Saturday, May 30, 2020

What Is Three White Soldiers Candlestick Pattern? Meaning And How To Use

Three White Soldiers candlestick pattern is a special Japanese candle pattern. This is a good signal of the price at the beginning of a strong uptrend. Traders always pay attention to this 3 white soldiers candle pattern whenever it appears on the price chart.

In today’s article, I will give you a full overview of this pattern and how to use it in trading to have a higher winning rate.

Video on how to identify and use Three White Soldiers pattern

What is Three White Soldiers candlestick pattern?

In trading, 3 White Soldiers is the name for a Japanese candlestick pattern that reverses from falling to rising in price. This candlestick pattern often appears at the troughs of the market. It is a sharp bounce-back of prices after a long downtrend. This is a warning that the market will reverse and create an uptrend in the future.

What is Three White Soldiers?
What is Three White Soldiers?

Characteristics of the candlestick pattern

This normal candlestick pattern consists of 3 adjacent green candles satisfying 2 conditions as follows:

  • The opening and closing prices of the following candles must be higher than the previous ones.
  • The closing price of each candle must be close to the highest price (which means that the shadow of each candle is very small).

Types of Three White Soldiers candlestick patterns

On a Japanese candlestick chart, you can see different types of this pattern. As a signal, they all bring bullish signals in the future.

Types of 3 White Soldiers candlestick patterns
Types of 3 White Soldiers candlestick patterns

Where Three White Soldiers candlestick pattern appears

As mentioned at the beginning, the pattern usually appears at the intersection between a downtrend and an uptrend. This is a good signal for investors to open an UP order and do bottom fishing.

Where the pattern appears
Where the pattern appears

Or sometimes, this special signal may also appear when the price has already been in an uptrend. This represents the continuation of the uptrend.

Where the pattern appears
Where the pattern appears

How to trade Binary Option effectively with this pattern

Despite being a good signal of price reversals, experienced traders often combine this pattern with other indicators or signals to increase the safety of their orders. This is a good way to do bottom fishing if you know how to match them correctly.

Notes: The pattern is a bullish reversal signal. So this is a signal for you to open an UP order.

Combine with support/resistance zones

Let’s take a look at a popular combination of this candlestick pattern. It’s to use the Three White Soldiers candlestick pattern with Resistance and Support. In this trading strategy, levels act as special price zones. When the pattern appears in these zones, the probability of price increase will be very high.

Conditions: A 5-minute Japanese candlestick chart. Resistance/Support zones. Open orders with an expiration time of 15 minutes or above.

Trading formula:

+ Regarding Support zone: Open an UP order when the price falls into the Support zone, forming a Three White Soldiers candlestick pattern.

Combine with Support zone
Combine with Support zone

+ Regarding Resistance zone: Open an UP order when the price breaks out of the Resistance zone with a Three White Soldiers candlestick pattern. At that time, the Resistance zone becomes a Support zone.

Combine with Resistance zone
Combine with Resistance zone

Three White Soldiers is a highly accurate bullish candlestick pattern. The bigger the candles in the pattern are, the higher the accuracy becomes. You can use it to predict the market bottom.

Check out how to trade binary options with this special price signal on your DEMO account.

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Thursday, May 28, 2020

What Is Stochastic Oscillator Indicator? How To Use It In Binary Options

It is one of the most effective tools in predicting price trends. That’s how investors say about the Stochastic Oscillator indicator in technical analysis. So what is Stochastic indicator? How to use Stochastic divergence in transactions effectively? In today’s article, I will help you understand this.

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Video on using Stochastic indicator in Binary Options trading

What is Stochastic Oscillator indicator?

Stochastic Oscillator (aka Stochastic) is a momentum indicator comparing closing prices with a specific price range in a certain period of time.

Momentum is a quantity that precedes prices. That’s why Stochastic always gives users signals with very high accuracy. This is also the biggest advantage of this indicator.

Structure of Stochastic Oscillator
Structure of Stochastic Oscillator

This indicator consists of 2 main elements

The 1st element is a fixed line:

  • Upper line (green): Overbought zone (80).
  • Lower line (red): Oversold zone (20).

The 2nd element is a movable line:

  • Light blue line (%K): aka main line. It shows how the price reacts to the momentum.
  • Red line (%D): aka Stochastic’s moving average.

How does Stochastic Oscillator work?

In most cases, this indicator is for predicting price trends. The basic operating principle of Stochastic is that when prices change, the momentum must change accordingly.

Predicting price trends with Stochastic indicator
Predicting price trends with Stochastic indicator

Method 1. Using Stochastic basic signals to verify price trends

The Stochastic Oscillator ranges from 0 to 100. It takes 80 and 20 zones as overbought and oversold zones respectively.

When the indicator points up, it goes from the oversold zone (20) to the overbought zone (80). At the same time, the blue line (%K) stays above the red line (%D). The price is in an uptrend.

Predicting bullish price trends with Stochastic Oscillator
Predicting bullish price trends with Stochastic Oscillator

When the Stochastic indicator points down, it goes from the overbought zone (80) to the oversold zone (20). At the same time, the blue line (%K) falls below the red line (%D). The price is in a downtrend.

Predicting bearish price trends with Stochastic Oscillator
Predicting bearish price trends with Stochastic Oscillator

Method 2. Use Stochastic divergence to predict the possibility of future price reversals

Stochastic divergence is a phenomenon in which an indicator reacts against price behavior.

Details as follows:

Stochastic bullish divergences appear when prices are in a downtrend. The price creates 2 troughs of which the following trough is lower (or equal) to the previous trough. However, Stochastic signals an uptrend. After this signal, there will be an increase in the price.

Stochastic Oscillator bullish divergence

Stochastic bearish divergences appear when prices are in an uptrend. The price creates 2 peaks of which the following peak is higher (or equal) to the previous peak. However, Stochastic signals a downtrend. After this signal, there will be a decrease in the price.

Stochastic bearish divergence

How to trade with Stochastic Oscillator in details

The Stochastic Oscillator is a signal to predict price trends. So, the best way to use it in trading is in combination with specific signals to obtain correct entry points.

Combine with the Support/Resistance level

This combination relies on Support and Resistance as a specific price response.

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 15 minutes (time for a transaction is 15 minutes).

Stochastic formula:

Open an UP option as soon as the price bounces back higher when touching Support. At the same time, the Stochastic bullish divergence appears.

Stochastic Oscillator combines with Support and Resistance
Stochastic Oscillator combines with Support and Resistance

Open a DOWN option as soon as the price bounces back lower when touching Resistance. At the same time, the Stochastic bearish divergence appears.

Combine with Support and Resistance levels

Stochastic indicator combined with Heiken Ashi candlestick chart

The Heiken Ashi candlestick pattern is a special candlestick on the price chart. It very well suits for trendy trading. Therefore, when combined with the Stochastic indicator, it will give reliable entry points.

Conditions: The 5-minute Heiken Ashi candlestick chart. The expiration time of 15 minutes to 30 minutes.

Stochastic formula:

+ Open an UP option when the Heiken Ashi candlesticks turn from red to green. At the same time, the Stochastic indicator points up and the blue line (%K) crosses the red line (%D) from below.

+ Open a DOWN option when the Heiken Ashi candlesticks turn from green to red. At the same time, the Stochastic indicator points down and the blue line (%K) crosses the red line from above.

Stochastic indicator combined with Heiken Ashi candlestick chart
Stochastic indicator combined with Heiken Ashi candlestick chart

A few notes when using the Stochastic indicator in binary options trading

  • The Stochastic indicator is a trend prediction indicator. Therefore, do not use it as a confirmation signal. It is necessary to combine indicator signals with price action signals to get an accurate entry point.
  • Limit the use of the Stochastic indicator for short-term reversal trading.
  • When there are news impacts, the indicator’s signals will be less accurate. You should restrict trading at this time.

Finally, there are still many strategies to trade Binary Options on this site. However, you need to test them on your DEMO account for at least 2 weeks. This is how you check the exact probability of trading strategy using the Stochastic indicator.

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Wednesday, May 27, 2020

What is RSI? How to trade effectively with RSI indicator

The Relative Strength Index (RSI) is the most powerful technical analysis indicator in price action analysis for traders. Today, I will introduce you to RSI indicator, its divergence, formula and how to use it in binary options trading.

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Video on binary options trading using RSI indicator

What is RSI indicator?

RSI indicator stands for the Relative Strength Index. It is used as an oscillator indicator to measure the speed and change of price movements. RSI ranges from 0 to 100 to measure overbought and oversold of the market. In analyzing, using RSI can help you identify reversal points at peaks and troughs of price trends.

What is RSI indicator?
What is RSI indicator?

The RSI indicator consists of 3 main elements.

  • RSI line (light blue) is the line that runs along with the price chart, indicating the change and speed of price movements. Usually, this line ranges from 30 to 70. But sometimes it touches or breaks out of the 30 or 70.
  • The overbought zone (from the overbought line (70) and above) is the zone to which the RSI reaches signaling that the price has gone up too high. This is a signal that predicts a temporary reversal from up to down.
  • The oversold zone (from the oversold line (30) and below) is the zone to which the RSI reaches signaling that the price has fallen too low. It predicts that prices will temporarily reverse from down to up.

How to use RSI indicator

Method 1. Used to identify price trends

This is the basic signal for RSI. As observed, when the RSI rises and moves from the oversold zone (30) to the overbought zone (70), the price goes up. And vice versa, when it heads down and goes from the overbought zone (70) to the oversold zone (30), the price is in a downtrend.

How to use RSI indicator
How to use RSI indicator

Method 2. Predicting a price reversal based on the RSI indicator divergence

Divergence is one of the most accurate characteristics of RSI indicator. It shows through the opposite reaction of this indicator compared to the direction of the price.

RSI indicator divergence
RSI indicator divergence

For example,

RSI bullish divergence:

The price is in a downtrend, creating 2 consecutive troughs. The following trough is lower than the previous one but the RSI is rising. This is a very reliable signal for you to predict the price will reverse from falling to rising.

RSI bullish divergence

RSI bearish divergence:

The price is in an uptrend, creating 2 consecutive peaks. The following peak is higher than the previous one but the RSI is falling. After this divergence, there will be a downtrend.

RSI bearish divergence

Two methods for trading binary options using RSI indicator formula

Method 1. Trading using RSI divergence

This method purely uses the RSI because you only need to observe it for opening options. At the same time, you can use the 2 support and resistance lines for identifying entry points

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 15 minutes (time for a transaction is 15 minutes).

How to open an option

+ Open an UP option right after the RSI bullish divergence appears. The price touches the support and bounces back higher.

How to trade binary options with RSI indicator formula
How to trade binary options with RSI indicator formula

+ Open a DOWN option right after the RSI bearish divergence appears. The price touches the resistance and bounces back lower.

How to trade binary options with RSI indicator formula

Method 2. Combining with the Heiken Ashi candlestick chart

This combination uses the trend signal of RSI combined with Heiken Ashi candlestick. This is a very effective candlestick in trend trading.

Conditions: The 5-minute Heiken Ashi candlestick chart. The expiration time of 15 minutes to 30 minutes.

How to open an option

Open an UP option when Heiken Ashi candlesticks turn from red to green and the RSI heads up from the oversold zone (RSI crosses the 30 line and goes up)

Trading strategy using RSI combined with Heiken Ashi candlestick chart
Trading strategy using RSI combined with Heiken Ashi candlestick chart

Open a DOWN option when Heiken Ashi candlesticks turn from green to red and the RSI heads down from the overbought zone (RSI crosses the 70 line and goes down)

Trading strategy using RSI combined with Heiken Ashi candlestick chart

Notes when using RSI indicator in binary options trading

  • Do not use the RSI indicator to confirm the entry point. All indicators go after the price. Therefore, there is always a certain lag from the indicator compared to the price.
  • The RSI is best used when combined with signals from candlesticks and candlestick patterns.
  • Do not trade with a short expiration time of fewer than 5 minutes.

Using RSI is a skill you need to pocket on your options trading journey. This is an indicator used a lot by successful traders. Experience and familiarize yourself with RSI on a demo account. I wish you successful transactions.

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Tuesday, May 26, 2020

What is MACD? How to trade effectively with MACD indicator

One of the most classic sayings in technical analysis is “The trend is your friend”. All you need to do during trading is to identify market trends. From there, every action of opening options gives the highest probability of winning. That’s why today we will learn about MACD indicator.

MACD is one of the simplest indicators for you to identify price trends. In this article, I will make the MACD line simple. At the same time, I will show you 2 trading combinations using MACD.

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Video on using MACD to trade Binary Options

What is MACD?

MACD stands for Moving Average Convergence Divergence. It was created by a technical analyst named Gerald Appel from the 1970s. MACD helps you figure out which trend the price is in. It also helps you identify when the trend ends, reverses, or converts to a new one.

What is MACD?
What is MACD?

The MACD indicator consists of three main elements.

– MACD (MACD line – dark blue line): is the combination of the EMA12 – EMA26, which shows the price development trend.

– Signal (Signal line – orange line): is the EMA9, used to track the price trend.

 Histogram column: is for measuring the degree of convergence/divergence between two moving averages. It shows whether the speed of price change at the given time is fast or slow.

How to use MACD indicator

Method 1: Predicting price trends accurately using MACD

This is the convergence characteristic of the MACD indicator. It means that the direction of MACD is the direction of price.

(i) When the MACD line crosses the Signal line from below (the blue line intersects the orange line from the bottom) => The price is trending up. Histogram columns will point up.

Predicting price trends with MACD
Predicting price trends with MACD

(ii) When the MACD line crosses the Signal line from above (the blue line intersects the orange line from the top) => The price is trending down. Histogram columns will head down.

Predicting price trends with MACD indicator
Predicting price trends with MACD indicator

Method 2: Predicting the possibility of reversal using MACD divergence

Another characteristic of MACD is divergence. You need to identify the divergence of the MACD line. From there, you can forecast the possibility of price reversal.

This is a typical example of MACD divergence.

(A) The price is in downtrend => (B) There is a divergence between price and MACD indicator (The price is falling but the MACD line is rising) => (C) Soon after, the price reverses from down to up.

Positive divergence of MACD indicator
Positive divergence of MACD indicator

Two trading combinations using MACD

Notes: MACD is a trend indicator. Therefore, the best way to trade is to combine MACD with other trend indicators.

Do not use MACD to open options against the trend.

Method 1: MACD indicator combined with Support/Resistance

Using MACD with Support and Resistance is a strategy with very high accuracy in binary options trading.

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 15 minutes (time for a transaction is 15 minutes).

MACD indicator combined with Support/Resistance

How to open an option:

+ Open an UP option: The price breaks out of the resistance and goes up. At the same time, the MACD line crosses the Signal line from below (the blue line intersects the orange line from the bottom)

Explanation: When the price breaks out of the resistance, the market will enter an uptrend. Besides, MACD also gives bullish signal => This is when you can confidently open an UP option.

+ Open a DOWN option: The price falls out of the support and goes down. At the same time, the MACD line crosses the Signal line from above (the blue line intersects the orange line from the top)

Method 2: MACD indicator combined with Heiken Ashi candlestick chart

Heiken Ashi candlestick chart is a very special candlestick pattern. It indicates exactly whether the price is in an uptrend or a downtrend.

