Trading binary options using the ZUP indicator

Below is a valid long term trade at time of publication. For more information on the ZUP indicator go to my blog HOW TO TRADE THE ZUP INDICATOR

4 hour signal on AUDUSD long. I go through the details of setting up a trade on my other blog. Check it out and you might learn a valuable lesson about support and resistance.

Learn how to read a price chart

Analysis Tips:

How to trade Binary Options

1) When viewing the price charts start with the higher time frame and work your way down to the time frame you are trading. Always look at the big picture even when trading one minute charts.

2) Draw SUPPORT and RESISTANCE lines on the chart that are near to the price point you are trading. These lines are drawn where the price has reversed direction in the past.

3) Draw TREND lines to show trends in all time frames or at least a few time frames.

Binary options are easy to trade but not easy to win

Binary Options are based on an underlying security, commodity, or currency that have various strike prices to choose from as well as various expirations. Both call and put Binary Options are available for trading. If, at expiration, the price of the underlying security closes at or above the selected strike price, the buyer of a call Binary Option receives the payoff. If the underlying security closes at a price that is below the strike price on the expiration date, the buyer receives nothing.

In the case of put Binary Options, the put buyer receives the payoff per contract if the underlying security closes below the strike price at expiration, and nothing if the underlying security closes at or above the strike price at expiration.

The price of a Binary Option usually reflects the perceived probability that the underlying security price will reach or exceed (for call Binary Options) or fail to reach or exceed (for put Binary Options) the selected strike price at expiration. The cost of Binary Options will normally be quoted at a price per contract. The trader can buy multiple contracts. Buyers of Binary Options pay for the contract at the time of purchase. Binary Options are easy to trade but not easy to win.

How to trade binary options

1 Binary Options Trading

Binary options are the latest addition to the asset trading game. The assets include stocks, futures, and forex. The trading process is simple but the process of trading is not.

Many Binary Options traders approach it as a gambling venture. That's OK if that is your goal. You will have a 50/50 chance of winning 80%. As far as I'm concerned, those odds stink. You will lose all of your money.

A little education goes a long way, notably with binary options, since the results are quick to come. You can get rich or poor very quickly. If you must guess, at least take an educated guess.

Before you trade, at least take the time to understand the game. The markets in general are subject to time tested laws, similar to the law of gravity. What goes up...must come down. OK, it's a little more complicated than that, but simple rules indicate much of binary option market movement.

Please take the time to learn and understand the simple concepts on this page. Binary option trading is the most simple form of trading market price action. If you learn about support, resistance and trends you will be way ahead of the pack. The best binary options systems and binary options signals are based on price action.