The bullish engulfing pattern in the candlestick chart shows a downtrend. That means there is a rise in the buying pattern in the market. Two green candles represent it. The second green candle swallows up the body of the previous red candle. The bearish engulfing pattern is the opposite of the bullish engulfing pattern. This pattern occurs when the price of the asset falls as more sellers are entering the market. This pattern is represented by two red candles where the red candle engulfs the next green candle.

When you notice a bearish or bullish pattern, this means there will be a reversal in the trend. If traders hold a position on an asset whose price trend is about to end, they can use this pattern to exit the trending market. The morning star and evening star pattern are slightly different from the bullish engulfing and bearish engulfing pattern as it includes three candles rather than two.

Morning star pattern can be defined as the visual representation of three candles that form a downtrend. The presence of a morning star in the candlestick chart indicates the price trend is going to reverse.

The evening star pattern in the candlestick chart is the exact opposite of the morning star pattern. It represents an uptrend in the market. Evening star patterns also tell about the future price reversal of an asset. This pattern generally appears when the market is showing either higher lows or higher highs. If you want to trade the Evening Star candlestick pattern, do not wait for prices to drop down, as you might lose the trade.

A piercing pattern is formed during pullback or at the end of the downtrend. It is further divided into two categories, i. This pattern can be found in the chart when the second candle, i. This situation arises in the downtrend market. With the right information, you can correctly speculate the market and make a winning trade. To become a successful trader, you can pick the right candlestick pattern, stick to a detailed strategy , and never stop learning.

For further reading, you can also read our ABCD pattern guide for Binary Options or Harmonic Pattern guide. Show all posts. Write a comment abort. Save my name, email, and website in this browser for the next time I comment. Binary Options Martingale strategy explained. How to trade false breakouts with Binary Options. The best 5-minute Binary Options strategies. Binary Options correlation coefficient strategy. How to trade lower highs with Binary Options. We need your consent before you can continue on our website.

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Privacy Policy. Learn more Load video Always unblock YouTube. What you will read in this Post. Best binary broker:. Quotex - Trade with high profits 1 2 3 4 5 5. Accepts international clients Min. Risk warning: Your capital can be at risk. Bullish Pattern. Bearish Pattern. Fake breakout trading. Trenline trading. Bullish and Bearish evening Star. Percival Knight. I am an experienced Binary Options trader for more than 10 years. Mainly, I trade 60 second-trades at a very high hit rate.

I agree to the data protection conditions. More information in the Privacy Policy. October, September, August, June, So all of this goes into the equation. The best thing to do is to have several strategies, and understand how the market works, in order to choose the best one to the present market conditions and time od the day. On this site, you will find several strategies to use in Binary Options.

We also have courses that complement the strategies. I think most of the readers who will read this article are because they are beginners in Binary Options.

For this reason, I will only address some strategies, and try to explain as simple as possible. I see that some sites speak of dozens of strategies, using 3, 4 and 5 indicators for each.

I, being a trader for several years, I have difficulty understanding, I imagine someone who is a beginner in Binary Options …. Thus, the idea is to approach the main strategies of Binary Options in a simple way to understand and with few indicators, so that it is relatively easy for a beginner to understand and start practising.

If, after understanding how to negotiate, you want to move to more technical and complicated situations is up to you.

I am of the opinion that sometimes the simplest is what gives us better results, as long as we do it the right way. Rule number one of the Binary Options Strategies — none of the Strategies that exist are infallible.

Neither is bad… well, some are even more than bad, they are awful. Usually, people like to test the Binary Options Strategies with demo accounts and then use real accounts. Many websites advise you to always test yourself in Demo Accounts, and only after seeing results work with a real account. I do so because when we test in Demo we are not afraid to lose because there is no real money involved, so we end up making decisions that will be different when we do it in real mode.

Therefore, many traders have good results in Demo and then in Real Accounts that does not happen. However, both situations test in Real Account or Demo Account have their advantages and disadvantages. It should be you choosing the best method to learn. When choosing a strategy you should exploit it to the fullest to become an expert and be able to make money.

It is important to realize that there are days when a certain strategy does not work because the market is not acting in a coherent way. These days it is better not to negotiate. Normally after 3 missed deals, the ideal is to stop and return the next day.

If the situation repeats, you should try another asset or use a different type of time interval that you were using with this binary options strategy. It is a strategy that works for 2 minute expiration time, and one of my favorite strategies to trade Turbo Options or 60 second Options.

Learn more about the Strategy ITM. This Simple strategy works with few indicators and suitable for beginners who are still learning. Please note: This strategy was publicly published in the trading community and is free to use. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy. The Binary Options Strategy 5 candles reversal For MT4 is based on a different approach.

Typically we will be using the 5 candles as part of the consolidation pattern. FREE Binary Options Strategy 5 candles reversal Download the FREE Binary Options Strategy 5 candles reversal for MT4. I'm Mike Semlitsch the owner of PerfectTrendSystem. My trading career started in

by TradingStrategyGuides Aug 8, All Strategies , Options Trading Strategies 21 comments. Today we are going to share our binary options trading strategy with you. This is where our Trading Strategy Guides team comes to the rescue. We will provide you with the best binary options strategy. Understanding how to trade options can help increase your performance as a trader. At the same time, binary options also allow us to make more money in the process.

We are also controlling the risk. Binary options are easy to understand. This is coming from someone who has little or no experience in the area. If your favorite approach to trading forex is to jump in on a fast price movement and ride the intraday trend for as long as the momentum lasts, you can learn how to make money trading binary options very quickly.

