When investing in binary options, there are two major approaches to consider, technical analysis and fundamental analysis.
All persons wishing to invest in the financial market should do following a methodology that allows them to study the financial market; one of these is the technical analysis; used for the first time, apparently, by the Japanese to predict the price of rice while he was in harvest.
Technical analysis in binary options trading relies almost exclusively on the use of binary options graphics representing the behavior of the assets on which the bankroll is reversed.
Observing the behavior of prices:
The main objective of those who use the technique of market research is to find out what the levels of resistance and support in the price bounce or, conversely, advance to the next level.
To find these levels each investor uses the strategy that suits you depending on your experience and needs. The most popular techniques are Bollinger bands, Fibonacci series, the Gann Fan, among others.
The main focus of technical analysis is that any element that somehow have influence on the market, regardless of its nature, has some sort of impact on the price of an asset.
Regardless of the approach used to operate in the financial market, a smart trader has to be clear that any tool is subject to a margin of error does not depend on anyone but the market movement, therefore, they are infallible since the same market is unpredictable and leads to events that are sometimes inevitable and even unusual. For a little more information about these concepts, you can read binary options Wikipedia and learn more differences between these approaches.