Binary Trading Technical Analysis Flashcards
6 cards from real Binary Trading practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Binary Trading Technical Analysis flashcards as text
What does a 'support level' indicate on a binary trading chart?
Answer: A price level where buying interest is historically strong enough to prevent further decline
A support level is a historical price zone where buying pressure has consistently halted downward price movement, often used as a call option entry signal.
What does a 'resistance level' signify in technical analysis for binary trading?
Answer: A price zone where selling pressure historically prevents further upward movement
Resistance is a price zone where selling interest has consistently capped upward movement, often used as a signal for a put option trade.
What does the RSI (Relative Strength Index) measure in binary options technical analysis?
Answer: The speed and magnitude of recent price changes to identify overbought or oversold conditions
RSI is a momentum oscillator ranging from 0-100 that signals overbought conditions above 70 and oversold conditions below 30, helping binary traders time entries.
What does a 'candlestick chart' show that a line chart does not?
Answer: Open, high, low, and close prices for each period, providing more detail on price action
Candlestick charts display four price points (open, high, low, close) per time period, revealing price patterns and market sentiment that a simple line chart cannot.
What does a 'bullish engulfing' candlestick pattern signal in binary trading?
Answer: A potential reversal from downtrend to uptrend, suggesting a call option opportunity
A bullish engulfing pattern occurs when a large green candle completely engulfs the prior red candle, signaling that buyers have overwhelmed sellers and a reversal may follow.
What is a 'trend' in technical analysis for binary options?
Answer: A consistent directional movement of an asset price over a period of time (uptrend, downtrend, or sideways)
A trend is the general direction in which a market is moving over time — identifying and trading in the direction of the trend is a core binary trading principle.