One of the very essential facets of binary options program will be always to make use of candlestick technical investigation. With the assistance of this approach, you are going to have the ability to develop your opportunities calling moves of shares from the binary options industry.
Using candlestick binary options plans is beneficial in forecasting the near future movement of shares dependent on the effect of traders’ and speculators actions performed. As you know, the movement of an share can also be influenced by the trading behavior of financial traders.
For example, if a huge number of traders decide to sell an share, then the value of that share is expected to drop. If a huge number of people decide to purchase an share, then the value of the share will develop.
Using candlestick technical analysis traders will be able to predict the future movement of an share based on the overall marketplace sentiment and trader action on a particular share. Read the article down from in order to learn how this works exactly.
Note: The program described down from only works with brokers that have the required candlestick charts on their platforms. A great trading bot that is guaranteed to make you money and one that also uses candlesticks is VideForex. Bitcoin Trader is the hottest trading bot in 2018 because it focused on cryptocurrencies and only invests when the amounts are going up. When the amounts are going down it sells and waits for them to go up again.
Candlesticks are indicators in financial trading including binary options that will reveal the movement of certain shares based on the actions performed by traders during a particular moment in time. Imagine the following example:
– The value of an share is at $100 during a given moment.
– 1,000 people decide to sell the share bringing the cost down to $90
– 10,000 people decide to purchase the share increasing the final cost to $92 after a few minutes
– After further 30 minutes, the value of the share becomes $110 because of the high number of buys
Using normal charts, in the initial few minutes you would have only been able to notice that the value of the share has decreased dramatically. Seeing this, you would have most likely bet on the outcome that the value of the share would go on to decrease even further.
As such, you would have lost money in the example above after all the value actually recovered and reached an even higher value than the initial value.
What if there would be a method that would reveal you the ratio of people selling and the ratio of people purchasing the mentioned share? – If this would be possible, then you would have been able to see that a huge number of people decided to purchase after the cost dropped, meaning that the cost was expected to develop in the future.
This way after the drop from $100 to $90 you would have been able to tell that the cost would have INCREASED from here on rather than continued to decrease. You would have been able to buy the right binary options contract in this case.
Well, doing EXACTLY the thing mentioned in the above paragraph is actually possible using candlesticks in binary options.
In order to understand how this works, before all else you will have to know what a candlestick is made of. Below you will find the elements that make up a candlestick.
The real body
The real body or body of the candlestick is the rectangle in the middle of the candlestick. The length of this rectangle represents the size of the movement caused by trader action. For example, if the body is short, it means that the value of the share has only increased/decreased slightly. A long body denotes a large charge in the value of the share.
The shadows are the lines on top or on the bottom of the real body. The length of the line denoted the number of traders and trades that were necessary in order to determine the movement of an share.
For example, a very long line on top means that a very large number of traders have decided to purchase the given share. A long line on the bottom means that a large number of people have decided to sell the share.
Red vs. green
Each real body also has a color, most commonly either red or green. A red color means that the value of the share was decreasing. A green real body means that the value of an share has been increasing.
Some binary options brokers do not use the colors red or green in order to represent the direction of candlesticks. The most common alternative is white and black where white represents an develop while black represents a decrease.
The length of the real body
As hinted above, the length of a real body denoted the size of the develop or decrease in the value of the share. A long red real body means that the value of the share has decreased a lot in a very short time frame. A very long green real body means the opposite of this.
The length of the shadow
The length of the shadows denotes the number of traders and number of trades that were executed for a particular position. A very log shadow on top of the real body means that a lot of traders have bought the share in question.
A very long shadow on the bottom of the real body indicates that a of of traders have suddenly decided to sell the share in question.
Now that you know what candlesticks actually are in binary options and how to read them, we will reveal you how you can use them in order to predict the future movement of an share. There are basically two main strategies that work best.
The before all else program is called the shooting star program. This program can be used both in binary options and traditional forex or share trading as well. However, it’s most efficient in binary options trading.
The shooting star binary options program uses candlesticks in order to predict the decreasing of the value of the share in short term. In order to use this program you will have to look after a very short green or red read body as well as a very large lower shadow.
Let us explain what this means.
Imagine that the value of an share is continually increasing. Now, you suddenly notice a very small decrease (represented by a small red real body) or a drastically lower develop (represented by a very small green real body).
You also notice that the real body has a very (!) small or even non-existing upper shadow but a very long lower shadow.
This means the following:
– A very large number of traders (almost every trader trading at that moment) decided to sell the share in question.
This will lead to the following:
– The value of the share is expected to decrease and go on to decrease in the upcoming 30 minutes – 1 hour.
What you should do:
– Buy a binary options contract and invest a lot of money (or as many as you want) on the outcome that the value of the share will decrease in the next 5 minutes to 30 minutes.
The hanging man program is basically the opposite of the shooting start program in binary options trading. This program is used to predict the sudden upward change in the movement of shares.
However, this program is less accurate than the shooting star program. If you are a newcomer, then you should initially focus on the shooting star program only.
You will be able to use the hanging man binary options program during a session of trading when the value of an share is continually decreasing. In this case, if you notice a very short red or green real body and a very long upper shadow you can guess that the value of an share will begin to develop shortly.
Take this example:
The value of an share is continually decreasing. At some point you notice a very short real body and a very short or non-existing lower shadow as well as a very long upper shadow.
This means the following:
– A very large number of traders have decided to purchase the share in question.
This will lead to the following:
– The value of the share will highly likely develop.
What you should do:
– Invest in a binary options contract that predicts that the value of the underlying share will develop during the next 5 to 30 minutes.
And it’s this is how these binary options candlestick strategies work. Pretty simple, isn’Can it be?
Please bear in mind: All these only work on an binary options broker with the correct charting software to produce candlesticks. You want to be certain to just join in this type of broker. Non-USA traders may utilize 24Option while traders out of the USA may utilize Wynn Finance.
As possible have discovered previously, employing this specific binary options winning program isn’t so complicated afterall. It’s about seeing routines and behaving so. An extremely significant part understanding how to make use of this program would be always to try to remember the layouts of this candlesticks mentioned previously.
You will need to exercise just a bit trading using a demo account before you’ll have the ability to see these fad improvements triumphed by the candlesticks each of the time. But after having a few rounds of exercise that you ‘re place to move.
Likewise, you need to make use of the info which you learned here so as to earn all types of different forecasts too. Such as, as an instance, in the event the true human anatomy is quite short and also both upper and the shadow are of equal size and are rather large, in this scenario, the worth of the share is likely to stay constant.
There are likewise two considerations you’ll need to consider. The before all else is the binary options candlesticks won’t always obtain it right. In other words, it’s also likely than in the case you see a pattern like the ones mentioned above, the opposite of the expected outcome will happen.
However, most of the time these patterns are indeed capable of predicting the correct outcome. We’d say they are accurate around 75%-90% of the time. This is more than enough to generate a constant positive winning ratio.
The second consideration is that you can only use these strategies in order to predict the movement of an share on a short-term basis. By short term we mean everything in the middle 5 minutes to 1 hour. These strategies will not be accurate for long positions.
And this is all for this program guide. However, you are welcome to check out our additional guides and articles in order to learn more binary options winning tips and tricks. Have fun trading.
UPDATE: Does all this still seem too complicated for you? – You can also try out this binary options program for beginners before all else before you delve into advanced strategies.