One of the ways this can be achieved is by being able to predict price breakouts. This leads us to ask the question: what really is price action, and what determines the behaviour of price action at any given point in time?

The concept of price action is simply a depiction of the activity of traders in a particular market. Traders are in the market to make money. If they see something that will present itself as a market opportunity, they will put their money in the market to make the trade. At this time, we will see prices moving in one direction or in the opposite direction. If traders see nothing to convince them of an opportunity, they will sit on the fence and do nothing. At this time, the price action will hardly go anywhere except just trend sideways.

Fortunately, the binary options market helps us to trade the price action, whatever that may be. Unlike in forex trading or other markets where you need the market to be in motion to make money, you can actually make money in the binary options market even if the prices of the underlying asset stay still.

There are many methods and techniques to make the most out of binary trading. These techniques are based on the general observations made by studying the market trends for a very long time. One such reliable method is known as trading breakouts using pivot points. Pivots are the quantized horizontal lines used to mark the prices of an asset. As the name suggests, trading breakouts using pivot points deals with the analyzing the candles breaking through the pivot point. Here is a step by step tutorial to work out with this method.

Step 1. Make up your mind to act fast and be ready to take risks and start analyzing the stock trends.

Step 2. Look out for stock inactivity- Breakouts generally occur after a long period of stock inactivity i.e. stocks of an asset not showing significant gain or loss and staying within two strong pivot points for a long time. The strength of a pivot point is determined by the number of times the price of a stock touching the pivot point and not being able to cross it.

Step 3 :Now check if the prices of the stock have tested the resistance level multiple times, with the points of retracement getting continuously higher. This indicates a buying pressure of the stock. When you find such a pattern you should trade in as it is a reliable signal that stock values will breakout upwards. You should place your money quickly on the prediction that the value of the stock will rise.

The opposite is also the case for a downward breakout. If the pivot levels are tested continuously with points of entrancement getting continuously lower,you can be sure of a selling pressure. The price of the stock in this case can be predicted to fall and you should put your money based on this assumption fast.

At other times, the buying or selling pressure may already be in such forceful effect, that the price action just rams through the key levels. Look at the chart below: