Introduction to Line Chart on Binomo
A Line chart is a basic chart that is represented by a pack of straight lines. This chart uses the closing price of a security that is interconnected to each other in the form of a straight line over a span of time. The chat was developed by Charles Dow, He was only interested in the closing price of a security as the closing price determines the day’s profit or loss.
Key Points
- A line chart is a graphical representation of an asset price that uses a historical and is connected in the form of a straight line.
- The line chart was introduced by Charles Dow, He was only interested in the closing price of a security as the closing price determines the day’s profit or loss.
- The line chart usually plots the closing price which reduces unnecessary market noises and can give you a clear picture of a security trend.
- A Line chart is a basic chart and is really simple to understand However, Professional traders may not find it helpful as it may not have a clear picture about the price trends and reversals and they may look for a better chart type with more information such as candlestick.
How to insert a Line chart on Binomo?
In order to add a Line chart on Binomo. follow the steps below
Step 1: Log in to your Binomo account. In case you don’t have one click here.
Step 2: click the chart button from the left bottom of the trading dashboard.
Step 3: Select the name Line Chart from the menu.
How to trade with a Line chart?
There are multiple ways of trading with a Line chart However, the most popular ways are:
- Bollinger Bands plus Line chart: Bollinger bands is one of the effective indicators. This indicator is made from the composition of three Moving averages lines. when the Line chart is touching the bottom of the Bollinger Band it signals an upcoming bullish trend and you can place a buy trade here and vice versa, when the Line chart is touching the top of the Bollinger Band it signals an upcoming bearish trend and you can place a sell trade here.
2. Support and Resistance plus Line Chart: Support and Resistance is one of the most trusted tools. Before we can discuss how to trade with Support and Resistance plus Line Chart. we need to understand how the Support and Resistance line first.
In order, to draw the Support and Resistance line click on the drawing icon at the left bottom of the page. Next, click the horizontal line from the menu.
Now, Place the Horizontal line below the lows at the same distance for the Support level in the W pattern similarly, place the Horizontal line above the two highs at the same distance for the Resistance level in the M pattern.
Now, Talking about How you can place trades using Support and Resistance. When the price touches the support level you consider placing a buy trade similarly, when the price touches the Resistance level you should consider placing a sell trade.
