he
decided to share his studies with the trad-
ing world! At this ripe age he published his
studies in a book called “The Wave Princi-
ple”.
What is the Elliot Wave Theory?
The Wave Principle according to Elliott, is a

cycle in which the market generally trades.
According to Elliott the market traded in
waves. These waves are a result of repeti-
tive cycles. What is very interesting about
the Elliot logic, is that he took into consid-
eration that the market acted not just on
the technical analysis, but also took into
account the emotional perception of inves-
tors.
Basically Elliot watched the outside mar-

ket influences. He understood how the What Made Elliot Waves Attractive to In-
psychology of the mass investors reacted. vestors? The Elliot Wave Theory Review
Therefore, whereas so far we have always
based our analysis on how market reacts Well one of the most important factors,
on the technical side, he gave more im- is that with his “Wave Theory” Elliot could
portance to the “emotional” reactive of the justify and identify accurately and precisely
market. moments when the price would most likely
retract.
Elliot describes the upward and downward As we are well aware, trading is all about
swings that occur in pricing as “waves”. catching the “precise moment”. Elliot
They represent the mass psychology. But waves help us to come up with an accu-
far more interesting, is that even though rate system of catching the Tops and the
47
Bottoms of waves. In order to understand Wave Type 1: Impulse Waves and the Elliot
this system, a trader needs to understand Wave Theory
fractals!
We have established that one of the best
What are Fractals? How can they enhance markets to trade in would be a trending
Forex and Binary trading? market. The Elliot theory shows that in
a trending market we can observe a 5-3
According to Wikipedia: “ A fractal is a wave pattern.
natural phenomenon or a mathematical
set that exhibits a repeating pattern that The first 5 wave patterns are the Impulse
displays at every scale. It is also known as Waves or the general trend pattern.
expanding symmetry or evolving symme- The last 3 waves are the corrective waves
try. If the replication is exactly the same also known as the Pull-Back waves.
at every scale, it is called a self-similar In the pattern exhibited we can see that
pattern. An example of this is the Menger waves 1, 3, and 5 are what are motivating
Sponge.[1] Fractals can also be nearly the the trend and are therefore called “motive”
same at different levels. This latter pattern waves.
is illustrated in thesmall magnifications of
the Mandelbrot set.[2][3][4][5] Fractals also On the other hand waves 2 and 4 are the
include the idea of a detailed pattern that pull-back waves and are therefore called
repeats itself.[2]:166; 18[3][6]” the “corrective” waves.
So here on one had we have previously

been understand the genius of Fibonacci
and his numbers, and now we are faced
with another system that is based on Frac-
tals.
Fractals are basically “self-similarities” They

are really found all over nature. The per-
fect “nautilus shell” is a perfect fracture of
self-similar numbers, just as the snowflake
is!
Why would Fractals be important to

Trading?
The Elliot waves are based on the self-simi-

larity rule of fractals. From the graphic above which is the STG/
Elliot wave Theory is based on several USD chart for September 2016 we can
types of Waves. analyse the following:
Wave 1 The market here is making its first
48
impulse wave establishing a downtrend.
This is usually caused by a slow number of
traders who are testing the market. As we
can see, the market was previously on an
uptrend, and therefore
Wave 2 sees the Bulls trying to retrieve

their ground. The market pulls back with
wave 2, but it is not strong enough to keep
the market flowing back into an uptrend.
Wave 3 is usually the strongest of the

waves, and this proves that the trend is
now definitely set on a downtrend. The
public in general trading has its attention
on the trend and everyone is trying to ride
the wave! Corrective Wave Patterns – What are
They? – Elliot Wave Theory
The ensuing wave, which is Wave 4 is
considered to be the time when the “bears” Breath in!! According to Mr Elliot there are
in this case are cashing in on their profits. no less than 21 corrective Wave Patterns!
The price has already become quite expen- These range from simple to complex. So
sive, and therefore it is time to cash up. how on earth are we supposed to under-
Hence the retracement and the pull-back stand wave patterns?
or the “corrective wave”.
Zig-Zag Formations
The final wave is Wave 5 This is by far
one of the most difficult waves, and one For starters, these rules apply both in an
in which many traders get caught up and upward or a downward trending market.
make mistakes. This is usually driven by The first formations are called the Zig-Zag
TOO MUCH EMOTIONAL TRADING . The Formations. Zig Zag formations are steep!
market is driven by hysteria. In our pre- They seem to be going against the general
vious post about Market Trends, we have market trend. In a Zig-Zag formation, it is
identified, Sentiment Trading. The fifth likely that the first correction is not steep,
wave relates directly to sentiment trading. but the second correction would be a
much stronger wave.
If you see the photo of some hot shot CEO
of a major company, and you are following Zig-Zag formations are by far the most
their stock value, this is the time you could common of corrective patterns. Zig-zag are
cook up all the phantom reasons, why made up of two motive waves, 1 and 3 and
you should buy or sell. This is not the real one corrective which is 2.
evolvement of the market, but it is only
based on sentiment. It may act out for a Corrective Patterns and Flat Formations
while, but the likelihood is that you will be Flat formations are zig-zag patterns which
trading in a very nervous market. are equal in size and the price of an asset
keeps going sideways. This is especially
The chart below is a continuation of the true at the end of the fifth wave! Generally
earlier graphic and it shows how true the speaking the size of the previous wave will
Elliot Wave theory played out in this in- be equal to the next one.
stance.
The flat occurs when there is low momen-
tum. Meaning there is not much activity
in the market. It is made up of two 3-wave
49
zig-zags that keep correcting each other – If any of these rules do not follow, you may
therefore forming a sideway pattern, and be looking at the hazy waters after wave 5
price oscillation from A TO BE AND BACK and there is no trending market!
TO A!
Triangle Formations – In this case we

