Binary price speedometer / visual guide

#1

Gamma, Beta, Theta. One of those affects the speed of change in pricing on a binary, I forget, DM suggested to spend my energies learning elsewhere which I fully agree with.

That said, the concept is good to have a general feeling for and to know sort of where the important price affecting boundaries or hills in the road of sorts are. I made a little reference picture, sort of like a thermometer, with areas or zones listed showing where price moves the fastest or slowest, along with points of resistance if there are any, such as the shown $95 and $5. Part of my reasoning for drawing this up is because I had a TP never go through even though it bounced off of $94.5 several times, that 50c difference was clearly more powerful than I thought.

This is an idea that could use some input, and is clearly in need of adjustment. I’m not even sure if Gamma is the right thing, or my price points have importance at these levels or not, such as $5 and $95 should be $4 and $96, or what have you. Just trying to put some visualization to work here as we all learn differently. I also believe the pricing moves in a curve of resistance/speed, rather than in chunks, but that is just a hunch. Regardless, looking for the main areas within the scale of $0 to $100 to be aware of, and I think this might help some folks. Please let me know what you know and I’ll make a new updated picture.

Thanks,

Rob

gammathermo.JPG (17.7 KB)

#2

Use the image icon to insert a image - choose url - and uncheck the button

You are right that is gamma :slight_smile: The closer you get to expiration the faster the binary will move towards 0 or 100. The closer you are to the middle the faster it will move. The closer you get to the edge 0 or 100 the slower it will move.

The best thing to do is 1st to look at the actual binary price ladder and see where the prices are - ie f your going for 95 but you see when you get in that prices are at 94 or maybe 97 and 92 is the (what i call 2nd best/worst price) then that would be a better target.

Also using the simulator will help you up front in determining exit price but the best thing is just looking at the price ladder.

Pictures are helpful thank you. I know your helping us put a lot of stuff together and it is appreciated the more on stuff like this the merrier. Thank you for contributing to apex content and courses to help all the traders here :slight_smile: