The 7 Most Powerful and Profitable Candlestick Pattern

Binary option candlestick best strategy

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In this article, we will learn binary options trading analysis strategies as well as forex trading. Trading strategies that we will discuss are the trading strategy using candlestick patterns most accurate and profitable.

As we know candlestick patterns very much, but not all of the candlestick patterns that exist have the same degree of accuracy.

We will learn below are candlestick patterns that have the highest degree of accuracy.

To make it easier I'll explain in full in order for the new traders learn candlestick can understand it.

By studying the pattern of candlestick patterns most accurate it will help facilitate traders in taking decisions will choose CALL (Buy) or Put (Sell).

Basically on a binary options trading forex and we just need to predict where the next price movement.

Candlestick as one form of Price

Candlestick is included in part of the form of the price (price chart) which is used as a pointer in the price chart that is used to analyze a technical analyst. As for some form of price (price chart) are known up to now, among others, in addition to the candlestick is:
  • Bar Chart
  • Line Chart
  • Equivolume 
  • Point And Figure
iq option candlestick analysis

In General, the form of these prices is mere as tools for further analysis, such as by using a moving average, stochastic oscillator, trendline, or chart pattern.

However, each form has a price method of analysis that can stand on its own without the help of other methods. This can only be used by analysts who specialize in this type of analysis.

How to read a Candlestick 

Before we see the standard form of a candlestick, first we have to know there are four types of important price in trading forex binary option and the price type Empty is:
  1. Opening price (Open Price/Opening) 
  2. Closing price (Closing Price/Close) 
  3. Highest price (Highest Price/High) 
  4. Lowest price (the Lowest Price/Low) 

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A combination of the price of opening and closing prices form the body (body) candlestick.

Shadow or tail (tail) Candlestick was formed because there was a difference between the opening price and the closing price to the price or the highest and lowest prices or.

Opening price and closing price is differentiated by the colour candlestick. Because that's the colour of the granting of the candlestick is very important. Generally, the candlestick pattern wears black and white/red and green.

The basic pattern of the Candlestick pattern

Investment decision taken by looking at the forms – forms of candlestick happens.

That is to say, by looking at the shape of the candlestick, we can take a decision whether to choose open positions CALL or PUT on a binary options trading and open a Buy or Sell on the forex trading.

In this article, we will learn candlestick patterns which are very powerful and accurate in giving signals.
But the pattern requires at least two candlestick pattern that appears on it.

Each pattern, whether formed from one or more of the candlestick, generally has a name for easy recognition.
The name of the template (which is formed of a single candlestick) shown below image of this.
pin bar candlestick reversal pattern

most profitable candlestick pattern

We can add the word "bullish" for a candlestick is white and the words "bearish" for the black candlestick.
As an example, the "bullish small body." to the Body of the Small candlestick is white and "bearish candlestick" for Marubozu black Marubozu.

There is no firm line that distinguishes between small candlestick body with long body candlestick.

As does the shadow that occurs between the two patterns. Therefore, the decision of each trader distinguishes where small body and where the long body of the candlestick.

Keep in mind that we do not need to memorize the name of the candlestick. You just simply understand the psychology behind the candlestick.

6 most powerful Candlestick Pattern and accurately

Candlestick has hundreds of patterns that consist of a single candlestick right through to more than five candlestick that forms a pattern.

Follow the Systematics of technical analysis in General, each of these patterns has a different degree of accuracy.

Candlestick has a standby level of "signal" and "confirmation".

The level of "signal" means a candlestick that has formed a pattern that would indicate the movement up or down, but the trader has not recommended installing the position first.

The level of "confirmation" means the candlestick patterns already suggested traders put up the position following the direction of the movement that corresponds to the pattern that emerges.

All candlestick patterns have a level of "signal" and "confirmation".

But specifically for 6 candlestick patterns which we will learn, "signal" and "confirmation" that is merely limited to advice and can be ignored.

That is, when these patterns arise, 6 traders can already feel reassured to put up a position without having to wait for the confirmation "again.

The 6 Most powerful Candlestick Pattern

Here are the 6 most accurate candlestick patterns and favourable to the binary options trading and forex trading:

  1. Bullish Engulfing
  2. Piercing Line
  3. Morning Star
  4. Morning (Doji) Star
  5. Three White Soldiers
  6. Rising Three Methods

Each candlestick patterns have the companion that suggests the opposite direction.

As an example of a Bullish Engulfing that inform the price movement will rise, and Bearish Engulfing that inform the price movement will go down.

Candlestick patterns which we will learn is the candlestick pattern is ideal and best. There is little tolerance in its use and must not be 100% the same in the conditions in this article.

It's just that, the less difference there is in practice, of course, the more valid and more accurate signals from candlestick patterns.

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

1. Bullish Engulfing
bullish continuation candlestick pattern

In the form of candlestick patterns, engulfing candlestick means the latest "hug" the previous candlestick.

On a Bullish Engulfing candlestick, body 1 between candlestick body 2 (the shadow that appears on the candlestick 1 need not be seen). Because that's the term "hug" appeared.

