In the example below, you'll notice that I created a resistance level blue line which the price bounced off. This created a consolidation range. I expected the price to start rising immediately it broke out of this range.

It did and an uptrend developed. As the prices continued rising, I entered a 5-minute buy position because I expected the price to continue going up. Generally, trading price action requires you first identify a specific price range support or resistance.

Then, determine whether the prices will rise or fall below this range when a breakout occurs. Once the breakout happens, all you need to do is enter a buy or sell position. The interesting thing about trading on IQ Option is that entering a 5-minute trade doesn't necessarily mean that your position will be held for 5 minutes exactly. In my trade, I actually entered position at When trading with price action, you need to act fast.

You, therefore, need to continuously analyze price movements over a period of time before trade entry. The good thing is that, once you've identified a good entry point, it becomes really easy to make winning trades.

You need a good trading plan that is based on a price action entry and exit strategy. You need to create precise rules for yourself. Additionally, trading based on a naked chart can be based on different branches of the same field. There are many price action trading books that are seemingly all about the same thing, but each focuses on different elements of price action.

Support and resistance levels, classic technical analysis formations, or tools used in price action were originally used on the daily interval and higher. At one time there was no access to intraday charts. The computer age has meant that we have real-time quotes, and trading platforms present us with a price chart on almost every interval, such as 1m, 5m, 30m, 1h, etc. It turns out that all the techniques related to the analysis of price behaviour translate to these lower intervals. It is, therefore, safe to say that price action can be used in day trading.

In trading based on price action, the most important thing is to observe the charts. It is only by looking at the charts of different assets at different intervals for hours that you can gain the experience necessary to analyse market behaviour. It is a good idea to practice trading on a demo account. IQ Option gives its users the possibility of unlimited training in a virtual account. If you do not have one yet, register a demo account with IQ Option now! Of course it works.

You can prove it to yourself in a very easy way. Open a chart of any instrument and find the bottom that is closest to the present moment. Draw a horizontal line on the chart at that bottom. Now scroll the chart backwards to the left and notice that the price has already reacted with this price level in the past.

But it is already a very big deal. Of course, knowing where the market can make a turn and using that knowledge to make a profitable trade are two different things. Price action is not fortune telling, it is a chart analysis methodology around which you can build a profitable strategy.

Trading using both candles and price action requires a specific set of conditions. In this example, we have set the candlestick to a 5 minutes time-frame. Hence the trades should have an expiry of 5 min, 10 min, or 15 minutes.

You must always stick to the strategy while trading. The step to follow are as follows —. Make sure that the candlestick timeframe is set to 5 minutes or more. Place the trades with expiry equal or double the chart timeframe.

Risk Warning: The information provided here does not constitute a recommendation to carry out business or investment. While using the information provided here, you are solely for your decisions and assume all the risks associated with the financial result of such transactions. We may have an affiliate agreement with the brands or companies mentioned here. Candlestick patterns are easy to follow and understand. Try them while trading Options trading with IQ Option and Binomo. And, sadly, the traders leave the trading platform after losing money.

What is the Candlestick pattern strategy, and how to use it with IQ Option or Binomo? Recent Posts IQ Option Review Binomo Review Forex trading in United Arab Emirates FBS Forex Broker UAE. OPEN IQ OPTION. OPEN BINOMO ACCOUNT. Configure the chart for Candlestick Pattern Strategy After logging in into the trading platform, you will find either an Area Chart or a Candlestick Chart. Identify the Candlestick pattern and place your trade How to find the right Candlestick pattern setup and enter a BUY or SELL position?

Downtrends — Selling opportunity. Downtrend formation Type 1 When a Red Candle covers the body of the previous one or two candles as shown below. Downtrend formation type 2 When two small red candlesticks have covered the previous green candle. Downtrend Type 3 When two red candlesticks of different sizes have covered the previous green candle. Uptrends — Buying opportunity. The numbered candlesticks are counted as standard candlesticks.

The circled candlesticks are special candlesticks not included in the Triple candlestick pattern. How to trade with candlestick colors in IQ Option.

For instance, the picture below with 5-minute Japanese candlestick chart. Open the option when the 4th candlestick starts at The expiration time is At this moment, purchase time is Stay focused if you trade IQ Option following the three candlesticks pattern. I usually call each time I open an option as a trading cycle. The trading cycle only ends when there is a winning order.

Each cycle has a maximum of 3 consecutive options. Therefore, when the 1st option is near the end. For example, a 5-minute Japanese candlestick chart produces 3 consecutive green candlesticks. You start betting on the red candlestick LOWER.

The 1st option loses. You increase the money and continue to bet on the red candlestick LOWER for the 2nd option. If you win any one option, that cycle ends and no more trades are opened. This cycle wins in the 1st option. Example 3 , The cycle wins at the 3rd option. This clip is quite long. In addition, practice counting candlesticks from today. At the candle time periods like 5 minutes or 15 minutes, you will have a habit of choosing trading hours.

Never appear a series of candlesticks of the same color in a row. Triple candlestick pattern is a sequence of consecutive options. Therefore, you need to have enough money and an appropriate capital management method in IQ Option. Do not put all your capital into one cycle. Because if the market is affected by the sudden news, it will fluctuate in one direction only. The more you bet, the more you lose money. You may even run out of money in your account. Triple candlestick pattern is easy to make money, especially in the first transactions.

