Trading Stochastics divergence using binary options allows traders to lower risk by using a leading indicator to enter Out of the Money binary options.
Trading Stochastics Divergence Using Binary Options
The Stochastics is a directional indicator that shows when the markets are overbought or oversold but is also a great indicator for detecting divergence. In this video, Gail founder of TradersHelpDesk.com shows how hidden divergence on the lows (higher lows in price with lower lows on the Stochastics) indicates an upward movement on the Dow Jones (Wall St 30 binary option).
To learn more about using the Stochastics indicator for trading binary options, watch the Nadex webinar on Using Leading Indicators for Trading OTM Binaries.
The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere. Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex instruments include forex, stock indexes, commodity futures, and economic events.
Nadex binary options and spreads can be volatile and investors risk losing their investment on any given transaction. However, the limited-risk nature of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction. Nadex is subject to U.S. regulatory oversight by the CFTC.