How often have you thought about your career? Do you want it to bring you lots of money or don’t take a lot of time? There are a lot of variant for earning money but it depends only from you which one will you choose from them to provide success and long-lasting income. In this article we will speak about binary options trading. Nowadays most of adults know about this fast and efficient way of making money. A lot of people think that it is very simple way but you shouldn’t forget that in binary trading options as in any other business if you want to achieve really significant goals in this field you should spend a lot of time and efforts for this. This article is dedicated to such option in binary options trading as using candlesticks. If you are a newcomer in this trade it is rather hard for you to decide whether you need this function or not. We hope that this article will help you to deal with this question.
Candlesticks as well as line charts or bar charts were created to display movement of the price. Specialists affirm that candlesticks method is the best method among other which has a lot of advantages. Let’s consider some of them.
Why use candlesticks for successful binary options trading
Reasons for using candlesticks for the successful binary options trading are following:
- Comparably with bar charts or line charts which display only line which characterize the price movement each of candlesticks works like an indicator. A lot of experienced traders can’t make the right predictions without using candlesticks in their trades.
- Each of simple candlestick patterns is very simple and allow you to make the right decision intuitively only by observing candlesticks. They are able to characterize rise of the price or its decline. Candlestick patterns will greatly help newcomers to understand promptly how to work out right predictions and to analyze the market situation. This option will come in hand not only for beginners but also for the experienced traders too. These traders often use candlestick patterns for instantaneous analyze of the asset level. It helps them to work out their predictions very quickly and in the right way.
- Complex candlestick patterns consist of two or more candlesticks unlike previously mentioned patterns. This difference allows traders to make their decisions more unhesitatingly because they are based on several candlesticks which better characterizes the price movement.
- Very important advantage of candlesticks is that they can show changes that are completely or almost completely invisible when you use bar charts or line charts. Such important signs as breakaway gaps and island reversals may be missed if you don’t use candlesticks in your trade.
- One more advantage of using candlesticks is that they are able to indicate directions of the price level much earlier than other indicators will show these changes to you. As example: trading range which is changing is the first sign that shows the changes in the current market and no other indicators besides candlesticks can give you an opportunity to evaluate these changes correctly.
Each of advantages mentioned above is really significant in the world of binary options trading and the excellent work of candlesticks is proven over the years by an experienced traders.
How to evaluate a candlestick correctly?
For successful trading you have to use candlesticks in the correct way. To make them really useful for your trade you must clearly understand what they show and how to work with their signals. Every candlestick consists of body and wick. Let’s see what each of these parts indicates:
- Variant 1. There is no body in the candlestick. Such candlestick is known as doji and it indicates changes in the market sentiment. Also the doji indicates end of the price movement.
- Variant 2. The wick is not as substantial as the body of candlestick. This situation divides on two different cases and in each of them wick’s role is important:
Candlestick’s wick is completely missing. Such situation shows strong market sentiment in the direction of candlestick.
Candlestick’s wick is rather long. If the wick is long comparable with the body of candlestick it means that the current market is trying to push in a definite direction but it didn’t have energy for keeping this movement.
It can although be the result of certain support or resistance that market can’t break. To understand it in the right way you should check the nearest trend lines together with moving average lines and other resistance/support levels. If you notice them you need to stoop investing in this movement immediately. In the case if you will not notice them you should change your time frame to a shorter and keep your trading.