Sunday, 8 July 2018

Candle Stick Pattern for Binary options

Reading price action means knowing what the market has done and what it is doing now. Armed with this knowledge, we increase our chances of predicting what the market will do. This is graphically represented in a bar chart called Candle.
A candle is a visual representation of price data in a given unit of time. Common time units include 5-minute, 30-minute, 1-hour, daily, and weekly.
We need four pieces of information to draw a price bar or candle.

1.        Open (O)
2.        High (H)
3.        Low (L)
4.        Close (C)

If the candle is a 5 minutes candle it means that it opened below and closed higher that is why it is green. But before the end of the five minutes, you see it reached a high  and a low that is called shadow.

If you had staked your money and predicted that the candle will go up in the 5 minutes your trade will be successful and you make money. If it goes down you loose. That is binary options for you.

Sometimes you will find out that the candle does not have a shadow. It also says something about the market but we shall not be interested in such parterns. We are only interested this form of candle below.

Well I will not bother you with the names of these candles but please mark the formation. They usually have long tails, it can be a doji or a pin bar. Our interest is that the long tails tells us to trade or not to trade. That is our basic technical analysis.


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