It’s well known that according to the Elliott Waves Theory there are many triangles that can be used for the technical analysis. The key to this analysis is consolidation since markets spend more that 65% of the trading time in those consolidation areas. Thus, educating yourself and understanding how trading markets are consolidating gives you a great advantage over other traders.

Binary options trading can indeed use any financial products, but trading currency pairs gives a trader a lot of possibilities, as well as Forex.

Benefits of the currency markets

Those possibilities mostly come from the fact that this market is opened 24 hours/day. That’s why there are unlimited expiration dates for any types of options, particularly if your binary options broker allows traders build their own option. In that way, there are many brokers in the market that offer an inbuilt option in their platform where a trader can build an option according to their own preferences.

Forex markets are known to be very volatile. For that reason, this type of triangular formation is very common there. Shortly, if this pattern is bullish, requires the triangle end to come above its own start. If it is bearish, then its end needs to come below its start

It’s a very rewarding experience since it appears at the end of extremely complex correction. Knowing when this type of triangle is broken allows a trader to set an appropriate expiration date and time based on the timeframe within which the triangle appeared. This, subsequently, gives him a competitive advantage over other traders.

There are various ways to take advantage of the Elliott Waves Theory and we think you should explore it as much as you can in order to use it fruitfully in your trades. We have already explained quite a lot about it in details in our Binary Options Education series, featuring different examples and explanations. Make sure to check them out and ask us questions in the comments in case you have any.

Related Articles:

• What is Elliott Waves Theory?
• Market Geometry Basic
• Elliott Waves – Trading the 2-4 Trend Line Break
• Elliott Waves – Trading 5th Waves Extensions Impulsive Moves
• Elliott Waves – Implications of a Running Correction

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