The purpose of use
The binary options live chart always works online at any Internet browser and is used to get the most relevant information on the current prices of the market assets. Why are the live charts so valuable? In fact, some of binary options brokers’ platforms are able to transmit the same information with a delay of 2-3 seconds. Undoubtedly, there are brokers, whose platforms are the absolute antithesis of live charts, but this is true only if the broker is the most reliable one and has all relevant licenses and regulation to receive quotes directly from the liquidity provider.
Therefore, the most obvious advantages of live charts are the following:
independence from any particular broker,
no slips and hangs,
An idea that different brokers have different indicators is common among traders, especially beginners. More experienced traders understand the true causes of such situations, therefore, trading on the broker’s platform they always use the live charts data for verification.
Charts are easy to customize. For example, if you trade short-term options, you can set timeframes from one to fifteen minutes. Those who trade options with expiration at the end of the day, can choose the period of fifteen minutes to four hours, and so on.
Binary options live charts have quite rich functionality. Any strategies and indicators may be applied to live charts, as well as writing notes in the margins. Thanks to all these qualities, as well as the exceptional reliability, live chart is a vital tool in margin trading.
Working with live chart
1. Selecting the Asset
Initially, a trader needs to choose an asset for the upcoming auction. The most popular asset is EUR/USD currency pair. Usually it is used on a currency pairs live chart by default. When selecting an asset it is recommended to pay attention at trend movement and development. For example, if we were seeing the live chart trend EUR/JPY is going up over the last 5 or 10 minutes, we may open a short-term CALL option.
2. Selecting the Live Chart Type
The most popular and easiest-to-read types of online binary options live chart are:
Candles. They allow you to see the trend without random peaks. Candle is based on the cost of opening and closing deals. There are also other types of live charts display.
Bars. Bars is the second live chart which, nevertheless, considered to be less effective than candles.
Lines. The trend movement on the chart is displayed as a normal line. The use of line chart may be useful for evaluating the current trends, but for trading it is best to go back to candles.
Renko (slow motion) is a Japanese design that does not take into account the timeframes and volumes of trading, so not all indicators for Renko charts are effective. Indicators working with volume determination will not work on the Renko charts. Indicators that assess the comparatives min and max levels or the opening price and closing price, will not work correctly. Every new Renko brick is just to the right of the last one to the previously agreed price level, and is higher when the price asset grows, or lower, if the price falls. The dark rectangle on the Renko chart represents the price drop, the transparent – its growth. Renko charts on a large scale gives usually a lot of false triggering, therefore, you should build them on the basis of ticking signals.
3. Choosing the Timeframe.
Depending on the contract expiry time, by analogy with the MT4 terminal, a live charts allow you to choose from a large number of timeframes (time intervals), which are indicated on the graph as candles (bars). The timeframe may be standard – from 1 minute to 1 month. One candle on the chart is equal to your selected timeframe.
4. Selecting the Strategy
The last and most significant step when working with live chart is the choice of a trading strategy. You can easily find a list of ready-made working strategies in our other article, dedicated directly to the binary options trading strategies. Any chosen strategy involves the use of various technical indicators. As a rule, a live chart already contains in settings a large list of indicators that one may be easily “tie” to the trend of selected asset. The most popular indicators for the binary options live charts that determine the effectiveness of the chosen strategy are the Bollinger Bands, Moving Average and Price Oscillator. There is also a tick indicator, which applies only to the tick chart.
The difference between a live tick chart and the standard chart
Tick chart gives the trader the ability to see single quotes change. This chart is perfect for traders who prefer short-term binary contracts. Tick charts are used most efficiently in order to estimate the high volatility assets.
The main disadvantage of tick chart is that frequent quotes update prevents many brokers to store large amounts of information, which significantly narrows the criterion of the trend motion estimation in the long run.
Live chart: Conclusion
Using binary options live chart is a necessary condition for every trader who wants to get a steady high income from trading. Live chart is ideal for technical analysis. It displays only the latest quotes asset prices online, eliminating any broker’s omissions and allows you to be always aware of the real market situation.