Support and Resistance Binary Options

The concepts of support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis and they are often regarded as a subject that is complex by those who are just learning to trade binary options. Trading rejections or bounces from these lines are one of the most basic yet powerful ways to trade.

Support and Resistance lines are used as horizontal lines to indicate a area or zone where price previously struggled to break threw. We also get vertical support and resistance lines as explained in the Channel Bounce Trading Strategy.

Support and Resistance Binary Options

Drawing and recognizing thee areas should not be as complicated as most make it out to be. I am sure you have seen charts with literally lines running all over the chart making the chart look messy and almost unreadable. In fact only 2 lines have to be drawn at any single given time presenting a clean chart.

In binary options trading we only need a support and resistance line on either side of the current price. Until price breaks that level do we only draw in a new line and remove the current line. If price broke resistance we remove previous support line as the resistance now acts as support and we only draw in a new relevant resistance line. So support can turn into resistance and resistance into support once it is broken leaning us with only 2 lines every time.

Final Word

Please note that these lines should be seen as a area or zone and not as a exact line where price will turn. Always wait for the candle to close to confirm price has been rejected or continued threw. If you use these levels accordingly it will help you gain a edge in the binary options market!