The actions of the participants in stock trade are due to the impact of certain factors, both external and internal. The actions of traders are influenced by specific patterns, the analysis of which allows you to predict the future price movement. However, this is a serious problem: there are quite a lot of factors, the impact of which changes the direction of the trend. And not all of them are interpretation.
At the same time, figures are often formed on the trading schedule, to work with which simply. These include the "Candles" pattern, on the basis of which you can build a further strategy of behavior.
Features Strategy
As part of the strategy built on the basis of the "Three Candles" figures, you can use any timeframe. It is recommended to use major currency pairs, set the expiration time on one candle and trade at the time when the American or European session is open.
The "three candles" pattern is formed in a place where two trends are connected. Outwardly, it looks like a fractal. The pattern is a combination of three candles, where the maximum and minimum purchase prices for medium are located below similar points of neighboring figures. In addition, this pattern is formed under the condition if the closing price of the last two candles corresponds to the current trend direction. In other words, on the chart, these two candles are painted in white (if it comes to buying).
The pattern applied to make a purchase has a form of depressions. Figure for sale resembles a cap. The last pattern is the maximum and minimum price of medium candle higher than similar points and two adjacent. As in the above case, if it comes to selling, the last two candles on the chart must be painted in black. This indicates a downward trend.
To identify the considered pattern on the chart, you can use the 3rd Candle auxiliary indicator. The tool shows when the necessary figure appears, by placing on the graph of the red or blue arrow. If it is directed up, then you need to open a purchase transaction, down - sale.
The strategy under consideration allows operations for a temporary interval convenient for a trader. Maximum results can be achieved if you set a timeframe over 1 hour. However, using this pattern, it is possible to get a good profit and for a minute chart. But in this case, the trader will collide with a large number of false signals. It is important not only to use the pattern, but also the corresponding oscillators. The latter are cut off most of the false signals, thereby warning the discovery of the transaction against the trend.
Within the framework of this trade Strategy The CCI oscillator is used, which is presented in the form of lines. It shows zones, entering which testifies to the rebuilt of the asset or its oversoldness. In the first case, the value exceeds 100, in the second - below -100. Working with this tool must be remembered that if the current value exceeds the first indicator, you can not open a purchase transaction; If below the second indicator - for sale.
Trade using the "Three Candles" pattern is carried out only during the correction period of the trend or the reversal of the current trend. Therefore, this strategy is not suitable for newbies. The main thing is to wait for the signal to confirm, and then discover the deal. In this case, the system is properly functioning.
How to trade
Before you make a transaction for buying an option, you must wait for the appearance on the graph of the blue arrow indicating upwards. In addition, the CCI oscillator on the previous candle should not exceed 100.
Buying PUT option, you need to wait until a red arrow appears on the graph indicating down. The oscillator on the previous candle should be higher than the value -100.
Expiration is set on one candle within the selected time interval. Maximum size The contribution to each transaction should not exceed 3% of the current deposit.
Examples of work
For example, a pair of GBP / USD is selected, the transactions on which are made on a 15-minute schedule. The latter demonstrates that the signals for the purchase appear late. And from four transactions for sale are successfully completed only two. Avoiding unprofitable operations is possible due to an oscillator indicating overbought. IN this case It is impossible to carry out operations for the purchase of the option Call.
Optimal from the point of view of profitability are volatile pairs of type GBP / JPY. On the given schedule, the first signal on PUT appeared in the overbought zone, so it should not be paid attention to it. The last 2 transactions with Call and Put ended successfully.
The strategy "Three Candles" is relatively simple. It can be used to train the psychology of the trader. The reason for this is that trading under this strategy is carried out under conditions of market reversal. However, it can bring good profits when working with binary options.
Download Three Candles Indicator
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The entire trading process on the vehicle comes down to earn money on short-term rollbacks. According to this TC, it is assumed that the correction will occur within three candles.
Important: If you set "-1 indicator settings, then it will put arrows not on the first, but immediately on the second candle.
How to trade on the strategy "3 candles"?
Using the same indicator, see also for some important moments. We mean size of signaling candles. Often there are situations when they meet the rules of the TC, but the input of their signals is extremely recommended. What is it about? Such moments we will consider below.
