Binary options crude oil

Binary options crude oil

The best way to approach crude oil binary option trading is to rely on fundamental analysis and use technical analysis to determine the best entry and exit points for your trade. Here are some of the main factors you should be on the lookout for: Weekly US crude oil inventories report, due at . /08/09 · About Crude Oil. Crude oil is one of the commodity assets in the binary options market. On any binary options platform that offers commodities, crude oil is one of the big three (the other two being gold and silver). The reason is not far-fetched. The world relies heavily on crude. Wars have been fought on crude oil and without crude oil, the world as we know it will be very different indeed. Combining the news and the double bottom formation, a discerning trader would know that the only way crude oil was going was northwards. This sets up the following binary option plays: 1) Touch option with an upside barrier above the neckline level of $ 2) No Touch option with a downside barrier below the double bottoms at $

Commodity Binary Options

This article is sponsored by OptionBit which is our recommended broker for trading oil with binary options. It is true that this is a binary options trading blog, but the truth is that the principles we shall talk about cover all assets traded in the binary options market, binary options crude oil. So we will select an instrument that is traded on the binary options platforms of many brokers to illustrate a typical trade strategy, and that asset is crude oil.

Many traders are familiar with trading currencies, but very few trade crude oil. As such, they are in a position where they are leaving a lot of money on the table. This is supported by the fact that the same technical analysis principles used in forex analysis are virtually the same principles used in technical analysis of any other instrument, binary options crude oil.

What is good for the goose definitely has to be good for the gander as well. Let us examin a binary options trading strategy that will employ the use of the Fibonacci retracement tool, this time not as a strict retracement tool but as a tool that can be used for range trading. Look at this daily chart for crude oil CLJ1. This kind of trade is a dicey one, because the fundamentals that were pushing crude prices were ones that could not be predicted.

This was a binary options crude oil situation. Any shift in the dynamics of the war would immediately cause a shift in the behaviour of the underlying asset.

This was what was playing out here. Prices were rising as no one knew how long the war would last. As battles for the Libyan cities raged and towns were taken, lost and re-taken by the opposing fighters, prices were doing a dance. In this sort of scenario, it is extremely important to pay attention not just to the fundamentals, but to the technicals as well.

You may have heard the saying: trigger fundamentally, enter technically, binary options crude oil. What this saying means is that the triggers for direction are the fundamentals the newswhile technical plays enable the trader to make the correct entry in the direction of the fundamental trigger. As it became obvious that the war was going to last for sometime as talks and mediatory efforts broke down, traders settled in for a long ride upwards. But this is where the technicals came to play.

In the chart below, we see a double bottom forming at the commencement of the civil war, giving crude a bullish jumpstart. Combining the news and the double bottom formation, a discerning trader would know that the only way crude oil was going was northwards, binary options crude oil. This sets up the following binary option plays:, binary options crude oil.

For those who missed the play on scenario 1, the next play would be to wait for the binary options crude oil that would surely occur as traders took profits. Plotting the Fibonacci retracement tool from the swing low to swing high, we see this at the Of the two green circles, the second one is the most significant.

This is because the first indicates the point of maximum retracement, which forms a key support. It tells the trader that any other retracements would probably test that support level as well. This sets binary options crude oil the following trades:. The other binary trade types would be too risky to trade in this situation so we leave them out. Hope this short strategy lesson is well understood. We used this for crude.

You can use it for any asset in the binary options market. Trading Oil on Binary Options Platforms This article is sponsored by OptionBit which is our recommended broker for trading oil with binary options. Scenario 1 In the chart below, we see a double bottom forming at the commencement of the civil war, giving crude a bullish jumpstart.

Scenario 2 For those who missed the play on scenario 1, the next play would be to wait for the retracement that would surely occur as traders took profits.

Why I Lost This Crude Oil Trade - Nadex Binary Options Trading Strategies

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Trading Crude Oil Using Binary Options

The best way to approach crude oil binary option trading is to rely on fundamental analysis and use technical analysis to determine the best entry and exit points for your trade. Here are some of the main factors you should be on the lookout for: Weekly US crude oil inventories report, due at . Crude oil is not as important as the precious metals gold and silver when it comes to alternative investment products. However, oil is a very limited resource as well and therefore has an edge on stocks and bonds in times of crises. You can find more information on gold, silver and oil binary options here: Gold Binary Options; Silver Binary Options. There are basically two kinds of Bitcoin binary options brokers: Type 1 The crude oil trading binary options Singapore ones that use Bitcoin as the sole medium of exchange, and Type 2 those that use Bitcoin as the underlying asset.