have the zig-zag patterns which are con-
verging into each other causing a funnel.
Alternatively they start as a funnel and
then open up into a cylindrical cone.
Triangles are corrective which are looking

like an ending diagonal. They can expand
and contract.
Elliot Wave Theory – What are Waves

within Waves?
We started of this lecture by explaining

that Elliot waves are fractals. Therefore
each wave is made of sub-waves. Like sins, cardinal rules should never be
As we have witnessed in the earlier pat- broken!!
terns we see that waves 1, 3, and 5 are
made up of smaller waves in 2 and 4. Al- A few other tips to keep in mind would
though waves 2 and 4 are corrective, they include that Wave 5 may not move beyond
are not strong enough to overcome the wave 3.
general trend. Wave 3 is always the strongest and most
accentuated.
But remember one strong Maxim about Waves 2 and 4 can be plotted with the Fi-
the Elliot Waves “ Pattern Repeats Itself” bonacci retracement levels and this would
In real life, waves are never shaped too be their bounce off platform!
perfectly. And sometimes it is very difficult
to give them proper labels. The more you
study charts and design patterns, the eas-
ier it becomes to identify the 5 wave Elliot
Pattern.
Does all this sound too complicated? Well

let us simplify this in three very important
cardinal rules.
Elliot Wave Theory

Three Cardinal Rules
• Wave 3 should NEVER be the shortest

impulse wave
• Wave 2 MUST NEVER go beyond the
start of Wave 1
• Wave 4 SHOULD NOT cross into the
same price area of wave 1.
50
Conclusion – How to Trade Binary and If you can understand this, and catch Wave
Forex Using the Elliot Wave Theory! 3 at its opening stage, then you are practi-
cally guaranteed to be looking at a success-
As we well know, picking cherries from the ful trade!
Top of the Tree, or harvesting the potatoes
when they are ripe from underground is
the key for our profits. Therefore when we Now here is a Quick Cheat List
look at the Elliot Waves, what we need to to help you summarize the Elliot
understand is the “Timing” of when to pick
Wave Theory
the next trade up or down! Let us have a
look again at the same chart, that we have
• We have seen that Elliot Wave Theory
been using all along in this argument.
is based on Fractals. Each wave is split
into parts which are similar copies of
If you have been closely following this
each other. Self-similarity waves.
lecture, you will understand perfectly well
• Trending market acts itself out in 5-3
that you will have had at least 2 or 3 op-
wave patterns.
portunities to profit in trading, by either
• The 1-3-5 wave pattern is called the
“Selling” in Forex or taking a “Put” option in
Impulse Wave.
Binary Options.
• The 2-4 pattern is called the Corrective
wave
Timing is a crucial phenomenon, but
• Although in theory there are 21 types
armed with great tools like the Elliot Wave
of corrective patterns the fundamental
Theory, it becomes a self-fullfilled prophe-
ones are zig-zag, flat and triangles
sy!
• There are three Cardinal Rules in the
Elliot Wave Theory
• Wave 3 should NEVER be the shortest
impulse wave
• Wave 2 MUST NEVER go beyond the
start of Wave 1
• Wave 4 SHOULD NOT cross into the
same price area of wave 1.
As a trader you will need to understand

that trading will never happen in exactly
the text book classic fashion. It is much
easier to understand historic information
that has already followed out, than to pre-
dict the future.
However, going back in history, and know-

ing that history repeats itself, is a sure way
of becoming more and more familiar with
Remember always the Cardinal Points of identifying the times when the Elliot Wave
the Elliot Wave Theory. You will need to Theory plays out, and use it for your trad-
find a situation that will play out. ing benefit in the future.
NEVER FORCE A TRADE!
The cardinal rules are very clear. Wave

