Trading strategy for binary options "Third Candle"
The "Third candle" strategy is based on predicting the behavior of the third candle with the help of indicators. It is safe to say that this is the simplest methodology, as all you need to do is to carefully study the chart of the currency pair and the first two candlesticks.
Input parameters
- Currency pairs: GBP/USD and EUR/USD
- Timeframe: M5, M15.
- Bidding time: 24/7
- Type of strategy: indicator
- Used indicators: Var Mov Avg3, b-clock
Looking at the above screenshot you can see that the Var Mov Avg3 indicator is a directional indicator trend (green and red dots are drawn on the line).
A technique for correctly buying a call option on the upside (CALL):
Wait for the appearance of two green candles in a row. It should be noted that the Var Mov Avg3 indicator should build two green points on the line. Now it is necessary to wait for the complete closing of the second candle and buy an option on the upside. A very important factor is the pricing of the second candle. So, the price indicator of the closing of the second candle should exceed the level of the first candle.
A technique for correctly buying a downside option (PUT):
It is necessary to wait for the appearance of two candles of red color. As for the Var_Mov_Avg3 indicator, it should mark the line in the form of two red dots. Now we wait for the second candle to close and proceed to active actions, namely buy a downside option.
ForTrader.org experts note that the trading position expiration period is 5 minutes for the M5 timeframe and 15 minutes for the M15 timeframe, respectively.
Download the template and indicators of the strategy "Third Candle"