Using Fibonacci Time Zones Tool in Binary Options

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The Fibonacci Time Zone indicator is another tool out binary options world time zones the Fibonacci stable which is based on the Fibo ratios and works just like the Fibonacci retracement and expansion tools. However, the Fibonacci Time Zone indicator plots the areas where reversal of price action is to be expected as vertical lines as opposed to the horizontal lines of the retracement and expansion tool.

The starting point of the Fibonacci time zone strategy is to be able to draw it correctly on the charts, understand what the vertical lines signify and then use the information derived therein to create a strategy for trading the binary binary options world time zones market.

The Fibonacci Time Zones tool is based on a sequence of numbers known as the Fibonacci ratios. These number sequences are derived by adding the previous two numbers to get a third number. The sequence is thus listed as follows: This will be reflected in the appearance and spacing of the time zone lines as they are plotted on the binary options world time zones.

The Fibonacci time zone tool is drawn either from a swing high to low, or a swing low to high depending on what the trend of binary options world time zones asset is. The indicator will then draw the vertical lines that represent each time zone automatically. The lines tend to cluster at first, reflecting the closeness of the numbers that constitute the number sequence, and from there the lines tend to become less clustered.

These lines are potential reversal points. After the lines are plotted, they will look something like what is shown below:.

We will see here that the tool was drawn from a swing high to swing low, and we can see possible reversal points binary options world time zones time zone ratios 1 and 8. Many authorities will advise ignoring the first 5 time zone ratios, but then if you use a long term chart such as the daily chart as shown above, you can still find opportunities between the clustered areas.

Usually, the Fibonacci Time Zone tool is not super-accurate when it comes to picking out these reversal points. The tool must be combined with other indicators of technical analysis, as well as candlestick patterns to pick out these areas of reversal as accurately as possible. The trades to take on the binary options platforms using the Fibonacci Time Zone tool are the Call option and Put option contracts.

The expiry times of the contract is taken to be the time distance between time zone lines to be used for the analysis. When you trace the Fibo Time Zone tool from a swing low to high and vice versa, note that you are doing this in real time and so the ratios that will follow will appear on the chart in areas where the price action is yet to binary options world time zones, i.

These will therefore form areas of projections of what the price action will do at those areas. Binary options world time zones trace for the trade can be made binary options world time zones from swing high to low, or from swing low to high.

This is because the Fibonacci time zone ratios are not very reliable indicators for predicting the direction of price movement. Hence we will combine this trace described with our colour-coded MACD histogram indicator. If the MACD histogram is blue at line 2, then the bias for the trade is upwards. Wait for the price action to bounce on the horizontal line between time zone line 2 and 3. Trace the time zone tool either from a swing low to swing high, or vice versa.

Note the colour of the MACD histogram at the number 2 time zone line. Then trace a horizontal line from the high of the candle on line 2 across to line 3. If the MACD histogram is red, then the bias for the trade is downwards.

Wait for the price to be located below the line from line 2 to 3, and then wait for it to pullback upwards to this line. Once it is rejected at this line i. It is pertinent to state that this strategy is binary options world time zones performed on the 4 hour charts exclusively. Practice this on demo until it is perfected. You can also download the MACD indicator used for this strategy by clicking on this link.

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Although binary options are a global trade, not all assets will be available all the time. Be sure to check carefully when the financial markets for your chosen assets are open to trade.

The Opening hours are: That said, a good little tip is that if you are based in the Eastern Time zone, you are not restricted to these hours, as the first four hours overlap with the last four hours of the London market session and therefore there is a high volume of trading within these four hours.

Leading to high price volatility, and with it, plenty of binary options opportunities. Whilst you can clearly trade in any market, there is no denying that the activity on the US stock market leads to the best chance for price swings.

EST, however, it is not uncommon to see price activity fall to very low levels from 12 P. EDT when traders break for lunch. However, in many cases the time may be shorter, so always check with your binary options trading broker to find out when you can trade in your favourite or chosen assets. Ready to start to trade binary options online?

Learn how to lower you trading risks with the right binary options strategy. We cover the basics and advanced trading strategies. Know when to bet with the latest market hours, global economic calendar and free e-wallets for fast and secure deposits. We use cookies for your improved experience. By using our site you agree to the use of them. Know when you can trade online Although binary options are a global trade, not all assets will be available all the time.

More binary options tools Best binary options brokers 10Trade Review. Best Binary Options Brokers Ready to start to trade binary options online? Binary Options Strategies Learn how to lower you trading risks with the right binary options strategy. Free Financial Tools Know when to bet with the latest market hours, global economic calendar and free e-wallets for fast and secure deposits.