When the green candles line up consecutively => The market goes up. Conversely, when the red candles line up consecutively => The market goes down.

Conditions: The 5-minute Heiken Ashi candlestick chart. The expiration time of 15 minutes to 30 minutes.

MACD combined with Heiken Ashi candlestick chart

How to open an option:

+ Open an UP option: Heiken Ashi candlesticks pattern shows a series of consecutive green candles. At the same time, the MACD line crosses the Signal line from below (the blue line intersects the orange line from the bottom)

Explanation: These are two signs signaling that the price is in an uptrend. Therefore, opening an UP option will be extremely safe.

+ Open a DOWN option: Heiken Ashi candlesticks pattern shows a series of consecutive red candles. The MACD line crosses the Signal line from above (the blue line intersects the orange line from the top)

A few notes when using the MACD indicator to trade binary options

– A long expiration time is better than a short one (The expiration time of 15 minutes or more will be better than that of 5 minutes). MACD is a trend indicator. Regarding trendy trading, it’s best to choose a long expiration time.

Using MACD to trade binary options
Using MACD to trade binary options

– Do not use the MACD indicator only to determine entry points. Because sometimes MACD will not give clear signals.

– Please remember: Do not trade against the trend. MACD is to identify trends and we trade trendily. Never go against the trend.

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Monday, May 25, 2020

What Is Resistance And Support? How To Trade In The Safest Way

Resistance or support is a basic indicator that all binary options traders need to know. Although this is a simple indicator, its performance is great. Join me to learn more about resistance and support to know why it is trusted by traders around the world.

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What is Support and Resistance?

Support is the price level (zone) where traders expect the price to bounce back higher. Here, the bulls dominate the bears. Most traders will open UP options when the price enters the support zone.

Resistance is the price level (zone) where investors expect prices to fall lower. In this zone, the bears are in control of the bulls. Most investors will open DOWN options when the price enters the resistance zone.

What is Support and Resistance?
What is Support and Resistance?

Principles of Support and Resistance

Support and resistance are price zones, not specific prices. That’s why many traders misidentify them. Since then, they might give incorrect trading decisions in Binary Options.

Principles of Support and Resistance
Principles of Support and Resistance

Strong support is the zone where prices cannot get through to continue to decline after touching many times.

Strong resistance is the zone where prices cannot break through to continue to increase after many times of entering.

What is Break Out and Retest?

Break out is when the price breaks out of the resistance to continue rising or breaks out of the support to decrease lower.

Retest means after breaking out, the price returns to the level it just passed to test again.

For example,

The price breaks out of the resistance zone to continue rising, then it retests the zone it has just broken out of. Here is a very safe entry point following the break out price trend. According to normal price action, the retest point is likely to gain momentum for the next powerful bounce.

The price breaks out of the resistance zone and then returns to retest that zone
The price breaks out of the resistance zone and then returns to retest that zone

Conversely, the price breaks out of the support zone and then returns to retest that zone.

The price breaks out of the support zone and then returns to retest that zone
The price breaks out of the support zone and then returns to retest that zone

Resistance will become support when the price breaks out and retests. This is called the transition zone between Support and Resistance.

The broken resistance zone converts to a support zone
The broken resistance zone converts to a support zone

Specific examples when the price breakouts and returns to retest

When the price of the EUR/USD pair failed to fall below the lowest low, it formed a support zone. After many times of touching, the price broke out of the support zone. It then returned to retest the level it had just broken out of and prepared for a clear downtrend.

The price broke out and retested the support zone

The resistance appeared when the price failed to surpass the highest peak of the GPB/USD pair. And the next time it touched the resistance zone, it successfully broke out. Prices then returned to retested the level it had just broken to form an uptrend.