2 should NEVER close below the start of
Wave 1 in a downtrend or vice verca.
And Waves 2 and 4 will frequently bounce
Watch video Martingale strategy - Risky
on the Fibonacci retracement lines.
Business. 20 minutes Trading $55 profit
51
Economic Calendar – How to use it and
profit Forex and Binary
The Forex Economic Calendar is a vital tool in your trading kit.
Learning how to use the Economic Calendar and monitor updates is
crucial to successful trading. In this article we will understand how
to use the Economic Calendar, evaluate events and check on the
impact of news announcements, and updates.
The Forex Economic Calendar – How to hand corner on the clock and this will in
use it. turn prompt you to choose the setting
of the clock to coincide with your trading
The Forex Economic Calendar is one of the charts and your trading platform. You will
most useful tools that you need to have on also in this case know the exact time when
your screen 24/7. It is useful whether you a news announcement is due in real time.
are trading Forex or Binary Options. It is of
particular use also when you are trading
using a signal software or an auto trader.
The news updates which are announced
throughout trading days, have a direct
effect on how currency pairs react, and can
dramatically alter results of trend trading.
There are a couple of different types of
economic calendars, but the information
The Currency Column of the Forex Eco-
they process is identical. Usually it is the
nomic Calendar
format which changes. Our favourite site
for checking the Economic Calendar is
The currency column refers to the main
forexfactory.com and below is a typical
currency which will be directly impacted
chart which portrays the Economic Calen-
by the news announcement. Since in Forex
dar.
as well as in Binary Options Trading, the
currency is always quoted against another
currency, the impact of the news will affect
the currency in question vis-à-vis any other
currencies quoted against it.
Currencies which are key influencers on

weaker currencies, may also affect the
volatility of the weaker currencies. As such
the behavior of a particular currency fol-
lowing a news announcement or even in
Time Zone Settings for the Economic anticipation of the news alert will have also
Calendar a direct or indirect impact on these curren-
cies. For example the Thai Bhat is a weak
It is of utmost importance to synchronise currency and the Thai government keeps it
the clock displaying the time of the news floating by having reserves in U.S Dollars.
event with your time zone settings. This Therefore if the U.S dollar weakens due to
can be done by clicking on the top right
52
adverse news, so will the Thai Bhat auto- The Actual Results Column
matically weaken.
This last column is the actual result from
the news announcements. In order to see
The Impact Column this result close to the time of announce-
ment you will need to refresh your brows-
This is probably the most important and er. The page from Forex Factory is static
key information that we need to be looking once you load it, and it will not update
at when checking the Economic Calendar. automatically.
The Yellow Icon signifies a low impact

event or news update. The Orange signi- How does the actual result affect the
fies a medium impact event, whereas the currency?
Red icon is the high impact event. This will
show most volatility on the currency in What any trader should bear in mind, is
question. The Events and News Announce- that the market does not respond to the
ments are what create volatility and de- data itself. Rather it responds to the actual
pending on your style of trading, these are result vis-à-vis the anticipated result. If the
the areas to watch out for and either avoid, result is matched or bettered, then this
or trade inside them. will affect the currency positively. But if for
some reason, the result is somewhat lower
than the expectations, it is considered a
The Middle column describes the Actual negative result (even if it will have seen an
Event that result in an Economic Up- increase over the previous data announce-
date. ment) In this case the price will be affected
negatively.
This column describes the type of data
being analysed and announced. If you click
on the detail button right across from the
Event column, you are immediately given
more information on what the event signi-
fies, how it will affect the currency and how
often it is released.
Trading the Forex Economic Calendar.

The Previous and Forecast columns.
Salient Points.
These columns provide information which
Since any news announcement has an ef-
is historical results from the previous an-
fect on the volatility of a currency, it is rec-
nouncement, whereas the forecast reflects
ommended that new traders should avoid
the expectations of the general sentiment.
areas where there is impending news up-
This would be based on data analysed by
dates. The price may fall or rise sharply in
economists.
anticipation of the news. Whether the actu-
al results match the anticipated results, will
also have another impact on the currency.
53
Volatility around the currency can start as
early as an hour prior to an economic up-
date, and will continue to be volatile until Conclusion: To Trade or Not to Trade
an hour after the release of economic data. during the Economic Calendar Updates.
This completely upsets a trending market,
and most signals and indicators will not Trading can be very exciting, but can also
work effectively anymore. The price of the be very risky. If you have any open po-
currency affected with an economic update sitions, which expire close to a news an-
usually finds its earlier equilibrium after nouncement, it may be wise to consider
an hour, and then it will be safe to trade a closing or hedging. Always control your risk
trending market again. by exercising the basic money manage-
ment rules. If you are new to trading we
The use of auto traders should be strictly recommend that you open an account with
avoided during areas of volatility. Although a Regulated Broker and receive a DEMO
auto traders can be very sophisticated, for ACCOUNT which will help you trade safely.
the most part, it is impossible for a Bot to We hope that this post and the related
read market sentiment. Auto traders are videos have gone some way to help you
excellent tools during a trending market, choose your trading style and to hold key
but can have negative results during pock- information which is essential to trading.
ets of sharp volatility. Don’t forget to subscribe to our site. Leave
a comment or send an email from the sub-
This video on the Economic Calendar runs scription form if you want us to help you
you through the Forex Factory site visually, with successful trading.
and therefore easy to follow the informa-
tion.
Sentimental Analysis. Trading Binary Op-

tions. 10 ITM TRADES of 11 Trades
Trading on The Economic Calendar up-

dates and using Sentiment Analysis
For seasoned traders, the volatility in the
market can also create an opportunity in-
stead of the doomsday prophecy come to
life. Although the currency which is being
impacted by the economic data becomes
volatile, there is still a pattern of behaviour
that can be followed to your advantage
and trade profitably.
The video below is a live trading session

