In this article, we will tell you about trading strategy on Binomo. We will also provide you with various strategies with descriptions and explanations. Here you will learn how to trade with candlestick colors in Binomo.
How To Trade With Candlestick Colors In Binomo
There is a strategy for Binomo is to follow the colors of the candlesticks. It means to open deal which color the next candle will be. The entry signals is the basis for trading.
They include trends, test candlesticks, candlestick patterns, and finally the support and resistance.
Here, For the entry signal is the Morning Star candlestick pattern combined with Support.
- The 5-minute Japanese candlestick chart. The assets of USD/JPY
- $100 of capital, open each trade with $10 (10% of your balance)
- It is important analyze verifying support and resistance lines, determining the trend of the price, etc.
Below are icons for describing trading and the reason for opening trades.
The antenna icon is the signal.
The downwards red arrow is the DOWN (open deal at which the candlestick is red).
The upwards green arrow is the UP (open deal at which the candlestick is green).
General Market Analysis
The opening price had some strong fluctuations but then gradually formed a bullish trend later on. Here, we should to enter a trade only in a bullish trend which would give a higher probability to get profit. So I chose the strategy using the Morning Star candlestick pattern + Support.
It is important to think up the right after analyzing the market within your trading session which you can choose a reasonable trading strategy. In addition, you must manage your capital as well as emotion. After you can think how to make some profit in Binomo.
There were 5 deals opened, consisting of 4 profit and 1 loss. The profit was $20 (20% of the original capital).
Reasons For Opening Deals on Binomo
Deal 1: the price is in a bullish trend but then plummets and touches the support level forming a Morning Star candlestick pattern => an UP opens. a loss. After this deal, It was expected that the price would continue to fall but it did not. The price showed signs of going sideways and slightly increasing.
Deal 2: the price continued to test the support level and formed a Morning Star candlestick pattern => an UP opens. The result is getting profit. Because the length of the third candlestick was not eligible to enter a trade. When facing a case like this, you could ignore it to keep your account safe.
Deal 3: the price fluctuated with a small margin. The Morning Star pattern continued to show up => Another UP opens and this is getting profit.
Deal 4: the price continued to break the level and go up. It tested the old resistance level with a Morning Star candlestick pattern => A new UP opens and this is get profit again.
After this deal, the price continued to trend up. However, there was no entry signal, here it is important to wait.
Deal 5: the price slightly decreased and formed a Morning Star pattern in the support zone, especially, the third candlestick was in a strong bullish trend => an UP opens. It is the fourth get profit in a row.
Also the stopping at the right time in trading affects the outcome a lot more than the used strategy.
Pros And Cons – Binomo
With the Morning Star candlestick pattern with a very high accuracy rate. This makes you feel more confident during the transaction.
When the price is in an uptrend, the strategy will be more perfect.
The capital management method is suitable for the majority of traders..
Quite rarely in a short trading session, the incidence of the Morning Star candlestick pattern to appear is so large like this. One of the weaknesses of this strategy is that you may need several trading sessions to get the number of deals that meet the above requirement.
It is necessary to clearly identify from weak to strong support zones along the price bar so as not to skip some good entry points.
This is the strategy to follow the colors of candles so you can only have very little time for setting up. As well as deciding whether or not to open deals.
You may not have much time to set up or decide whether to open an deal or not because this is the strategy to follow the colors of candles.
Try to study and practice. Only then will you be able to embark on this path.