Mathematical systems and signs to make money with Online Binary Options

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Support and resistance

When read graphics in search of signs that indicate a change in trend before anything we need to look for support and resistance. We could say that the support and resistance are the stops between moving the price of an asset for a specific period of time.

The media is the minimum price and the maximum resistance. When the asset price approaches one of these values ​​bounces, changing trend until closer to another value and then undergo a change.

Breakups

When we read graphs we see that the price of an asset has passed one of these stops and started a new period, we speak of a break.

Thanks to technical indicators, such as those described in this section, we try to predict at what point will produce a rebound in the price, when this is near enough to the resistance or support and will change the direction or if instead the trend will continue and will produce a break. We also use technical indicators to differentiate between a small peak and a real break, measuring the strength of a trend.

It is usually very easy to see the support and resistance, even at a glance we can see in the graphs. Sometimes these support and resistance follow a trend, that is, when they break the asset continues to trend upward or downward and took the medium to long term and establish a new support or resistance within certain parameters. Other times the asset price varies and does not follow a trend in the medium to long term.

 


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