during an economic calendar update. It
is important to note, that trading during
these periods exposes you to a higher risk
of loosing your capital.
54
Benefits of joining a social trading group
Social Trading is the best place to start for a Newbie or New Binary
Options Trader. If you are new to trading, Social Trading is the best
way to start your new education and the best way to learn how
to trade. In a Social Trading Group, a Newbie will expect to meet
like-minded individuals who are either new to trading, as well as
other members who have been trading successfully.
How Do I Join a Social Trading Group? How Does a Social Trading Group Work?
A Social Trading Group is a place where, New members are initially asked not to
day traders who are members to a closed post live comments during active trading
group, trade together on social media. sessions. They are however allowed to
Our group invites new members for free. fire any questions related to trading as a
The only pre-requisite is to choose a le- private message. The senior traders send
gitimate binary options broker which is out the signals. The live traders follow the
recommended from the list below, open signals and the logic behind the signals.
an account through the links and send us a Results are shared live. Later traders chat
copy of your funded account. about their trading results. The success
rate of our Social Trading Group is as high
There is no subscription fee to join the as 75-90% success rate of ITM or In The
Social Trading Group. All you will be re- Money Trades. As a new trader, you can
quired is to have a live trading account. expect to start making money online as
We will also help you open a FREE DEMO soon as your trial period on a demo ac-
ACCOUNT where you will be requested to count is over. Social trading is very much
trade on for the first couple of weeks until like entering an Elite Club as a new Mem-
you are comfortable making “paper mon- ber. It is daunting until a Newbie meets
ey”. This is a risk free trading style, which fellow Trading Members, and finds there
will help you learn trading without the fear is a hierarchy. At the Top of Social Trad-
or risk of losing your capital. If you are ing – sit the Administrators. Ranking below
trading in Europe we highly recommend are the Seasoned Traders who farm out a
that you chose a regulated broker in the lot of information. In the Lower rungs of
EuroZone. Social Trading are the New Traders. Bina-
ry Options Newbie Traders will find that
If you are trading in the United States we there is more to learn about the subject of
recommend that you trade with NADEX Option Trading without having to do it in
which is the only regulated broker in the the solitude of their home.Social Trading
United States and Canada. Anywhere else is belonging to a group where the Ad-
we are providing lists of recommended ministrators or Admins as they are better
and non scam brokers. known– Trade Live and in Real Time and
have a Trading Record of at least 7/10 In
The Money. Once you are admitted in a
group, traders copy Signals that the Ad-
mins send periodically. In excellent groups,
Signals are leaked in different time zones.
Admins are usually living in different parts
55
of the world. New Traders can catch the synched with a GMT Clock. You will see the
signals in any time frame irrespective of price going up and down. SR = Strike Rate.
their geographical position.
When the price falls below 1.1110, the
After a few weeks in Social Trading, Trad- trader takes a Call signal which expires at
ers develop a pattern with their favourite 11.00 a.m GMT time.
Admin. This may be either time zone relat-
ed, performance related or simply because
the interaction is better. Most Admins Terms like:
provide Live Webinars. Live Webinars in EOD = End of day
Social Trading are real time live trading. SR = Strike rate
The Admins select a Time Frame which is Call = Take an UP Signal
optimum for Trading. They then Trade Live Put = Take a Down Signal
whilst explaining their strategies and how
they are analysing charts and News Feed.
In Social Trading and Live Webinars, the If you wish to join the Group, we
Trader is given a full explanation on how can offer you an invitation by fol-
and why the Trade Signal is announced.
lowing the steps below.
What is a Social Trading Group for?
Making Money Online from Binary Options

Trading can be a challenge if you are a sol-
itary Trader. Having support from a Social
Trading Group is beneficial for mentoring Clear your cookies: If you are not sure how
and education, it is a support and an open to clear your cookies please clink on the
communication system where fears and link.
pitfalls may be discussed.
Select one the Recommended Broker
As a New Trader, or even a seasoned one list who are BinaryOptionSheriff.com
– when joining a new Manual Signal Group approved and who will provide you with
we recommend that you take Paper Trades DEMO account once you have funded your
or Trades in A Demo Account. The speed account.
with which a Trade is entered, the Strike
Price, will depend on how fast the Trader Fund your account with the minimum
reacts to the Signal. This may take time amount required. Most Brokers do not re-
and practice and only in a Demo Account quire more than $250 for a starting depos-
can a Trader fine tune entering at an opti- it. Remember not to deposit funds that you
mum Strike Price. cannot afford. Trade Demo first and don’t
use your capital.
Here is a typical Trading Signal
Contact our support on support[at]bina-
ryoptionsheriff.com with evidence that you
have funded your account.
Once this is done – we will get you an

invitation to join the Group. Remember to
What this signal means is that you look enlist on Facebook in order to be able to
for the EUR/USD Currency Pair. You go to join the Group.
your platform and make sure that you are
56
Copy Trading as a Means of Social Trad-
ing
Copy Trading is yet another great manner

to integrate in Social Trading and benefit
from Positive Signals and Trading in the
money. For Traders with no experience
joining a team of traders with proven suc-
cess track records is potentially of great
benefit in making money online. CopyOp
powered by AnyOption is a platform which
offers this ideal way of enjoying the ben-
efits of experienced traders. Full review
here.
A word of caution. Social Trading is a great [GOLD IRA - INVESTMENT GUIDE]