The price broke out and retested the resistance zone

How to trade binary options with Support and Resistance

For accurate binary options trading with support and resistance, you should identify them correctly. Then redraw with the graphical tools available on the chart to get a better look.

How to open a binary option in the support zone

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 5 minutes.

Open an UP option: The price breaks out of the resistance zone and retests that resistance which has converted into support.

Explanation: The price breaks out of the resistance zone and begins to retest the level just passed. Right at that point, it is the safest entry point following the trend of the Break Out price.

How to open a binary option in the support zone
How to open a binary option in the support zone

How to open a binary option in the resistance zone

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 5 minutes.

Open a DOWN option: The price breaks out of the support zone and returns to retest the level which has converted into resistance.

Explanation: The price breaks out of the support zone and begins to retest the level just passed. At that point, it is reasonable to open a DOWN option following the Break Out trend.

How to open a binary option in the resistance zone
How to open a binary option in the resistance zone

How to open a binary option at the support zone combined with RSI indicator

Conditions: A 5-minute Japanese candlestick chart. The expiration time of 5 minutes.

Open an UP option: The price enters the support zone, and the bullish RSI divergence appears.

Explanation: When the price enters the support zone, there is a high probability that the price cannot continue to decline. At that time, the bullish RSI divergence indicator appears, signaling an imminent price increase.

How to open an UP option when combining RSI indicator with support

Things to note about Support and Resistance

– Support and Resistance are stronger when prices often react there.

– Support becomes resistance after being broken out and vice versa.

– When support is broken, a downtrend usually appears right after the price retests.

– When resistance is broken, an uptrend will show up when the price retests and creates momentum to continue the trend.

– Combine with candlestick pattern at resistance and support to increase accuracy.

– Do not use the support or resistance level when there is news of strong fluctuations in the price that is out of control.

So I have introduced you to resistance and support. They are the most basic indicators in Binary Options trading. Familiarize yourself with trading using these levels. Simultaneously, combine them with high accuracy candlestick patterns to increase the winning rate to the highest.

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Saturday, May 23, 2020

How To Deposit IQ Option With Neteller (updated 05/2020)

For big brokers like IQ Option, there are a lot of traders in many countries around the world. That’s why IQ Option provides plenty of payment methods to help traders feel convenient when depositing and withdrawing money. This article will guide you to deposit your IQ Option account with Neteller in the most detailed way.

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Video shows how to deposit IQ Option with Neteller

How to top up IQ Option account with Neteller

Log into your IQ Option account

Log into your account and select “Deposit” to add money to your account.

How to deposit IQ Option account
How to deposit IQ Option account

Choose Neteller as the deposit method

Choose Neteller as the method to deposit IQ Option. Then select the available deposit amount or manually enter the amount you want to top up in the “Amount” box.

Finally, confirm the amount by clicking “Proceed to Payment”.

Recharge IQ Option account with Neteller e-wallet
Recharge IQ Option account with Neteller e-wallet

Fill in your Neteller account information

After the above step, the system will tell you to fill in Neteller wallet information and the 6-digit security ID.

When completed, click “Proceed to Payment”.

Enter your Neteller account and secure ID
Enter your Neteller account and secure ID

Successful IQ Option deposit confirmation

IQ Option will process the deposit request from 1 – 3 minutes. When completing, the system will notify you that the deposit has been successful.

Click on “Trade now” to return to the main screen to start trading.

Successful IQ Option deposit confirmation
Successful IQ Option deposit confirmation

Check your account balance

When completing the above steps, you should check your account balance before trading. If the money has not been deposited in 5 – 10 minutes, please contact IQ Option support to solve your problem.

Check your IQ Option account balance
Check your IQ Option account balance

At the same time, Neteller also sends you a notification email.

Email notification from Neteller
Email notification from Neteller

If an error occurs during the deposit process but you don’t know how to deal with it, please contact us for assistance by comment below. Thank you for reading this article.

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