7 Most Accurate and Profitable Candlestick Patterns for Binary Options and Forex Trading

The Best Candlestick Analysis Strategy For Trading Binary Options and

On this occasion we will discuss trading strategies, namely the way of candlestick analysis for binary options trading and forex.

Candlestick patterns are basically grouped into four, namely reversal patterns, continuation, consolidation and post consolidation.

What we will discuss this time is the candlestick pattern which has the highest accurate level.

Candlesticks have hundreds of patterns consisting of one candlestick to more than five candlesticks that form a pattern.


Following the systematics of technical analysis in general, each of these patterns has a different level of accuracy

Candlesticks have an alert level in the form of "signal" and "confirmation".

The level of "signal" means that the candlestick has formed a pattern that will show a move up or down, but traders have not been advised to place a position first.

The "confirmation" level means that the candlestick pattern has suggested that traders place a position following the direction of the movement in accordance with the pattern that appears.

All candlestick patterns have these "signal" and "confirmation" levels.

But specifically for the 6 candlestick patterns that we will study, the "signal" and "confirmation" are only limited to suggestions and can be ignored.

That is, when the 6 patterns appear, traders can feel calm to put up positions without having to wait for confirmation "again.

THE MOST ACCURATE AND PROFITABLE CANDLESTICK PATTERNS FOR BINARY OPTION AND FOREX TRADING


Here are 6 of the most accurate and profitable candlestick patterns for binary option trading and forex trading:

  • Bullish Engulfing
  • Piercing Line
  • Morning Star
  • Morning (Doji) Star
  • Three White Soldiers
  • Rising Three Method


Also read => Candlestick shapes and their meanin

Every candlestick pattern has a pair that shows the opposite direction.

Like the example in the Bullish Engulfing which informs the price movement will rise, and Bearish Engulfing which informs the price movement will decline.

The candlestick pattern we will learn is the candlestick with the ideal and best pattern. There is little tolerance in its use and does not have to be 100% the same in the conditions in this article.

It's just that, the fewer differences that exist in practice, of course the more valid and the more accurate the signal from the candlestick pattern.

Here's an explanation of the most profitable candlestick patterns:

1. Bullish Engulfing

In the form of a candlestick pattern, engulfing means the latest candlestick "hugging" the previous candlestick.

In Bullish Engulfing, the body candlestick 1 is between the body candlestick 2 (the shadow that appears in candlestick 1 does not need to be seen). That's why the term "hugging" appears.

The following are the ideal bullish engulfing pattern requirements:

  • It is better to occur at the bottom of the downtrend.
  • Body candlesticks 2 must cover or longer than the body of the candlestick 1
  • Open or close candlestick 1 must be under open or close candlestick 2
  • Open or close (one) candlestick 1 may be the same as open or close (one) candlestick 2
  • Candlestick 2 should be a long body candlestick
  • Candlesticks 1 and 2 must be of different colors
  • Candlesticks 2 must be white to indicate the uptrend that will occur
  • Candlestick 1 should be black because it matches the downtrend that is happening
  • It is recommended to wait for confirmation even if you don't have to. Place a CALL or BUY position if the price moves past the confirmation line.
  • The confirmation line is the open or close candlestick price before candlestick 1
  • Volume on candlestick 2 must be greater than the volume of candlestick 1


2. Piercing Line



In the form of a candlestick pattern, the Piercing Line means the latest candlestick "pierces" the previous candlestick. In this pattern, it is as if the candlestick 2 "pierced" candlestick 1.

Following are the ideal Piercing Line requirements:

  • Occurs in the bottom of the downtrend
  • Candlestick 1 and candlestick 2 are long body candlesticks
  • Candlestick 1 must be black (which indicates the price has dropped)
  • Candlestick 2 must be white (which indicates the price is going up)
  • Open candlestick 2 is below the lowest candlestick 1 (below the line a)
  • Close candlestick 2 passes at least half of the body candlestick 1 (above line b) but below the close of the candlestick 1 (below the confirmation line).
  • Confirmation not needed is only recommended.