way to meet other traders and to discuss
strategies and successes and losses. How-
ever, it is of vital importance to choose a
good site for membership – one that has a
proven record of success rate. Groups that
have been positively reviewed. Remember
to always do your due diligence before
making rash decisions on Trading as it may
incur heavy losses.
57
Traders Manual
Practical Tips on what to

expect from your Binary
Options Broker.
This short manual will explain how to trade and your rights.
on a classic binary option platform and
what to expect once you process your reg- 4. Verify your account by sending the
istration. broker all the identification verifications
required. They are usually a confirmation
1. Registration. The registration pro- of your identity, by means of a passport,
cess will require a new trader to enter all identity card or driving license. You will
fields with the required information and need to verify your address with a utility
accept all legal terms and conditions. A bill. And finally if you are paying via credit
validation email follows and activation oc- card, you will need to produce a scanned
curs once a trader clicks on the activation copy of your card. Make sure that you
code which will be sent in the validation hide the first twelve digits and only leave
email. the last four. Never give credit card details
over the phone!
5. Types of Binary Option Instru-

ments. Most brokers offer three types of
financial options. These are the following:
High/Low - Binary Options are written with

target rates around the prevailing market
price. You can choose whether the mar-
ket price will close higher than the current
price or lower. These are considered the
classic. There expiry dates will range from
15 minutes to end of day or end of month.
A variation on the classic would be “Turbo”
or speed trading with expiry varying from
2. Initial Deposit. Clients are required 60 seconds all the way to 300 seconds.
to make an initial deposit of a minimum
amount. This varies from broker to broker,
but on average the value would be $250 or
the equivalent in the prevailing currency of
the trader.
3. Read the Terms and Conditions

properly to ensure that you are under-
standing all your obligations as a trader,
58
the Trade is usually showing as a “Grey” or
One Touch – Touch and No Touch Binary “Blue”or similar colour – again depending
options are options where you will decide on the broker.
if the market price will reach a certain
amount or not before the expiry time.
In/Out Boundary – In and Out Boundary

options have both an upper and a lower
target price that form the boundary range.
These instruments’ outcome depends on
where the market price is at the option’s 9. History. Your history chart will
expiry compared to the boundary range. show you your recent trades. Typically this
can go as far back as a month of trading.
6. The option return is a percentage The broker can be contacted for historical
of the trade invested. If the trade ex- trades in the further past, if this is re-
pires In the Money or ITM as it is known quired.
you will get a percentage of your invested
amount. Therefore if you invest $100 and
your percentage return is 80% you will re-
ceive $80 profit. The capital and profit val-
ue $180 will be returned to your account
balance.
Associated option is IN THE MONEY

10. Deposits. When you click on the
Associated option is AT THE MONEY Banking tab from the home page, the web-
Associated option is OUT OF THE MONEY site will then open the deposit screen. You
will need to select a deposit method. All
deposits made should be acknowledged by
A Trade which ends Out of the Money or the broker.
OTM typically does not offer a refund.
11. Withdrawals. You can make with-
A Trade which ends At the Money or ATM drawals from your trading account by
will give you back your full investment. choosing the Banking tab from the home
ATM happens when your strike rate and page. When you hit the withdrawal tab,
your closing rate are the same. you then enter the desired withdrawal
amount. A trader should note that almost
7. The Option List. The option list generally always, all brokers will pay a with-
is the list of assets that can be traded in drawal into the same method of payment,
binary options. Typically a broker will offer which the trader will have originally paid
“Market Assets” which are stocks, forex and into the account. The withdrawal process
commodities. The market assets vary from usually takes around 3-5 days to complete
broker to broker but typically good brokers depending on the broker.
will offer around 200 assets for trading.
12. International Support. Legitimate
8. My “Open Trades” All brokers brokers will list a number of support lines
will show your open trades which are still where they can be contacted and give de-
waiting for expiry. Typically a red trade tails of their registered office.
shows that a trading is heading Out of the
Money, and a Green Trade shows that the
trade is heading In the Money. When the
target price and strike price are the same Images taken from 24option.com
59
What Are Moving Averages – How Can
They Help Us With Trading?
A moving average is an average of the price between one time
frame and another, smoothened out over time. By taking the aver-
age closing price of a currency pair, over a number of periods, you
will be finding out the “moving average”. By a period we mean the
time frame of each candlestick.
How To Calculate a Simple Moving Aver-

age (SMA)
Let us suppose we are looking at a 1-hour

chart. If we are looking at a 10 period sim-
ple moving average, all we have to do, is
find the closing price of each candlestick,
for the last 10 candlesticks. Add the price
together and then divide by 10. If we are
looking at plotting a 10 period simple mov-
ing average on a half hour, chart, we find
the closing price of the last 10 candlesticks,
add it up and divide by 10. Same principle
would be true, if you are looking plotting
a 30 period simple moving average. On a
1-hour chart, you pick the closing price of
the last 30 candlesticks, add together and
then divide by 30. The resulting price is
average price.
If you are actually hand plotting the lines,

you will find the price average of the pre-
vious 30 candlesticks and plot the average
price on your chart. By linking the two pric-
es, you get your moving average. Luckily
today, all charting stations will give you the
option to plot using their tools, so there is
no need to calculate anything by hand. But
this is the principle in general. If you plot
very short time frames like 5 candlestick
period, you are going to have a chart which
is a lot less smooth than one which is a 30
period time frame.
Watch this video explaining what mov-

ing averages are.
60
above the trend line. If you are not aware
Exponential Moving Average (EMA) that there is a news update, you may think
that this is an indication of a price change.
As the name indicates for SMA – the price But in fact, what this is actually is a “fake
configuration is “Simple” therefore price out”. After a short while, the price settles
action can be determined by simple arith- back to the slippery road of downhill.Get-
metic. However, SMA’S can give rise to ting faked out is not fun. It is easy to get
many spikes and zig-zags, which could caught in the cross-fire. So how can this
affect our judgment in the way we use problem be avoided, or at least decreased?
them. For example, if there is a spike due
to a news release, than you may be seeing
the price movement as a serrated tool.
EMA’s or Exponential Moving Averages,
give more weighting to the recent periods.
The price is loaded heavier to the recent
days, than the SMA. As such spikes, which
could be very sharp with the SMA’s are
now smoothened out by the EMA’S. As
such the price represented by the EMA’s
are more accurately represented in recent
price action. It is a smoother line. EMA’s
give more emphasis on the recent turn of
events. This is important, because when
you are trading, it is much more important
to see what is happening NOW rather than
One of the best solutions is to plot differ-
just look at the past.
ent time frames. Let us have a look at the
same scenario but this time with 10 and 20
SMA’S. Naturally, the shorter time frame
One of the very good value of a simple
is much more reactive than the longer
moving average is finding a trend. In an
time frames. As such you will find that the
uptrend you can see that the price action
20-period SMA is a much smoother line
tends to happen above the moving aver-
than the 10-period SMA. Naturally you can
age line plotted on the chart. Alternatively,
add even more slow averages by putting a
when the price action is happening below
30 or 60-period SMA. What has to be borne
the moving average line plotted on the
in mind is that the lines should be placed
chart, we are generally speaking looking
in order. Ideally use different colours to
at a downtrend. This is all fair and square.
identify them. The movement is fastest to
However the problem with looking at just
slowest in an uptrend, and slowest to fast-
one time frame, is that it is too simple.
est in a downtrend.
As the name implies, with simple moving
averages, they react according to price
movements, within their time frame. But
they are latent.
Let us imagine a situation, where we are

looking and the EUR/USD. The price is gen-
erally on a downtrend, however, at noon
there is a high impact news, which makes
the Euro surge up against the Dollar. This
is against the general trend, and is proba-
bly very temporary. If you can see how this
affects the price of the moving average,
you see that the average line is now cutting
61
Moving Average Cross Overs – Time to
Trade
Moving averages are an excellent tool in

fundamental analysis, to help you deter-
mine, when you are going to pick a trend
change. The Cross-Over between different
period SMA’S is a very significant signal. If
moving averages cross over one another, it
usually means that a trend is about to end,
and this could be a perfect chance to take
a trade in the opposite direction. Although,
this is not a system which is infallible – the
“cross-over” of different period SMA’s is
a very strong indicator. Use this together
with other indicators for price confirma-
tion and you should be making some very
positive trades. As with other indicators,
the SMA’s work best in a trending or even
volatile market. However, they are pret-
ty useless in a ranging market. What will
happen in a trending market, is that you
will get plenty of cross-overs which do not
mean anything much.
As with standard support and resistance,

you will always get a few bars, which can
dip into the support and resistance. Sadly
there is no such thing as a perfect indica-
tor. Again, using more than one SMA-peri-
od will provide a better picture in order to
assess strategies.
Conclusion for Using Moving Averages
Moving Averages are a way in which price

Using Moving Averages as Support and action can be smoothened out. Although
Resistance Levels there are different types of moving averag-
es, the Simple and the Exponential are the
Moving Averages can act as dynamic sup- most commonly used.
port and resistance lines. It is dynamic, Exponential or EMA’s place more weighting
because it is not the typical “top” and “bot- to recent price movement.
tom” lines that we have learnt to plot for Simple Moving Averages or SMA’s give a
the support and resistance. If we look at faithful rendition of price movement, but
the chart below, we can see how the price are susceptible to spiking.
bounced off the EMA (exponential moving Exponential averages can help you spot
average) on different occasions until the a trend faster, but it is also prone to fake
support turned into resistance. outs.
62
Spot Trends
Used them as an Indicator when they

“Cross Over”
Used as Dynamic support and resistance
levels.
Traders ought to experiment with differ-
ent time frames and see what results each
time frame gives them, in order to deter-
mine trading styles.
Tip of the Day: Always Consult with the

