THE BASICS OF FOREX AND BINARY TRADING: BASIC CANDLE STICK PATTERNS

This blog is build by fans of the platform. Not IQ Option.

Hello! Today I'm gonna discuss to you some candle stick patterns that can help you in finding a good entry in trading. Maybe you are using these patterns now in your trading but it might not as helpful as it should be. Yes, there are some fake signals involving candle stick patterns mostly in binary trading mostly if you are using small time frames like 5s, 10s, and 15s candle stick time frame. I would like to show you an example below.

The perfect hammer seems to be a continuous uptrend because it is a bullish signal. It is recommended to wait for a confirmation on other tools if you are using like MACD, Stochastic Oscillator or RSI to be able to distinguish fake candle stick pattern in the market.. Wait for the next candle to appear before entering a trade. There are so many fake candle stick patterns in binary trading, so beware to enter any trade without having a confirmation tool available in your platform. Learn to use them profitably not by using them for luck because little knowledge is dangerous mostly if you are dealing with binary options. One simple way to identify the direction of the trend is to wait for the next candle to appear.

Anyway, candle stick patterns are helpful to find better entry point as long as you know how to use them properly. It has been used mostly by many traders like me mostly when breakout is coming. It is my best position to trade break outs and enter a trade with some bigger amounts because i know possibly where is the direction of the trend. Say for instance, the trend is a side way uptrend for a long time and I saw a Bearish big candle developing, I'll wait for the next candle if it is a bear candle and my EMAs are meeting towards each other like the low EMA crossing the higher EMA and also the RSI is over the 75 line of oversold, so with the MACD line is crossing, then it's confirmed to enter for a short position. See the image below how to confirm a going downtrend market.

It really takes time to spot a good entry, but it is wise to do so for having a profitable trade. In the images below you will find different candle stick patterns that will help you to find entry spots in binary and forex trading.

BUY OR BULLISH CANDLE STICK PATTERNS

SELL OR BEARISH CANDLE STICK PATTERNS

So, even you see these candle stick patterns in your chart, be diligent enough to verify your point of entry, wait for another confirmation before placing a trade.

I hope you find it helpful to you in your trading. If you don't have an account yet then click the button below to create an account.