When we first discovered binaries, the light bulb in our heads turned on. No need to worry about how many pips we could grasp in the process. Binary options trading is a form of derivatives trading that has a fixed profit or loss. Trading binary options is simple. All you need to do is ask yourself a simple yes or no question.

Will the price of the underlying asset be worth more than the strike price at the expiration date? Essentially, we can trade binary options for any type of instrument. Second, before submitting our trades, each of these instruments has a current value at any given point in time. How to trade binary options depends on our trading skills.

It is used to predict where the current value will be some time in the future. In other words, we must use our skills to predict the market direction.

This will determine our success in trading binary options. The market can only go up or down. If we believe the current value will go up in the near future, then we buy a Call option. On the other hand, if we believe the current value will go down in the near future, we buy a Put option.

Read more about call options vs put options. Third, we need to determine what the most critical aspect of trading binary options is. Being wrong means you incur a loss. We have made a nice infographic that highlights the four steps on how to master binary options trading. If you manage to figure this out, then knowing how to make money trading binary options will be a piece of cake for you.

Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. The mathematical model behind this binary options trading strategy has a proven market edge.

The only tool you need to trade binary options successfully is the RSI indicator. The RSI default settings need a little bit of adjustment if you want to master the 1 minute time frame. We use a 3-period RSI to trade binary options profitably. Naturally, a lower RSI period means that the indicator will tend to be noisier than normal. But it is more responsive to the immediate price action. Along with the RSI settings adjustments, we also played around with the overbought and oversold readings.

We found out that by using an 80 RSI reading for overbought and 20 RSI reading for oversold conditions, we get more accurate day trading signals. By changing the RSI overbought and oversold line, we have eliminated the noise. The 1-minute binary options or the seconds time frame is the best chart for trading binary options.

In other words, the best binary options expiration time is the 60 seconds time frame. We recommend highlighting the starting point on your charts.

And the ending point of your candle low that you have identified. Simply draw two vertical lines on your chart through the starting point and ending point of your 50 candle low. When you count the 50 candle low, you should always start from the current candle.

Then go from the right side of your chart to the left side of your chart. If you manage to count 50 candle low, obviously the starting candle point will be your 50 candle low. Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. An RSI reading below 20 shows that the market is in oversold territory and it can potentially reverse. Keep in mind that in order to move to the next step, we need the 50 candle low.

We also need an RSI reading below 20 to happen at the same time. We added one more factor of confluence that needs to be satisfied. If used in conjunction with the previous two conditions, it will make you a money maker binary options trader.

When trading reversals, you need to be as precise as possible. The more confluence factors you have in your favor the more accurate the reversal signal is. What we need to see here is for the price to continue moving lower after the 50 candle low was identified.

At the same time, we need the RSI indicator to move higher in the opposite direction. If the price moves in one direction and the momentum indicator moves in the opposite direction, it means they are diverging from each other. This signals a potential reversal signal. The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line. The first candlestick formation that breaks above this high is your trade entry signal to buy a second Call option.

Before learning how to make money trading binary options you need a great Binary Options broker. Secondly, you need a strategy-based trading technique to reveal the market direction. You only need to forecast if the price will be up or down during the next 60 seconds, making it very convenient. We use a heuristic approach to speculate on which way the price is going to move during the next 60 seconds. At the end of the day, traders are looking for a reliable binary options system that will help them make money from trading.

The good news is that the best binary options strategy is exactly that system. Our team is built of many traders with experience in the industry, including binary options traders who know how to make winning trades. Please Share this Trading Strategy Below and keep it for your own personal use!

Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow.

The article on binary option trading strategy was useful. Thanks sharing for valuable information about binary options. Thanks for the article. Are you referring to building a strategy multi-step indicators in a trading platform?

Does the starting point and ending point of your 50 candle low have to be the same color candlestick too? You from tradingstrategyguides, could you create an indicator with these settings for us binary traders. That way we would be better able to migrate to Forex. remembering that I am a loyal customer of yours and I pray that one day you can help us with this. And thank you so much for that knowledge. Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

Binary Options Trading Strategy — Best Seconds Strategies by TradingStrategyGuides Aug 8, All Strategies , Options Trading Strategies 21 comments. And that, my friends, is the real beauty of binary options. What are Binary Options? So, the first thing you need to decide upon is to select the asset to trade.

Trading binary options require you to correctly forecast two things: Whether the market will rise or fall.

Your forecast needs to be accurate during a certain time frame — called the expiration time. The Best Binary Options Strategy Our team at Trading Strategy Guides is ready to share with our beloved trading community our second binary options strategy. Use the second chart 1 Minute TF The 1-minute binary options or the seconds time frame is the best chart for trading binary options.

See below: Step 2: At the moment the 50 candle low develops, we need an RSI reading of 20 or below Since this is a reversal trading strategy we need the RSI indicator to show a bullish reversal signal. See below: Step 3: Look for a bullish divergence to develop between the RSI indicator and the price.

See below: Step 4: Buy a Call Option after the first candle that closes above the high of the 50 candle low The first thing you need to do is to mark on your chart the high of the 50 candles low with a horizontal line.

If you want to buy Put binary options, use the same binary options guide, but in reverse. See below: Conclusion — Binary Options Trading Strategy Before learning how to make money trading binary options you need a great Binary Options broker.

Thank you for reading!

When you trade a ladder option with an expiry of one hour based on a price chart with a period of 5 minutes, so many things can change before your option expires that the Bollinger Bands become almost meaningless. As the name suggests, this strategy uses the movement of asset prices in the last twenty days. Some percentage of the money lost will go to the broker. Every cycle of a trend consists of two swings: one upswing and one downswing. A candlestick chart is made of two different elements, i. Particularly for less experienced traders.

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