Interpreting price charts is a vital part of technical analysis and a useful tool in any binary options trader’s armory. But different traders have varying needs they either want simple charts that provide basic information that’s easy to see or they need complex charts that show comprehensive data. Simple needs can usually be fulfilled with a line chart but anything more complex may require a candle chart.

Market Prices

This type of chart was developed by Japanese rice traders to track market prices. However, the level of data that such a chart provides makes it suitable for binary options traders who need to obtain full information about price movements over short periods.

A candle chart is so called because it contains a series of rectangles (the candles) that each have connected vertical lines (the wicks). Each of the rectangles represents a time period with the top and bottom indicating the opening and closing price for that period. The rectangle is often colored green if the price has moved up during the period or is red if the price has fallen.

The candle’s wicks show the highest and lowest prices for the time interval, with the lines extending up from the top and down from the bottom of each rectangle. Thus, using a candle chart, it is easy to see the high, low, open and close price for each time interval and also whether the price has risen or fallen during the period.

Up-to-date Prices

Candle charts provide a colorful and comprehensive means of analyzing price data and so are useful to binary options traders who want to predict price movements. However, they only have real value if they show up-to-date prices. These can be obtained from websites such as that of Banc De Binary (bbinary.com), which publishes real-time prices for a wide range of assets. Access the website regularly to succeed in binary options trading through having the latest details.