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Such tweaks require minimum effort on your part, but they can make a significant difference
in your earnings.axax

Such tweaks require minimum effort on your part, but they can make a significant difference
in your earnings.

to momentum indicators helps you to stick with trading technical indicators and only
switches the indicator you trade.

Such tweaks require minimum effort on your part, but they can make a significant difference
in your earnings.

Are there limits to using time frames for binary options?


Time frames are a very helpful tool for your binary options trading, maybe even the most
important one. They do, however, also have their limits. There are some time frames you
should never trade with binary options and some that are of limited usefulness.
The most obvious limitation is that time frames of days, weeks, and months are impossible to
trade with binary options. In a price where one candlestick aggregates the price movements
of one month, you can easily see the market movements of multiple years or decades. Since
binary options feature expiries of only a few hours, such long time scales are incapable of
helping you make good decisions. The same applies to charts with a weekly time frame.

Daily charts can be important to understand what the market is doing and which big-picture
technical events will influence the price today. You should, however, avoid trading daily
charts directly. When you find a significant, switch to a shorter time frame and trade the
event from there.

Shorter time frames can be of similarly limited usefulness. One-second time frames provide a
much too erratic market environment to trade effectively. Even the shortest expiry you can
find with binary options – the 30 seconds expiry of short-term options – is too long to make
money. Other binary options types usually start their expiries at 5 minutes, which is even less
suited for this trading environment.

We generally recommend staying away from time frames shorter than 30 seconds. Shorter
time frames might seem attractive because they promise an almost endless amount of trading
opportunities, but these opportunities usually look much better than they are. They are the
result of random market movements and have no power to indicate future prices. By trading
them, you are likely to lose too many of your trades to turn a profit.

Stick with time frames from 30 seconds to one hour for your trading. Stay away from shorter
time frames and use longer time frames for additional diagnostic purposes only, but never
trade them directly. Then you should be fine.

Conclusion
Time frames are a powerful tool that can improve your trading significantly. They can make
your trading more profitable and less risky, which is a unique combination of advantages that
few other tools allow.

There are two important things to understand about time frames:

1. Different time frames influence each other. To make the best predictions on your
current time frame, you have to understand how it relates to longer and shorter time
frames and if these time frames limit the predictions you can make or allow for new
predictions you are unable to recognize on your time frame alone.
2. Shorter time frames provide more trading opportunities but also feature a more erratic
market environment. To learn how to deal with these environments, we recommend
you start by trading longer time frames and work your way down to shorter time
frames.

When you understand these two main points, you can deduct most of the other points, for
example how to manage your risk on each level and how long to choose your expiry.

If time frames seem a bit confusing at first, do not worry. It will not take long for you to learn
the basics and get an intuitive feeling for the different time frames and how they influence
each other. Start with the time frame that seems the most natural to you right now and work
your way through the other time frames.

Time frames can improve your trading significantly, and every serious trader should take the
time to learn and understand them.

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