Bullish engulfing pattern the following terms are ideal:
  • Should occur at the bottom of the movement of the downtrend.
  • Body candlestick 2 should cover or candlestick body longer than 1
  • Open or close candlestick 1 should be under open or close candlestick 2
  • Open or close (one) should equal 1 candlestick with open or close (one) candlestick 2
  • Candlestick 2 preferably is a long body candlestick
  • Candlestick 1 and 2 must be different colours
  • Candlestick 2 should be white to indicate an uptrend will happen
  • Candlestick 1 preferably black due in accordance with the downtrend is going
  • It is recommended to wait for the confirmation though doesn't have to be. Choose CALL or BUY position if the price movement over the line confirmation.
  • a confirmation Line is the price of open or close candlestick before candlestick 1
  • Volume on candlestick 2 must be greater than the volume 1 candlestick

2. Piercing Line
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In the form of candlestick patterns, Piercing Line means the latest candlestick "stab" the previous candlestick. In this pattern, as candlestick 2 "stab" candlestick 1.

Here are the terms – these terms of Piercing the ideal Line:
  • Occurs at the bottom of the downtrend
  • 1 Candlestick and candlestick 2 is a long body candlestick
  • Candlestick 1 must be black (which shows the price down)
  • Candlestick 2 should be white (which showed prices rose)
  • an Open candlestick 2 below from lowest candlestick 1 (below the line)
  • Close candlestick 2 least passes half of the candlestick body 1 (above the line b) but below the close of candlestick 1 (under the line of confirmation).
  • No Confirmation required just suggested.

3. Morning star (Doji) 

evening star candlestick reversal pattern
Indeed, this pattern consists of two patterns, i.e., the Morning Star and the Morning Doji Star. But due to the similarity, I unify this pattern into one.

Morning (Doji) Star as a "small-star" that appears after dark night (black/bearish candlestick) and then "small-star" that make the atmosphere into a brightly lit (white/bullish candlestick).

Here are the terms – these terms of Morning (Doji) Star ideal:
  • occurred in the bottom of the downtrend
  • Colour candlestick 1 must be black (which shows the price down)
  • Colour 2 is free but will be more valid if white
  • Colour candlestick 3 should be white (which shows the price rise)
  • 1 Candlestick and candlestick 3 should be long body candlestick
  • Candlestick 3 should have a larger body of candlestick 1
  • Candlestick 2 should be small candlestick body
  • Candlestick 2 should occur gap body with candlestick 1 (close candlestick 2 under different and some points with close candlestick 1)
  • an Open candlestick 3 close (either below or above) with close candlestick 1
  • Volume on candlestick 3 greater than or equal to the volume candlestick 2
  • Actual Confirmation is not required, however, we recommend that you wait for the price movement over the line confirmation
  • a confirmation Line is open from 1 candlestick

Specifically for Morning Doji Star candlestick, 2 must be shaped any doji.
candlestick pattern trend continuation

No other conspicuous difference that distinguishes the Morning Star with Morning Doji Star.

4. Three White Soldier
iq option candlestick strategy and analysis

Three White Soldiers meaningless appeared three white/bullish candlestick. This pattern is a pattern that indicates the condition of the movement a very bullish trend.

Here are the terms – these terms of three white ideal:
  • Soldiers occurred in the bottom of the downtrend
  • Candlestick 1, 2, 3 we recommend is the long body candlestick
  • Candlestick Size 1, 2, 3 should not very much
  • an Open candlestick 2 there under close candlestick 1 and 2 there is a candlestick close above the candlestick close 1
  • an Open candlestick 3 under close candlestick and candlestick close 2 3 above the candlestick close 2
  • Confirmation is not required, but we recommend that you install CALL or BUY when price movement over the line confirmation
  • a confirmation Line is close candlestick 3
  • increasing the volume the better the candlestick

5. Rising Three Methods
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This pattern resembles a guardrail or accompaniment of the small black body bearish candlestick escorted by long white body candlestick bullish on the right and left

This pattern indicates a very bullish price movement.

Here are the terms – these terms Rising Three Methods are ideal:
  • occurs when an uptrend
  • Color candlestick 1 should be white (which showed an uptrend is going on)
  • Colour candlestick 2 free, but better if it is black (which shows the price down)
  • Color candlestick 3 should be white (which shows the price rise)
  • Candlestick 1 and 3 must belong body candlestick
  • Candlestick 2 should be small candlestick body
  • Candlestick 2 should be a collection (Group) that consists of three small candlestick body
  • Set of 2 candlesticks (below) are among the highest and lowest candlestick (above) 1
  • Close candlestick 3 must be above the highest candlestick 1
  • no need to confirm

the most important of candlestick analysis is the position of the candlestick patterns. " Position means the layout appearance of candlestick patterns.
The layout can be on the bottom (base) or top (peak). Determination of the bottom and the top are quite subjective.
In this article, except for Three White Soldiers and Rising Three Methods, all candlestick patterns is the pattern of a bullish reversal pattern.
This pattern is a pattern that shows the movement of the movements occurred after boarded down (because it's called a reversal or inversion of the direction).
While the Three White Soldiers and Rising Three Methods considered bullish continuation pattern. This pattern is the pattern of movements rose after the previous ride stalled movement patterns.

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Therefore, in its use to Transact, note the position of the occurrence of the candlestick patterns and see the movement of the previous movement before taking a decision on your transaction.

About movement – movement up and down, in terms of technical analysis is referred to as the trend.
That's a discussion of how to analyze forex trading and binary options using candlestick patterns most accurate and profitable. Maybe useful.
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