Free Binary Options Charts

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Different Types of Charts for Binary Options Trading

When you start trading binary options, there are several types of charts you will see most often.  Each type of binary options chart has advantages and disadvantages, and once you understand the differences you’ll likely find that one type appeals to you and your trading methods. Before starting there a few points about charts which are universal to all forms of charts discussed below. The Y-axis, or numbers written up and down along the side of the chart, is the price. The x-axis, numbers along the bottom of the chart, depict the time of day or date. Therefore, all these charts show price movement over time.

Tick Chart

The tick chart is a line that shows every movement the price has made. Typically these charts only show a few minutes of data since the price is constantly moving. The price point at the far right is where the price is at now, while the data to left is where the price was at times prior.

The advantage of this type of chart is that it shows all the price movements over the last several minutes. The downside is that you can’t see any price data further back than that. Being able to see more data allows you to see if there is a trend (a sustained price move in an overall up or down direction), or any chart patterns developing.

On a binary options broker site you will see this type of chart if you click an asset and choose an expiry time that is fairly close, such as 5, 10 or 15 minutes away for example.

Figure 1 shows an example of a tick chart.

Figure 1. GBP/USD Tick Chart

fig 1 tick chart

 

The chart shows roughly 30 minutes of data, and the black horizontal line represents the current price. The red vertical line indicates when the option expires.

Over this timeframe we can see that the overall price trajectory is down, as each move higher is lower than the last, and each move lower reaches a lower price.

Line Chart

A line chart looks very similar to the one shown above; you’ll see a continuous line moving from left to right across the chart.

The tick chart is also a line chart, except that the tick chart shows you all the price movements since it only shows a short of amount of time. A line chart does not; this will be explained in a moment.

If you want to see more data –such as the price movement over hours or days–then you can use a line chart.  Lines charts “summarize” the data, so you can see longer periods of time.

Typically you will see this type of chart when you click on an asset and choose an expiry time or date that is further out, like several hours or the end of the week.

By selecting an expiry that is further out, you’ll notice that the values along the x-axis shift from times to dates. Figure 2 shows an example of this. The expiry is not shown since it is a couple weeks into the future.

Figure 2.

fig 2 line chart

 

This chart looks very similar to figure 1 (the tick chart), but the x-axis has changed so that you can how the price has moved over a longer period.

Something else is very important though. Unlike the tick chart, with a line chart you don’t see every movement. The line chart only reflects the closing price for each interval the chart uses (unknown in this case since the brokers typically do not allow you to configure your own charts). The closing price is the last price at the end of defined period, such as 5 or 15 minutes for example. For every 15 minutes (or other internal) only the close is recorded on the chart, and then each close is linked to each other creating a continuous line.

This “summary” data makes it easier to see trends and doesn’t bombard you with too much information. The drawback is that you may not be trading with all the information you need. To explain, we’ll look at one more type of chart…

Candlestick Chart

Figure 3 shows a different style of chart, which shows more data, called a Candlestick chart. The candlestick chart below only shows the data from 15/08, the last couple days shown on the line chart (figure 2).

Figure 3. EUR/USD 15 Minute Chart

fig 3 candlestick

Each bar on this chart represents 15 minutes. If the bar is green it means the last price in that 15 minute period was higher than the price at the start of the 15 minutes. If the bar is red, it means the last price is lower than the first. The “fat” part of the candle represents the open and close. If the bar is red, then as indicated before the close is lower than the open. If the bar is green then the close is higher than the open. The small “wicks” coming out of the tops and bottoms of some of these candles represent the high and low points reached during that 15 minute time period.

As you can see, this chart shows more information, and in a more visual way. I have noted one important distinction on the chart. After the price surged near the middle of the chart, a decline followed it (sizable red bar), which was then followed by another green bar. On the line chart in Figure 2 you can’t see this. The line chart makes everything look clean, while in reality this chart shows that the market is typically more jerky. And each of those jerky movements could be the difference between losing and winning.

