The Intermediate Binary Options E-Book

From eXbino

Welcome to eXbino Intermediate Options eBook

This easy-to-use e-book will take the complex topic of Binary Options and make it simple to understand, so that all traders, at no matter what level, may benefit.

Table of Contents6

.....................6

The Intermediate Binary Options E-Book ..........................

Introduction to eXbino.....................

Trading Psychology ............................................................7Introduction ................................................................................................ 7

The Challenge of Online Trading ............................................................... 7

7 Habits of Successful Traders ................................................................. 7

Important Rules that will Help You Psychologically ................................ 8

Technical Analysis 102 .......................................................8Introduction ................................................................................................ 8

Trend Ranges ............................................................................................. 8

Creating Support and Resistance Levels ................................................. 8

Horizontal and Diagonal Support and Resistance ................................... 9

Elliot Wave Theory ..................................................................................... 9

Relative Strength Index ........................................................................... 10

Trend Trading ........................................................................................... 10

Basic Price Patterns ................................................................................ 10

Head and Shoulders ................................................................................ 10

Double Top ............................................................................................... 10

Double Bottom ......................................................................................... 10

Key Reversal ............................................................................................. 12

Triangle Patterns ..................................................................................... 12

Summary .................................................................................................. 13

Conclusion .........................................................................13

Resources ..........................................................................15

Risk Disclosure ..................................................................15

The Intermediate Binary Options E-BookWelcome to the intermediate binary options e-book. In this manual we take past the beginner level to a slightly more advanced one. We teach you terminology that you have not heard yet, and help you progress towards your trading goals, whatever they may be.

Introduction to eXbinoWelcome to eXbino, your Binary Options Trading platform. We know that while some may believe that our name sounds a bit exaggerated, we believe that our name is a perfect description of what we do. The name eXbino conveys the essence of who we truly are. We believe that our company is a type of superhero in an unjust world. The world which we speak of is a world in which traders, who have little to no basic knowledge about the financial markets or Binary Options, continue to trade and continue to lose their money. The world does not have to be this way; eXbino is here to help.

If we were to state the purpose of our company in one word it would be “knowledge”. Our goal is to provide traders with a strong foundation of Binary Options knowledge and education. That’s all. Of course, the way our traders get to the point we want them to ultimately reach takes a lot of time, but our focus is simple. Give traders the most fundamental and up-to-date information about the markets, teach them how to interpret the information, show them what it all means and ultimately guide them on how to channel the knowledge into a smart trading strategy.

We know as well as anyone that the world of Binary Options can be scary and unforgiving, which is why we started this company and wrote this manual. We realize that while there are many resources with reading material on the subject of trading Binary Options, there is no one out there who takes traders by the hand, shows them how to trade with live shows and real market conditions and helps them to learn to make wise trading decisions. We hope that we can assist you as much as we have assisted so many other traders who are on the same trading journey.

Trading PsychologyIntroductionTo become a skilled trader you must learn to control your emotions. There will be times that your emotions will try to take over, but you must learn to trust your logic and trading education in order to be successful. In this chapter we’ll teach you habits of successful traders and how to gain positive trading psychology.

The Challenge of Online TradingOnline trading usually requires one to open an account with more money than they will actually use in one trade. This can be a challenging situation because without feeling the cash in your pocket, it’s very easy to forget that you’re trading with real money. Therefore, it’s important to remember that the money you trade with is coming out of your pocket, and that you should never place more money in your trading account than you’re comfortable with.

7 Habits of Successful TradersNow here's a summary of our seven habits of successful traders:

1. They understand the true realities of the markets.

2. They’re responsible for their own trading destiny.

3. They only trade with proven methods.

4. They trade in correct proportion to their capital.

5. They understand how to manage risk.

6. They follow long term trend and don’t lose sight of the forest. And

7. They keep trading in perspective.

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From R.N. Elliott's essay, "The Basis of the Wave Principle," October 1940.

