The Nasdaq’s Latest Movements And What’s Behind Them

The Nasdaq Composite recently slipped into negative territory for the year, largely due to China’s economic crisis. By the end of September, the Nasdaq stood at 4734.48, just about a point and a half below its 2014 close of 4736.05.

Along with China’s economic slowdown, investors have also been worried about the overall stock market slump and Volkswagen’s emissions scandal. As the charts show, the Nasdaq Composite has been at risk of falling back into correction territory.

Analysts remain pessimistic about any signs of a rebound, with stocks across the board trending downward. 🔗 More: » The Stock Market

Bearish market

Since the Nasdaq Composite is heavily weighted toward technology, Apple and Microsoft — its two largest components — have a major impact on its momentum. The Nasdaq’s recent moves have shown a clear bearish bias.

Slowing global PC shipments and another possible cutback in capital expenditure have made conditions difficult for the technology sector, even though it weathered the previous crisis relatively well.

Read more: The Nasdaq’s Latest Movements

♞ Trading using the Bollinger Bands

Bollinger Bands is a very popular technical analysis tool for trading binary options. A trading strategy based on Bollinger Bands is well suited for trading High/Low Options.

What are the Bollinger Bands?

Bollinger Bands is a tool created by John Bollinger in the ’80s. Bollinger Bands and their related indicators can be used to compare current market conditions with those of the past. In other words, they measure the ‘highness’ or ‘lowness’ of an asset’s price relative to past closings. Using Bollinger Bands, binary options traders can identify assets that have reached their short-term price limits and are expected to reverse direction to correct and absorb broader current price levels.

Bollinger Bands Formulation

The Bollinger Bands model includes three (3) curves.

◘ The Middle Band calculates a moving average of an asset over a period T.

◘ The Upper Band and the Lower Band are positioned at a specific distance above and below the Middle Band. This distance equals twice (x2) the standard deviation of the price for the period T.

Standard Settings of Bollinger Bands Tool

The standard setting for the period T of the Bollinger Bands is 20 periods. Traders may adjust the Bollinger Bands period to less or more than 20 periods based on the past behavior of each financial asset.

Read more: Trading using the Bollinger Bands

What is the Parabolic SAR

Originally developed by Welles Wilder, the Parabolic SAR is a technical analysis indicator that identifies the momentum of an asset’s price—in other words, the direction of the leading price trend.

Let’s look at how we can trade Binary Options using the Parabolic SAR. Suppose a trader chooses to trade EURUSD on a short-term time frame. Below is a 1-minute EURUSD chart.

Chart: Parabolic SAR on EURUSD

Read more: Trading Binary Options using the Parabolic SAR

🆙 Binary Options Trading Signals

Most binary options traders rely on their systems to predict future price movements and trade the market, while others turn to the effectiveness of signaling services.

What Information is Included in a Binary Options Signal

Binary options signals can target any type of financial asset, including Forex currencies, shares, indices, and commodities. A binary options trading signal typically includes the following information:

1. A financial asset identified as being in an oversold or overbought price range

2. A strike price at which to buy the asset

3. A target price

4. The duration of the contract (expiry time)

How Much Does a Binary Options Signal Service Cost

A signaling service can be offered for free or may cost several hundred USD per month in subscriptions. Typically, paid binary options signals cost between 60 and 100 USD per month.

Read More: 🔗► Find here how you can create your own custom Binary Trading Signals

Read more: Binary Options Trading Signals