Range (Between)
Range (Between)
The Range (Between) is a popular trading concept in Binary Options Trading that focuses on predicting whether an asset’s price will remain within a specific range during a given timeframe. This article covers the fundamentals of range trading with IQ Option and Pocket Option, explains how to use the concept in binary options trading, and offers a step-by-step guide for beginners.
Introduction
In binary options trading, recognizing and trading within a range is a skill that can enhance strategic opportunities. The range trading strategy works by identifying the high and low price points of an asset and placing trades accordingly. For beginners, understanding the concept of the "Range (Between)" is essential to make informed decisions and reduce risk while trading.
What is Range (Between) in Binary Options Trading?
Range (Between) refers to the period during which an asset's price fluctuates between a defined upper and lower boundary. Traders exploit this behavior by predicting that the price will remain between these limits for the duration of the trade. This strategy is useful in markets where prices consolidate instead of trending dramatically.
Key related topics include:
How Does Range Trading Work?
Range trading requires you to:
- Identify resistance and support levels.
- Predict that the asset's price will not breach these levels during the chosen timeframe.
- Select a binary option type that benefits from stagnant price movement.
For example, when trading on IQ Option or Pocket Option, you can choose an "In/Out" option to capitalize on price stability within a defined range.
Practical Examples
Practical examples help elucidate the strategy:
1. IQ Option example: Suppose you observe that the price of Gold consistently oscillates between $1,800 and $1,820 during a 30-minute interval. You place an "In" option expecting the price to remain within this range until the expiration time. Register at IQ Option
2. Pocket Option example: Consider the EUR/USD currency pair, which fluctuates between 1.1000 and 1.1020. You set up a range-based binary option trade with the expectation that the pair's price remains within these boundaries. Open an account at Pocket Option
Tools and Tables for Range Trading Analysis
The following table outlines some of the key elements used when trading the range between resistance and support levels:
| Element | Description |
|---|---|
| Resistance Level | The upper boundary indicating where selling pressure may increase. |
| Support Level | The lower boundary indicating where buying pressure may increase. |
| Collateral Indicators | Tools such as Bollinger Bands or Relative Strength Index (RSI) that affirm the range boundaries. |
| Expiry Time | The duration selected for the binary option, typically matching the range observation period. |
Step-by-Step Guide for Beginners
For those new to the range (between) concept, follow these steps:
1. Analyze the Market: Begin by studying the asset's price history and identify clear support and resistance levels. Use tools like Candlestick Charts and Moving Averages. 2. Choose a Trading Platform: Register on a trading platform such as IQ Option or Pocket Option that supports binary options trading. Register at IQ Option Open an account at Pocket Option 3. Select the Appropriate Binary Option: Choose an "In/Out" or range-based option type which is specifically designed for range trading. 4. Define the Trading Range: Set your upper (resistance) and lower (support) boundaries on the asset under consideration. 5. Set Expiry Time: Choose an expiry time for your binary option that aligns with the observed range stability. 6. Monitor and Execute: Once trading, continuously monitor the asset to ensure its price remains within the defined range. Adjust your strategy as needed if the market shows signs of trend reversal.
Practical Recommendations
To enhance your success in binary options trading using the range (between) strategy, consider the following recommendations:
- Always analyze market conditions using Technical Analysis tools before initiating trades.
- Use risk management strategies and never risk more than you can afford to lose.
- Stay updated with market news and trends that might affect price fluctuations.
- Practice your range trading strategy on demo accounts provided by platforms like IQ Option and Pocket Option before trading with real money.
- Continuously refine your skills by reviewing successful and unsuccessful trades, and learn from each experience.
By mastering the range (between) strategy and using reliable platforms, you can enhance your understanding of Binary Options Trading while making more informed trading decisions.
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Register at IQ Option (Minimum deposit $10) Open an account at Pocket Option (Minimum deposit $5)
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