Candlestick Patterns Strategy
It is not that hard to predict the market direction. To do this though, you must “read” candle patterns. If the trader masters that skill, he or she will have no more problems identifying the price direction.
Types of Candle Patterns
Bearish/bull engulfing pattern in reversal and continuation models;
Pin bars (Pinocchio bars).
If the trader can recognize the patterns formed by Japanese candlesticks, he or she can make successful trades.
What Do I Need to Trade?
To perform technical analysis, install a trading platform to your computer and choose a reliable and honest broker. You may choose safe broker that offers perfect terms of collaboration, including £1 minimum bet, £10 minimum deposit, and £50 deposit for the Martingale strategy (optional). Believe us, you won’t find more favourable and trader-friendly conditions for trading.
Quotation Analysis
Bearish engulfing continuation pattern
This strategy is applied when the trend retraces and starts to move in the opposite direction. When you see a bearish candle engulfing one or several previous candles, you can buy a Put option, because there is 99% chance that the trend will continue moving in that direction.
Bullish engulfing continuation pattern
This model is the opposite of the pattern described above.
Bearish engulfing reversal pattern
Bullish engulfing reversal pattern
This model is the opposite of the pattern described above.
A too high candle means that the trend is about to retrace, pushing off with its long “Pinocchio nose” from resistance/support level and continuing to move in the opposite direction.
Candle patterns and their application in trading
Standard options: 15-120-minute expiry time