3. Morning (Doji) star


In fact, this pattern consists of two patterns, namely Morning Star and Morning Doji Star. But because of the resemblance, I put this pattern together.

Morning (Doji) Star is like forming a "small star" that appears after a dark night (black / bearish candlestick) and then "small star" that makes the atmosphere bright (white / bullish candlestick).

Here are the ideal Morning (Doji) Star requirements:

  • Occurs in the bottom of the downtrend
  • The color of candlestick 1 must be black (which indicates the price has dropped)
  • Color 2 is free, but it will be more valid if it's white
  • Candlestick 3 colors must be white (which indicates price rises)
  • Candlesticks 1 and candlesticks 3 must be long body candlesticks
  • Candlestick 3 must have a body bigger than candlestick 1
  • Candlestick 2 must be a small body candlestick
  • Candlestick 2 must have a gap body with candlestick 1 (close candlestick 2 below and differ several points with close candlestick 1)
  • Open candlestick 3 close (either below or above) with close candlestick 1
  • Volume on candlestick 3 is greater or equal to volume of candlestick 2
  • Confirmation is actually not needed but you should wait for price movements to cross the confirmation line
  • The confirmation line is an open from candlestick 1


Especially for Morning Doji Star, candlestick 2 must be in the form of any doji.


There is no other striking difference that distinguishes Morning Star from the Morning Doji Star.


4.Three White Soldier


Three White Soldiers means three white / bullish candlesticks appear. This pattern is a pattern that shows a very bullish trend movement condition.

Here are the ideal ThreeWhite Soldiers conditions:

  • Occurs in the bottom of the downtrend
  • Candlestick 1,2,3 should be a long body candlestick
  • The size of candlesticks 1,2,3 should not differ much
  • Open candlestick 2 is below the close of candlestick 1 and close candlestick 2 is above the close of the candlestick 1
  • Open candlestick 3 is under close candlestick 2 and close candlestick 3 is above the close of candlestick 2
  • Confirmation is not needed, but you should install CALL or BUY when price movements cross the confirmation line
  • The confirmation line is a close candlestick 3
  • Increasingly the better the volume of candlesticks
5.Rising Three Methods


This pattern resembles a guardrail or a small black body bearish candlestick accompaniment that is escorted by white body bullish candlesticks on the right and left.

This pattern shows a very bullish price movement.

The following are the ideal Rising Three Methods conditions:
  •  Occurs when an uptrend
  • Candlestick 1 color must be white (which indicates an uptrend is happening)
  • The candlestick 2 color is free, but it's better if it's black (which indicates the price is down)
  • The candlestick 3 color must be white (indicating the price rises)
  • Candlesticks 1 and 3 must be long body candlesticks
  •  Candlestick 2 must be a small body candlestick
  • • Candlestick 2 should be a group (group) consisting of three small body candlesticks
  • A collection of candlesticks 2 is between (below) the highest and (above) lowest candlestick 1
  • Close candlestick 3 must be above the highets of candlestick 1
  • No need to confirm
  • the most important of candlestick analysis is the position of the candlestick pattern. "Position means the location of the emergence of the candlestick pattern.

The location can be on the bottom or the top. Determination of bottom and top is quite subjective.

In this article, except for Three White Soldiers and Rising Three Methods, all candlestick patterns are bullish reversal pattern.

This pattern is a pattern that shows an upward movement after a downward movement has occurred (because it is called a reversal or reversal).

While the Three White Soldiers and Rising Three Methods are classified as bullish continuation patterns. This pattern is a pattern of upward movement after the previous upward movement pattern has stopped.

Therefore, in using it for transactions, pay attention to the position of the candlestick pattern and see the movement of the previous movement before making your transaction decision.

Regarding up and down movements, in terms of technical analysis is called a trend.

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