Economic Calendar before trading to
make sure that you do not fall into finan-
cial trouble, trading during high volatility.
Consider getting a FREE DEMO ACCOUNT
to do practice trading – it’s easy to open,
you just need to have email address and
you will be granted 1000$ in your account
as “fake money” so you can test your strat-
egy.
63
Binary Vs Forex – Investing and Earning
Online
Binary vs Forex – which is the better solution for online trading?
Are you looking at making money online trading? We highly recom-
mend that you read this extensive review on the different options
available for investors for online earnings. Binary vs Forex is an
impartial post, being written for the sole purpose of explaining the
similarities and difference between Binary vs Forex and to provide
Binary vs Forex – Make Money Trading rency pair or the asset will be heading “UP”
Online or “DOWN” within a chosen time frame. All
the trader has to decide, is direction and
Whether you are a new trader, or even a hit the “execute” button.
seasoned one, finding the best option for
investing your spare cash and generating However, this is not the whole truth! The
an income online is not an easy choice. reality of binary options trading is some-
Binary Options trading is made to look what different. When trading binary op-
like it is super-simple, yet when traders try tions, you are not trading on the open
their luck, they end up using the platforms market. You are in effectiveness trading
like slot machines. Many new traders end against other traders on the broker’s
up gambling off their investment, instead platform. The broker needs to balance
of trading properly. off between “players” on their platform.
They will net the difference between the
On the other hand, Forex is presented as pay-out and the original investment. If for
super-complicated, when in fact, if the ba- some reason however, all the “players” are
sics are followed, it is easily mastered. choosing on the same side, the Broker is
Nowadays, Forex trading platforms are the net loser.
being designed in such an intuitive man-
ner, that even new traders can learn to For this reason, it is of great importance
navigate quickly. The crux of the matter is that you pick a legitimate broker when
only one! trading binary options. A broker who is
Can you make money online trading Binary properly funded, and can afford to be the
vs Forex trading? net payer, in case many traders win on the
same side.
Trading Binary vs Forex Trading – Which
is The Better Option? Of particular importance it is essential that
you invest your initial capital with a Broker
The first and very obvious downside to the that is properly licensed and regulated in
“easy to trade on” binary options, is that your geographical area.
there are plenty of scam brokers.
Therefore identifying how to avoid binary Guidelines to Safe Investment in Binary
option scam brokers, and scam auto trad- Options
ers, is your first key answer.
In case you are new to trading, you should If trading in the United States – you should
read our post of “What are binary options”. only trade with NADEX – this is the only
In a nutshell, binary option trading, is pick- Binary Options Broker that is licensed by
ing a trade and deciding whether the cur- the CFTC to solicit U.S trading in Binary
64
Options. In case you are trading in other Forex is really complicated, that is another
countries, particularly Europe, you should question. Forex is based on leveraging.
definitely have a look at 24 Option. 24 What is Leverage in Forex?
Option are licensed by CYSEC and have an Here is an explanation a brief and visual-
impeccable reputation for pay-outs. Read ized explanation of leverage in Forex.
the full 24 Option Review HERE
Learn how to trade binary options by
opening a FREE DEMO ACCOUNT with IQ
Options. IQ options offer a no commitment
free demo account, which is funded with
“virtual money” and is therefore absolutely
useful to a new trader. It is the only risk
free way by which to trade and learn. Read
the full review on IQ option HERE
Bottom line, stay safe and trade only with
the highest quality brokers. Small and Another downside to Forex is that you
non-regularised brokers, although not al- either learn how to place your “stop loss”
ways the case, can go broke. They may not and “take profit” or else you are stuck in
pay you, if they happen to have a major front of a computer, monitoring the move-
player winning against them. They just go ments of your trades!
broke.
Here is how to easily solve this matter,
especially if you are a new trader. We rec-
Trading Strategy – Binary vs Forex – Is it ommend that you visit the eToro platform.
Really Complicated? eToro is probably the world’s leading social
trading platform. eToro have devised a us-
We will now quickly evaluate Forex Trading. er-friendly platform, where you can either
Forex trading, is trading the currency mar- trade solo, or better still discuss with other
kets. Today, most broker will offer also a traders before placing your “order”.
wide range of other assets, which includes With over 5 million traders subscribed to
commodities, shares and other financial eToro, you are networking with like plen-
instruments. ty of like-minded traders, who are either
In this review of the Binary vs Forex for and seeking or giving advice. Best of all, eToro
against strategy, we will however also show has two important features which are
you the differences between trading binary
and trading forex. Copy Trader – you can select the best per-
Whereas in binary options you are trading forming traders and have part of your cap-
against the broker, which is also called “in- ital allocated to automatically copy trades
house” trading, in Forex you are trading in of professionals.
the open market.
In Binary you are “betting” in the eventual- Copy Funds – this is a very new feature,
ity of the currency pair going in the direc- whereby traders can copy entire funds in-
tion you pick. Whilst in the case of Forex, stead of a single asset. So one single trade
you are choosing the direction that the will be weighted against the net result of
currency pair will go, in the open market. an entire portfolio.
In case your direction is correct, you will
make “pips” or “profits measured in frac- You are given a demo account for $100,000
tions” depending on how far the direction with unlimited usage the minute you join
goes in your favour. eToro. Minimum investment is as low as
The broker only provides you with the plat- $50
form you trade on, and makes several pips
of profit off your trading. If you are a new trader, eToro is the best
As to the question of whether trading choice for trading forex. It is not just us-
65
er-friendly and offers automatic trading
options, but it is fully regulated by CySec.
Read the full eToro review HERE
So how does Forex trading vary from

