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Tips and strategies how to read candlestick patterns are more easily and quickly

How to read a Candlestick Chart Analysis and IQ Option most readily?

How to use candlestick charts and read on the trading platform IQ option?

On the trading platform, there is usually a selection of charts, however the most widely used is the candlestick.

Not a few of those who are new to the forex binary trading or are confused with doing analysis using candlestick charts of price movement.

In fact, to read a candlestick is not enough to memorize and recognize formations candlestick formations only.

Already there are many books and pdf eBooks that refer lots of candlestick patterns complete with information and description to know or predict further price movement on a binary option trading and forex.

Whether to go up or down?

In fact, memorize myriad candlestick patterns do not also make significant differences in the performance of your trading. For example patterns:
  • Three black crows
  • Counseling baby swallows
  • Unique three river bottom 
 And much, much more. I think too much, it becomes difficult to remember and not practical.

Basically, you don't have to memorize all the candlestick patterns to be able to perform analysis of the candlestick.
 iq option candlestick analysis
We just need to know the big picture how to read candlestick, because every candlestick basically can already inform you of the following:
  • Pricing structure
  • Power trends
  • The dynamics of the buyer against the seller
  • Projection where the direction of movement of the next

How to read and analyze a candlestick without having to memorize?

To be able to read candlestick with ease, you should know the 4 basic elements candlestick:

  1. The size of the body of the candlestick
  2. The length of the tail of the candlestick
  3. Comparison of the length of the fuselage and the tail of the candlestick
  4. The position of the body of the candlestick
Before we discuss four important elements in the candlestick, we must have the correct perspective first.

There are two kinds of steps how to see the movement of the candlestick:


Step 1: war Candlestick

Let's just say the price movement that occurs due to the war between the Buyer and the Seller.

Each candlestick was a battle during the war, and the fourth element of the candlestick explains who's winning, who's resigned, who retained control, and which side has a greater chance to win the next battle.

Step 2: understand the context (the big picture) when Candlestick Analysis

Keep in mind, candlestick could not be observed in one pattern only, and need to know the dynamics of the previous price.

Candlestick analysis of noteworthy taking into account also the previous price movement.

Therefore, every time you try to read a candlestick, we must study the following:
  • is the latest candlestick smaller or larger than the preceding candlestick?
  • What changes the size has a meaning?
  • What changes occur during the trading session not active? For example, the candlestick on the currency pair EUR often runs low in the Asian session because the volume of trading is also small.
The above points it is important to note that we escape from the narrow thinking that limits the understanding of the description of the magnitude.

Next we can be free to 4 elements important to read candlestick.

4 important elements Candlestick to predict price movement


The following elements of candlestick analysis is the basis of trading binary options and forex:


1. The size of the body of the Candlestick

how to understand candlestick

 The size of the body of the candlestick is a good starting point because we can gain much information from him.
  • The length of the body of the candlestick shows the power of one party buyer or seller.
  • Elongated body Size means showing a rise momentum trend up or down.
  • At the candlestick body shrinks, which means that the momentum of the strength of the trend is weakening.
candlestick pattern continuation
 
In short, the length indicates how far the price has moved for the duration of the candle (candle per timeframe).

2. The length of the tail of the Candlestick

iq option candlestick best strategy


The length of the tail of the candlestick informs the volatility of price movement.

Long tail indicates that prices are moving quickly for the duration of the associated candlestick, but experiencing rejection because of resistance.

If the axis of the tail length was increased, it means increasing volatility. This often occurs at the end of a trend, before the price reverses direction, or when the price approaches a Support Resistance is important.

downtrend reversal candlestick pattern

3. Comparison of the length of the fuselage and the tail of the candlestick


strong reversal candlestick pattern

Start here we have got the big picture in reading candlestick.
  • Where a longer, body or tail of the candlestick?
  • At the trend with high momentum, you will often find the candlestick tail with long-body is smaller.
  • At a time when the market is experiencing uncertainty, volatility increases so that the body of the candlestick tapers out, but the tail of the candlestick.

4. The position of the body of the Candlestick

iq option candlestick analysis

 This element is the development of the previous element.
  • Do you find the candlestick tail length with body position was at one end? It showed resistance.
  • The Agency's position with the Candlestick in the middle of the tail under and upper tail indicates doubt/uncertainty of prices.
magic candlestick reversal pattern

By understanding all of the basic elements of candlestick on top, we can read a candlestick with no need to memorize the name of the form or one by one.

That's the tips and how to read candlestick easily on the trading platform IQ option.

That way you can analyze price movements without having to memorize the pattern candlestick patterns. May be useful.
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