Trading with binary options in accordance with pivot points can be an interesting binary trading strategy to professionals. The principle behind trading with pivot points is simple: The striking market prices of the performance are used as a reference price and used as an access point for the current trading day
Pivot points for the average price of the performance
As pivot points, the market prices take on a distinct task: They deliver essential signals, as it is appointed with the development of the market value. The pivot points are the result of the opening price, the highest price, the lowest rate and the closing price of the performance. The pivot point is calculated from a third of the sum of the highest price, the lowest rate and the closing price. It is classified as the more significant price for the current trading day because it can be considered as the average value of the performance.
This strategy with binary options is nowadays normally calculated with the help of online tools. They also undertake the investigation of the pivot points. In this way, the trader spares himself the manual calculation. Binary options are good to trade by means of the pivot points. The strategy is classified as structured because it provides a clearly defined initial price for the trade of the following day. Those who align their trading strategy towards the calculated pivot points, have good chances to achieve a long-term success.
Trading according to pivot points – for advanced binary traders
As a trader, one must know that this binary options strategy is indeed structured, but the risk of loss with trading with options also remains with the use of this strategy. The determination of pivot points is therefore, possible for traders who want to be strategically oriented but who bring along a certain risk affinity and who are aware of the risk of their investment. Whether the strategy is suitable for beginners, depends on how consistently one would like to observe the price development of the performance.
Indeed, the determination of the current market prices and the resulting pivot points are carried out by means of an online programme, but the regular engagement with the prices and the correct interpretation of the determined points are always the trader’s responsibility. For this reason, this binary options strategy can more likely be ideal to experienced dealers who are slightly more confident with trading on the floor.
To take the determined and average price values as a single reference point for further developments could, however, be dangerous. The average value of the performance is also, ultimately still no guarantee for the further successful development. However, those who monitor the current market development and keep an eye on the level of the pivot points over a long period, can have good results with this this binary options strategy. That is why it is more likely possible to experienced professionals than to beginners on the floor.