Technical analysis indicators provide a stable profit on binary options. Beginners tend to put them on the schedule as much as possible forgetting the principle of "a lot of information is not always good." You can trade without them at all using candlestick analysis.
The methodology was developed in Japan and for 2.6 centuries has not changed significantly to date. Includes more than 200 patterns, but the strategy uses only two of them, which can be immediately applied in trading even to binary options for newbies.
The picture shows the structure of a candle. The strategy does not use “shadows”, opening point of option is determined by the size of the “body”.
The first pattern showing trend reversal will be "Bullish / Bearish engulfing" - the body of the current candle completely closes the body of the previous one. We open the option at the opening of the third candle.
The second candle is inverse colour. An exception is for very small first bodies similar to «Doji».
The next «Doji» pattern. The strongest reversal signal and highlighted in a separate section of candle analysis. The basic rule - the less often there is a candle «Doji» the more important it is. In the classic «Doji», the closing price is equal to the closing price +/- several ticks. The option opens on the third candle after the appearance of "Doji".
In any case, such candles (even if false) require a binary options trader special attention; otherwise, you can get a big loss from a sharp trend change!
Candles cannot be the only decision making a factor. Patterns indicate only the probability that the market will reverse or continue the current trend. Additional confirmation will be vfxAlert binary option trading signals working on technical indicators.
Open a trade on the next candle after binary signals. Time of expiration of options has to be not less than 5-7 minutes even if as a working timeframe it is chosen of minute, as in our video.
Recommendations about use …
Let's summarize. Candlestick analysis will be relevant for at least another 10-20 years, despite the growth in the use of AI and HFT in trading. Most stock transactions are still made by people, which mean that its principles will continue to work and make a profit binary options signal.