So, let all the conditions for the entrance are executed, but if you look close, then candles №1 and №2 have small bodies. In this case, you should not consider the signal to open the order. This often can be observed when large investors do not show interest in the asset. We also recommend you to trade on the "3 candles" strategy during Europe and the United States. At another time it is better to refrain from entering into transactions.
Figure 6. Candle size.
In the photo above, we just presented examples of such candles. If the second candle formed the body several times higher than the body size of the candle number 1, then such a signal is considered risky. Most likely, the rollback in the second candle has already taken place, so it is better to stay outside the game on a third candle.
Figure 7. Body candles.
The signals according to the strategy "3 candles" will be stronger if their formation occurs after a strong market trend.
Figure 8. Signal formation time.
It is also important to take into account the direction of the trend line. Sometimes it may turn out that at the price maximum at an upward trend, a signal is formed up, then simply ignore it. After all, the task is to use the short-term rollback, so you need to open transactions against the trend. In the photo below, you can see how within the framework of the "3 candles" strategy on the maximum of the ascending trend, a signal appears that you should skip.
Trade on the strategy involves the opening of positions in several pairs in one of the most volatile time intervals. That is how we get the highest quality signals.
Optimization of the basic strategy
There is no that strategy that could not be improved. If we take our case, then naturally the shooters need filtering. It is good with this task from a standard set of MT4 stochastic indicator. Settings options are as follows: (5, 3, 3).
We recommend paying attention to a quick sliding average, which is displayed by green. It is important that the 3RD Sandle indicator signals coincide on the movement with a quick line of stochastic. When such a condition is not executed, the signals can be missed. Input is allowed if the green line of the stochasty coincided in the direction of the direction of the arrow indicator in the "3 Candles" strategy. Despite this, this signal is considered risky.
Figure 10. Behavior of the fast line of stochastic.
Binary Options - Strategy " 3 Candles"- is very popular today. All because it is simple, efficient, with a good percentage of profitable transactions.
It can use it every newcomer in binary options, as special knowledge technical analysis Graphics are not required.
It is only necessary to know how the schedule is being built. japanese candles" It is he who is fundamental in the trade strategy under consideration.
Binary options " 3 Candles»Well traded on a timeframe of 15 or 30 minutes. You can consider the larger timeframe.
If the Timeframe Graphics of the Asset price is less than 15 minutes, then the trading strategy is not better not used, since there are many market noise on a small timeframe, and there is a high probability that the trading strategy " three candles"It will not work.
Work on this strategy is necessary on the trend. When the price is adjusted, it is necessary to carry a moment for a successful entry into the transaction.
Here then we help three candles. The first candle is the highest or lowest of all three. In addition, it should be higher or lower (depending on the trend) of the preceding candle.
The second candle should close along the trend and, which is very important, it should not be in the body of the first candle.
The third candle is a signal - it needs to be included in the transaction in the direction of the second candle.
Applicable indicators
Schedule "Japanese Candles" are a kind of indicator in this strategy. The form and location of three candles certainly affect the trading strategy.
Therefore, it is necessary to understand the principles of building Japanese candles.
The strategy can be applied without indicators. But, of course, it is better to use some technical analysis tools to filter false signals from three candles.
A indicator is needed that will determine the current trend on the price schedule. It is best for this simple moving average with a period of 50 or 100.
So, if the price of the asset is under the moving average, then the trend is downward. If the asset price is above the moving average, then the trend is ascending.
If the price is constantly intertwined with a moving average, then the side trend is most likely dominated on the chart.
Additionally, you can use the well-known oscillator - stochastic to filter. Its settings must be 5, 3, 3.
The direction of the slow moving average, in this case, is a priority. It should coincide with the direction of the third candle movement.
But it will be even better if the stochastic is in the rebuilt area or oversold. It will be an additional signal.
Terms of entry into a strategy transaction
Binary option Call
- We acquire a binary option Call on a third candle when the first candle is below the preceding candle and the second candle, while the second candle has not closed in " tele»First candle. Stochastic must be in the zone of oversold.
Binary option Put.