Binary Options?
If you are dealing with the right brokers,

there is not much difference. The prin-
ciples of trading are the same for both
binary options and forex. Bottom line,
you need to learn how to trade. You must
understand the basics like “Fundamental
Analysis” “Technical Analysis” and “Senti-
ment Analysis” Picking the right entry price,
is the most important basics of successful
trading.
In a nutshell if you are choosing between

Binary vs Forex, what you need to bear in
mind is the following points:
Pick the Right Broker and AVOID SCAMS!
There is no real substitute to working hard.

Understanding how to use the best trading
strategy requires skill. Invest in your own
Education, and you are already on the best
road to success.
Can I Make Money Trading Online?
Undoubtedly the answer is YES! Trading

remains one of the most legitimate and
easy ways by which to make money online.
When we say “easy” we mean that every-
one can do it. However, it is subject to the
provisos explained above. You must also
consider your “money management” be-
fore trading. Never trade what you cannot
afford to lose. You may potentially gain a
lot with trading. You are equally exposed
to potentially losing your capital. This is
especially true if you trade without the cor-
rect tools! And remember the advantages
of joining a Social Trading Group – where
you will meet traders who have the same
issues and questions on trading strategy
and investment as yourself.
66
Congratulations!
You have just finished big junk of educa-
tion !!!
Now you know the basics plus some tips
and tricks about binary options/forex trading.
We hope this material will help you make bet-
ter decisions when placing trades. If you’ve
liked this ebook and want to continue trading
education subscribe to Sheriff University for
free lectures, strategies and live trading ses-
sions. We’d like to hear from you.
COUNT ME IN !
Stay tuned and subcribe Sheriff’s You Tube channel

to get access to live trading sessions and software
reviews.
67

2017 The Secret Trader Ebook

Uploaded by

2017 The Secret Trader Ebook

Uploaded by

The 2017

Lectures from beginner to ad-

Instructions how to trade

Binary Option Sheriff

How do we define a successful trader? In order to qualify as a superstar trader you

a. Execute Clever Trades

Copying of this material is forbidden. Copyrights: Binary Option Sheriff 2017

Free live trading videos and strategies

Take advantage of getting access to free live tarding material

To get access to all existing and upcoming lectures simply

PART III ADVANCED

If you are watching this currency pair and

For Binary Options you will win or lose

Let us assume that you will continue play-

Because the binary market is so enormous,

Trade Binary Options with Low Deposits

The minimum deposit required to set you

Trade Binary Options on a Free Demo

Learning trading can be painless when

What is a Trading Strategy?

Money Management. A Trade should never

Here we see a 30 Minute Chart. Every red

When to trade binary options ? Trading sessions that keep

Three Types of Forex and Binary Market

Let us be clear. There is no hard and fast

Forex Market Analysis – Technical Anal-

Naturally the more traders that there are

Forex Market Analysis – Technical Anal-

We cannot exclude the fact that technical

The valuable information set with technical

Note that this article is being written on

A Trending Market is one where the price of a currency pair, an asset,

Trending Market Downtrend and strong movements in one direction

Charts on exhibit are courtesy of NetDania.

Trends also have what are known as the

How can a Trader benefit from a Trend-

Apart from watching the charts like a hawk

Remember also to check the Economic

We hope that this post has helped you with

How to Plot Support and Resistance Lev-

The first thing to bear in mind is that sup-

How can we ascertain that support and

We need to assume that we are working in

Support and Resistance Levels –

If the price “Goes through the Roof” what

If the price hits and bounces back from

Cardinal Rule 1: How much to Invest.

Never invest that what you cannot afford to

Cardinal Rule 2: Set Your Targets.

Targets are excellent guidelines to keep our

Cardinal Rule 4: Be Disciplined. Cardinal Rule 6: Separate your Emo-

Follow these very basic rules for trading,

Cardinal Rule 8 – Learn when enough

This Rule is the x-ray image of Rule 7. On a

Cardinal Rule 9 – Learn your basics

Learn how to read basic charting. Know

Let us understand what charts are by Pin Bar Trading Charts

Line Trading Charts Example if we are looking at a five minute

Candlestick Trading Charts

The Candlestick Trading Chart is showing

Visually, candlestick trading charts are very

In order to be a successfull trader you need to

What are Japanese candlesticks ?

Japanese candlesticks can be used to show

In Japanese Candlesticks Long Upper Shad-

If you’re interested to dive deeper go to

In this second part of understanding basic Japanese candlesticks

Marubozu A Red Marubozu shows us that the entry

Basic Japanese candlesticks have a variety

A Blue Marubozu shows us that the entry

The real body of the candlestick, whether it

Hanging Man and Hammer

In basic Japanese candlesticks the Hanging

The hanging man is a reversal from an up-

The lower long shadow indicates that the

Basic Japanese Candlesticks Conclusion