8 9Important Rules that will Help You PsychologicallyHere are some important rules that will help your trading psychology. First, learn the rules and foundations of trading that we will provide you with. Second, make sure you’re not trading emotionally. Third, make sure you don’t spend too much time sitting and trading. The only way to gain perspective is by taking a step back. And fourth, learn from your wins and from your losses.

Technical Analysis 102IntroductionAfter previously discussing the foundations of technical analysis, we'll now present a basic level of technical terminology and definitions. In this chapter we'll teach you how to extract information about an asset just by looking at charts. And it's not as complicated as you think.

Technical Analysis is a method of indicating a markets’ future performance by evaluating its past performance, which we do by analyzing charts. Trend identification is the most important aspect of technical analysis, and we’ll now go through how to identify many different trends from looking at just a few Japanese candlesticks. Please review the previous presentation slides for basic trend terminology that we’ll now build on.

Trend RangesTrend is a general theme that is noticed when looking at the direction that an asset is headed. We described 3 trend types: uptrend, downtrend, and ranging trend. We will now describe 3 different trend lengths:

1. Long term trend: To determine if a long term trend is occurring, a traderneeds to view at-least a 52-week graph.

2. Intermediate trend: To determine an intermediate trend, a trader needsto view a graph that covers a length of 3 months.

3. Short term trend: To determine a short term trend, a trader needs toview a graph of about 4 weeks.

Creating Support and Resistance LevelsSupport and resistance levels are created in 3 ways: 1. Traders decide that this is a good price to buy the asset. 2. Traders decide that this is a good price to increase the amount of this asset that they own, and 3. Traders who are nervous this asset will depreciate, will sell it.

Horizontal and Diagonal Support and ResistanceWhen an asset is in an intermediate trend, its support and resistance levels are charted horizontally. When an asset is in an uptrend or a downtrend, its support and resistance levels are charted diagonally. Often times, when a support is broken through it becomes the asset's new resistance level, and vice versa.

Elliot Wave TheoryA man by the name Ralph Elliot came up with a theory while analyzing charts, which states that all charts, while their movements seem random, go through a series of similar waves, over and over again. He believed that investor psychology created these waves.

The wave theory is interpreted with 5 rules:

1. Every action is followed by a reaction.

2. 5 waves move in the direction of a trend, after which there will be 3corrective waves. This is termed a 5-3 move.

3. A 5-3 move completes a cycle.

4. This 5-3 move becomes 2 subdivisions of the next higher 5-3 wave.

5. The underlying 5-3 pattern is constant but the time span of each may differ.

10 Relative Strength IndexRSI is a technical analysis tool to help identify if an asset is overbought or oversold. Basically, the asset's movement is placed on an RSI graph which ranges from 0-100. The chart contains a horizontal line at the 30 mark and at the 70 mark. 30 represents oversold and 70 represents overbought. Whenever the asset reaches the 70, traders interpret this to mean that it will be selling off in the near future. When it reaches the 30, this is interpreted to mean that the asset will be bought in the near future.

Trend TradingWhen trading trends it's important to understand that depending on the time frame you're trading, the time amount on the chart you're viewing will differ. You want to be able to view a trend but not too much or too little time that you won't be able to view any specifics. If trading with a daily chart, view a weekly time frame. If trading with a 4-hour chart, view a daily time frame. If trading with an hourly chart, view a 4-hour time frame. If trading with a 15 minute chart, view an hourly time frame. If trading with a 5- minute chart, view a 30-minute time frame. And if trading with a 1-minute chart, view a 5-minute time frame.

Basic Price PatternsA price pattern is a way of indicating a trend or an asset's reversal, by looking at a limited number of Japanese candlesticks.

Head and ShouldersThis pattern is identified when an asset rises to a high and then declines, then, the asset rises above the former high and declines again, and finally, the asset rises again, but not as high as the second high, and declines again. When head and shoulders is identified, it often signals a trend-reversal.

Double TopThis reversal pattern is identified when an asset rises to a high, then declines, and then rises back up to its previous high. This pattern is generally less reliable than head and shoulders.