- We purchase a binary option PUT on a third candle when the first candle is above the preceding candle and the second candle, while the second candle did not close in " tele»First candle. Stochastic must be in the overbought zone.
Term of binary option
The period of the binary option must be equal to the timeframe - the period of time for which the schedule is built.
Or you can set the appropriate expiration time, which should coincide with the closure of the third candle.
When not to enter a deal
- one hour can not be traded before and after the exit of important economic news;
- can not be included in the transaction if the second candle closed in " tele»First candle.
Like these ones simple rules This trading strategy. Correctly analyzing the schedule and compliance with the rules of the strategy " 3 Candles"You can consistently make a profit with binary options trading.
From the article you will find out:
Hello everyone, dear readers and site visitors! In this article we will look at a very interesting topic, namely: Strategy 3 Candles for binary optionsImmediately recommend that you familiarize yourself (this is a completely different system based on Price Action) In general, this system is well known.
Best broker
What can I say, the system is really interesting, and if approaching the trading process with full responsibility, then it will make it possible to make a good to Forex and traded options. I want to warn immediately, the presented system implies a fairly aggressive trade(lately I am for aggressive)
That is, we will trade in the options for 60 seconds (strategy 3 candles 60 seconds), I think it is not necessary to explain that a similar type of trade is very risky. Therefore, be prepared for the fact that a large number of unprofitable deals is possible.
In general, the rules of the trading system are very simple, but at the same time a strategy, in view of its aggressiveness, can crush emotionally on the trader. In addition, given the fact that we use a very low interval, you will have to spend a long time behind the monitor screen.
This trading system is quite easy to use. Noteworthy is the fact that I imagine not the standard version of this strategy that others offer. I found an improved version, and, in my opinion, she works more well what is called, in combat conditions.
For some time I observed for the system, and I can say that it gives very good signals.
But here it is worth understanding that you need to wait for clear signals, that is, if at least one indicator does not confirm the direction of the transaction, then it is impossible to open the position.
Many newbies are just catching up, they really want to trade as often as possible. But, understand, do not need to do this, we need to chase mostly for the quality of trading signals, but not for their number.
Look
One high-quality deal will bring much more benefit, rather than a hundred thoughtless inlets. This is especially true of this system, the number of signals will be really big, but we need to wait for only explicit points of entry, otherwise, be prepared for a huge number of damages.
Input Points and Strategy Indicators - Three Candles
As I said before, in the article, we deal with the final version of the Candles for binary options in the article (this is all suitable for trading for forex, all signals c), and some indicators have been replaced. So, first of all, the NB Channel indicator was added.
It automatically draws us a certain channel, and when the price concerns the boundaries of this channel, we can count on some rebound. At the same time, you can pay attention to the direction of the channel itself. Suppose if the channel is clearly directed in, that is, it makes sense to look solely to call options.
The fact is that at the time of the formation of the second candle, the arrow can redress, which is why we are entering the third candle. The problem is the problem of inexperienced users that they are trying to enter exactly from the second candle, they say, to catch the most peak.
But at the same time they forget that the price may have been filled in one direction for a long time. By the way, we have a rare copy of the trading system that will be most well, and during the trend to give failures.
Roughly speaking, if the price will move hard in one direction, even good signals can appear, but they will not work against the priority trend. This is where serious problems will appear.
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Of course, if there are all the prerequisites that a clear price trend begins to emerge on the market, it will be appropriate to abandon any actions, which is called, from sin.
In general, the system can be used to use during the period when the market is the most calm, but, see that the broker does not undertake the potential payments for transactions..
As for that we can use, there are no restrictions at all, but I would still recommend using to greater the main currency pairs.
And here we are represented by just a reference signal when it was possible to purchase an option. Well, let's start with the fact that we have formed an arrow, and at the same time the price clearly concerned the channel boundary.
In addition, the second signal candle confirmed to us the entry point, and the arrogance itself did not perceive. As for RD Combo, his histogram does not just touch important levelAnd also changed its color to green. Ultimately, a minute option excellently worked.
conclusions
In my opinion, this is one of the most interesting systems created for the trade of minute options. In general, I would generally not recommended to conduct such aggressive trading, but, the taste and color of all markers are different.
