All who trade binary options will have access to a number of helpful strategies, techniques, methods, and indicators. Strategies often involve the processes of technical and/or fundamental analysis. On the technical side of things, it’s going to be indicators which are the ingredients that help traders identify existing price trends, after which this information can be used to forecast future price trends. Divergence is a tool that can help you with this.
At a base level, divergence reduces risk levels by allowing you to formulate more accurate predictions for your each of your trades. When used as a technical analysis tool, divergence may be used to help you narrow down any asset movement which would indicate an upcoming price reversal. Reversals are quite common, as no price can move in the same direction indefinitely. Whether you’re using it to identify price trends or reversals, any information which is going to allow for better price forecasts is going to be advantageous. [Read more…]