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The principle of a binary search can be generalized to any type of problem provided the
elements of the search can form a sorted list or sequence and it is possible to make a
comparison on the order in the sequence. Playing the number game: Say we have a
number range from 0 to 100, and now you have to pick the number I'm thinking of and
depending on your guess ill answer with either "correct", "higher" or "lower". What
number would you choose? The binary search provides the quickest solution to this
problem; the number you should choose is 50.
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The algorithm is one of the most efficient methods for locating the position of an element
in a sorted list. The way it functions is by going straight to the middle of the list and
checking whether the value is greater than, less than or equal to the element it's
looking for. If equal to, then the element has been found, if not, then the algorithm
eliminates half the list from consideration, and repeats the procedure on the remaining
half. Thus, the number of elements needing to be checked is halved each time.
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So, back to the number game: Why was "50" the best guess? Well in the best case your
guess is correct, I was thinking of the number 50. In the worst case you'll either get a
"Higher" or "Lower". Now think about the following, if you got "Higher" you eliminated
numbers 0-49, or if you got "Lower" you eliminated 51-100, in other words, either way
you eliminate HALF the possibilities. Now, let's say my response was "Higher". What
would you guess after? 75. Since it's in between 50 - 100. If you didn't guess correctly,
you'll be facing the similar scenario as before. You'll end up eliminating half the
possibilities and eventually guessing correctly (assuming of course the number I was
thinking of is within the bounds 0-100)
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In computer Occupy Wall St Binary Options programming terms, the algorithm
operates on an ordered list of values and uses the order to conduct the search. So, for
a list or array containing a large amount of elements the binary search will, on
average, out-perform a linear search - in a list of one million items, a linear search will
take an average of 500,000 comparisons to find a particular item. A binary search will
take a maximum of 20. Pretty impressive huh. It is no secret that the Forex market can
be a very profitable place to be if you want to make money by trading currencies.
However, it is also no secret that achieving consistency within the Forex market
requires a lot of preparation (you need education and reliable trading tools) because
not only you need to have a good idea of where the price is about to move, but also
how far it is going to go.
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