Trading Binary Options on Market Geometry

Trading Binary Options on Market Geometry One of the oldest and most widely used forms of trading analysis uses what is called Market geometry. It is a theory that just like in history, market trends tend to repeat themselves. Why is this important in binary options trading; because as binary options traders the most important component of placing a good trade is the accurate prediction of price action.

The main premise of Market Geometry is pretty simple. You look at an analysis chart and the information that is contained on the left side of it and then you look for similar patterns that are beginning to form on the right side of the chart to predict price movement.

It has been proven time and time again that markets tend to move in cycles and that these cycles are repeated over and over again. So don’t be afraid to incorporate Market Geometry into your trading strategy. Looking at the market and how it acted previously is often a good indicator of what will happen again and can offer you some solid information regarding price action.

Remember, Market Geometry has been around a long time as a stock analysis tool and in trading analysis; methods don’t last long unless they are proven to work time and time again.

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References and Further Reading:

1. Fundamental Analysis (A Kritzer – 2012)

2. High frequency trading system design and process management (X Xiao – 2009)

3. Foreign Exchange: The Complete Deal: A comprehensive guide to the theory and practice of the Forex market (J Sharpe – 2011)

4. Tobin Tax and Exchange Rate Volatility: A Reassessment (O Damette – 2012)

5. Methods and Systems for Price Block Interruption (DI Tazartes, Y Gou, KS Groves – 2008)

John Miller
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John Miller

John has worked in investment banking for 10 years and is the main author at 7 Binary Options. He holds a Master's degree in Economics.
John Miller
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