However, you need to be calm and never get greedy. Because after a losing or winning streak, you could fall in a psychology trap. If you lose, you increase money to regain. If you win, you raise money in order to earn more. These are the taboos in options trading, which lead to the mistake that can burn all of your money.

For this reason, training your trading emotions is extremely important in this game. Putting discipline on top is an essential condition to make money sustainably in IQ Option.

Most of the new traders in Malaysia open a trading account and stop trading in few days after losing money. This is because of two reasons —. There are many easy to use Options trading strategies that have the potential of making money with online trading platforms like IQ Option, Olymp Trade, and Olymp Trade. Will you like to consider trying them by opening an account?

Check out IQ Option Review and Olymp Trade Review — and open a Free Demo or Real account. Among so many trading strategies, this one is simple to use and effective strategy. It has the great potential of making money online. You can check out the other strategies like MACD Strategy and Bollinger Band Strategy.

The Candlestick pattern strategy requires identifying the formation of particular candlestick patterns. The trader should trade only when such patterns appear, otherwise, he should avoid trading. This strategy does not require any other indicators except a candlestick chart. Look for the formation of a candlestick which is of a different color than the two previous candles and that covers the previous two candles.

To begin with this trading strategy, you need to access the trading platform. Sign up with any of the trading platforms below —. After login, you will find either an Area Chart or a Candlestick Chart on the trading platform. If you find the area chart, change to Candlesticks by clicking Japanese Candlesticks.

You can bring in Candlestick charts by selecting the Candlestick symbol as shown in the below screenshot. Similarly, you can select the Candlestick chart on the Olymp Trade platform. The process is almost similar to IQ Option.

Have you selected the Candlesticks chart on your trading platform? Now, set the time frame to 5 minutes in the chart. You have to click the candle time period button and select 5 minutes as shown below. The trade expiry should be 10 minutes to 15 minutes while analyzing on a 5-minute chart. While trading with IQ Option, select the nearest expiry within 10 or 15 minutes.

If you are trading with Olymp Trade, select the nearest 15minutes expiry. The series of candles in the above images are the representation of the price of the underlying asset, i. A green candle indicates that the price has gone up in that particular time period, and a red candle means that the price has gone down.

When several candles of the same color form in continuation, it is a trend. The trend is positive if a series of green candle forms; the trend is negative is a series of red candles formed.

The candlestick pattern trading strategy is based on watching the SIZE and COLOR of the candles. There are a few typical formations that indicate a potential trading opportunity.

We discuss all these possibilities below —. When a Red Candle covers the body of the previous one or two candles as shown below. It is a SELL signal. Two small red candlesticks formed, and together, they have covered the previous green candle. This indicates a downtrend and a SELL Signal. When two red candlesticks of different have covered the previous green candle. When a green candle covers the size of the previous 1 or two red candles, it is an uptrend.

This gives a BUY Signal. When two green candles together cover the size of the previous red candle, it is an uptrend. When a green candle covers the size of the previous red candle, it is an uptrend. Wait until a Red or Green candlestick formation takes place, as shown above. Then place a trade with an expiry of at least equal or double the candlestick timeframe. In this example, we have set the candlestick to 5 minutes timeframe; then, the trades should have an expiry of either 5, 10, or 15 minutes.

The above strategy has been tested by several traders. You can try it in a Free Demo Account and practice. Follow the following steps to get started. Make sure to set the candlestick to 5 minutes or more. Place the trades with expiry equal to 10 or 15 minutes. Disclaimer Privacy policy. How to trade with IQ Option in Malaysia using Candlestick trading strategy?

Candlestick patterns are easy to follow and understand. Try them while trading Fixed Time Return Investment with IQ Option and Olymp Trade. Candlestick Trading Strategy — How to trade successfully in Malaysia? And, sadly, people leave the trading platform after losing money. Here is a simple to follow Candlestick Pattern Trading Strategy, that can help you trade better in Malaysia.

What is the Candlestick strategy and how to use this with IQ Option Platform? Set your chart to display Candlestick Pattern After login, you will find either an Area Chart or a Candlestick Chart on the trading platform. Identify the pattern and place your trade How to find the right Candlestick pattern setup to enter the market?

Downtrends — Selling opportunity. Downtrend formation Type 1 When a Red Candle covers the body of the previous one or two candles as shown below. Downtrend formation type 2 Two small red candlesticks formed, and together, they have covered the previous green candle. Downtrend Type 3 When two red candlesticks of different have covered the previous green candle.

Uptrends — Buying opportunity. Uptrend Formation Type 1 When a green candle covers the size of the previous 1 or two red candles, it is an uptrend. Uptrend Formation Type 2 When two green candles together cover the size of the previous red candle, it is an uptrend.

Uptrend Formation Type 3 When a green candle covers the size of the previous red candle, it is an uptrend. How to open a profitable trade using the above Candlestick patterns? Go to mobile version.

Downtrend formation Type 1 When a Red Candle covers the body of the previous one or two candles as shown below. Uptrend Formation Type 3 When a green candle covers the size of the previous red candle, it is an uptrend. Thank you for the time you spent to read this article! For example, the long-legged doji candlestick usually starts out as a long bull candle but thereafter closes when it is short. Candlesticks Strategies. You can extend it to longer time periods or add some indicators to increase reliability. In short, this is a strategy based on the statistical probability of the colors of three previous candlesticks.

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