Final Word

For short-term trading, such as expiries of about 5 minutes or less, use a tick chart. Ideally though also check out a longer-term expiry so that you can see what the asset has been doing over the last several hours or days as well. The best trades are typically when you can get multiple chart time-frames to line up. For example, you see that the trend over the last several days is up, and the price is also moving up on your tick chart. Sometimes simple is best, but if you want to get more advanced with your analysis you may want to check out candlestick charts. Since most brokers don’t offer these you’ll need to source them from somewhere else on the web.

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  • Stephnie Gammill

    My name is Stephnie Gammill ,as for those who never had about me, i am an account manager and expert trader with over 3years of experience. I’m posting here today because am willing to help those of you [traders] who might have practically lost some of their savings/investments in trading BINARY OPTIONS. My aim is to help straighten your learning curves and build in you the potential knowledge to conquer the binary
    trading world. Therefore if you’re interested in recovering all you might have lost or need a well managed account.? Quickly add me up on gammillstephnie@gmail.com

  • larry yorke

    Trust me trading binary option doesn’t have to be so difficult with the right information on what assets to trade on, When to trade on them and how to trade on them, but i guess its what a few professional are willing to tell you. I’ve got quite a few tricks on binary options trading that will guaranty you instant success. Email me on larryyorke@gmail.com.to erase your doubt.

  • dwight holmes

    financial freedom is available to those who learn about it and work towards it, those were the words of Robert Kiyosaki and this has been my watch word, when i got into the option market a few years ago, the first six months were horrible as loosing my funds were the only thing i knew best, lost almost $10000 until i came across a strategy which i learn how to use in a few days, making me over $15000 weekly i can say i have been successful, now i know there are so many of you out there still loosing money, time to get successful get in touch and i ll show you the path. dwightholmies@gmail.com

  • Lilly Chater

    The SWAT V trading strategy is amazing, i cant believe i was blind to the real secrets about binary options while its been staring me in the face, its totally amazing how quick my story has changed about binary option, you all should go check that strategy out its amazing, need help or wanna ask questions just get at me lillychaters@gmail.com

  • lilian amaro

    STRICTLY FOR THOSE WHO TOOK BONUSES AND CAN’T WITHDRAW/CAN’T WITHDRAW LOST FUNDS AFTER TRADING.
    If you know you have lost above 5000 and you lost all by trading , kindly let me know so you can get you money back direct from your broker because your money was supposed to be insured , this is applicable to both Binary and Forex traders, i have helped a lot of people get back their funds and i won’t stop until i help thousands and be satisfied and i will help you get the full funds back in one week, this can only be done if your broker is among regulatory broker laws. contact me on lilianamaro1234@gmail.com) on what to do.

  • Elika

    just quite good deals http://www.optdck.com/

  • wayne thomas

    I have been trading binary options for about 3 years now, I’ve come across a lot of bad press, but the simple thing is that people think that using the robot system works, but the fact is, IT DOES NOT WORK, you negotiate binary only on fundamentals, the news making rounds is having a proper risk management system in place, as the entry point is the key, you must also be careful with brokers you use as there are 2 types of market makers. I make about £ 75,000 + per month consistently using simple and easy strategy.waynetommy343@gmail.com.for details…

  • pamela bannings

    knowledge is power they say, and trust me there isn’t no better truth than this when it comes to binary options trading, i’m tired of watching a lot being deceived by brokers and scammers out their with fake promises, binary options requires knowledge, and experience plus a really good strategy, without these, id advice do not trade or put your money anywhere….. and for those interested in really making their way ahead i this business contact me on pamelabannings@gmail.com

  • sammie bent

    using the SWAT V trading strategy was how i LAUNCHED myself into a world of financial freedom, after working my ass off as an ordinary working class lady for over 7 years and had nothing to show for it until i started trading binary options, no doubt i lost alot of money learning like most of you out there, but that ended the day i got introduced to this strategy, sammiebent@gmail.com contact me and ill share if you bent on succeeding in the option market.