Categorized | Binary Option Indicators

How to trade Binary Option Using Breakout of Patterns

In binary trading, it will be great for trader to have the ability to predict the future movement of the price. Once you are able to determine the next movement of the price, you just have to focus on entering trades that are in the direction of the predicted price.

The breakout of candlestick patterns is a great way for traders to predict the movement of the price.

Below are a few candlestick patterns that you can use

  • Symmetrical Triangle

This is a pattern where it forms a symmetrical triangle. Whenever you see the price breaking out of the symmetrical triangle in the same direction as the previous trend, you can be sure that the price is going to continue with the previous trend.

Symmetrical-Triangle1

  • Wedges Formation

This rising wedge is one where you see the price slowly moving up the slope before it breaks downwards. It is also a continuation pattern which you can use.

Rising-Wedges

The above 2 formation are continuation pattern which means that the price will continue to move in the previous trend.

For example, when you see that there is a downward movement before the formation of the symmetrical triangle. When the price breaks downwards of the symmetrical triangle, you will start to look for LOW option opportunity.

When there is an opportunity to go HIGH, it will be best that you enter trade with half the trade size as you are trading against the trend.

Below is the reversal candlestick patterns you can use

  • Head and Shoulder

This head and shoulder pattern is one which you will see the highest point at the middle forming the head while the 2 sides forms lower high which is the shoulder.

When you see the price breaking out of the bottom neckline, it is a sign that the price is going to move down.

Top-head-and-shoulder

  • Double Top/Bottom

The double top is the formation of a M while the double bottom is the formation of a W

IdealDoubleTop
The above 2 are important reversal candlestick patterns that you can use. When the price breaks through the neckline of these 2 patterns, you just have to enter your option in the direction of the breakout.

Understanding the candlestick patterns can be a great help to your binary trading career. So spend sometime to go through your chart now.

For those of you who are interested to see how I trade, you can take a look at my FREE Live Trading Room where I will allow you to watch over my shoulder to see how I trade everyday and how I setup my chart everyday.

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