Double BottomThis reversal pattern is the opposite as double top. It's identified when an asset falls to a low, then rises, and then falls back down to its previous low. It’s considered a sign of an upcoming appreciation.

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12 13Key ReversalThis reversal pattern requires 3 rules in order to qualify:

1. In an uptrend, there must be at least 3-in-a-row green candlesticks

2. The length of the apex candlestick shadow line must be at least thelength of its body, and

3. The closing price of the apex candlestick must be lower than theclosing price of the candlestick before.

Triangle Patterns• Bullish triangle: This pattern is identified where the support line is

diagonal, and the resistance line is horizontally upwards. This patternoften signals a bullish breakout.

• Symmetric triangle: This pattern is identified where the support lineis in an upward diagonal, and the resistance line is in a downwarddiagonal. This pattern often signals a bearish breakout.

• Bearish triangle: This pattern is the opposite of a bullish triangle. It'sidentified where the support line is horizontal, and the resistance line ishorizontally downwards. This pattern often signals a bearish breakout.

SummaryIn this chapter you've learned the basics of technical analysis, how to identify trend ranges, how support and resistance levels are created, different types of support and resistance, and how to identify basic price patterns.

ConclusionOne of the main reasons why trading Binary Options is so popular is because you can easily enter and exit the market. It can be a simple way to make money without having to put in much effort, but only as long as you understand the how to read, understand and interpret the market.

Binary Options pays a fixed amount to traders, which is unlike some other options which may pay varied amounts. With Binary Options a trade can end without being worth anything. If the asset expires in the money, the trader gets a fixed pay which is pre-decided. This amount is not fixed when trading some other types of options.

You might feel uneasy by the idea of using Binary Options for day trading. However if you truly understand Binary Options, this knowledge will act as a partial hedge, and give you the opportunity to profit. If the call and put options are used wisely, it can reduce the chances of risks to a great extent. So if the execution of a binary option is done properly then the

14 15chances of earning double profits increases considerably. In this way there are many benefits of utilizing Binary Options to get some extra money out of your investments.

A well planned binary trade like other hedging strategies will have a great impact on the risk taken against your total holding. Deciding whether to hold back or not depends on various factors. One should rely on the news and many other sources that will help to analyze the future of the market.

The Option is in your hands!

As you can see, there are many ways to profit with Binary Options, and this was just a small taste. Binary Options gives you numerous ways to make money in any market and in any direction. You do not need to wait to have a bullish or bearish market outlook in order to be successful. All you need is to know what to look for.

Make sure you pay attention before an important economic event or print is due out. Remember, that in order for an asset to make a large move, there usually needs to be a motivator. One of the most reliable motivators for large moves, whether up or down, is economic events.

Does this pique your interest? Do you want to take advantage of these and other profit opportunities? We invite you to look at eXbino's educational videos and live shows. eXbino offers up-to-the-minute educational content and live broadcast trading for you to take advantage of.

eXbino takes the guesswork out of Binary Options trading because we teach YOU how to do the research and make it easy to understand what you’re looking at.

Whether you're new to Binary Options or a semi-professional, you'll move through each trade step-by-step as we take you by the hand and lead you on a path towards your trading goals.

Resources• Read market news at sites such as Reuters.com, Bloomberg.com and

finance.yahoo.com.

• See the upcoming news and events at forexfactory.com

• Look at asset futures via finviz.com/futures.ashx.

Risk DisclosureBinary Option trading and/or Forex trading carries a significant level of risk, and may not be suitable for all investors. Before deciding to invest in Binary Option and/or Forex you should carefully consider your investment objectives and level of experience. You should be aware of all the risks associated with Binary Option trading and/or Forex trading and seek advice from an independent financial advisor if you have any doubts. You should only trade with money that you can withstand losing, and you should never trade under the assumption that you cannot lose the funds you trade with.

None of eXbino.com or any of its officers, directors, employees, other personnel, representatives, agents and/or independent contractors is, in such capacities, a licensed financial advisor, a registered investment adviser or a registered broker/dealer. None of eXbino.com or its personnel gives investment or financial advice or makes investment recommendations.

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