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Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
Lesson BTF107. Single Candlestick Patterns for Binary Trading
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Lesson BTF107. Single Candlestick Patterns for Binary Trading

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In this lesson we will go through this and learning about the most common formation out there.

In this lesson we will go through this and learning about the most common formation out there.

Published in: Economy & Finance, Business
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  • 1. Binary Trading Finance 100 - Beginner Course Lesson BTF107: Single Candlestick Patterns Presented by Orlando Gutierrez for BinaryTradingFinance.com
  • 2. Risk Disclosure Trading binary options is a challenging and potentially profitable endeavor for educated and disciplined investors who are willing to take an above average risk on their capital. Before you decide to enter the world of binary options you should carefully consider your objectives, education/capability and most of all your risk aversion. Never invest money you cannot afford to lose. Moreover, the information presented here is for informational and educational purposes only; the contents of this presentation are not to be considered as an offer or advice to buy or sell any particular security.
  • 3. Summary • What are single candlestick patterns • Continuation or Reversal patterns? • The Doji • The Pin bar • The Hammer & The Hanging Man • The Inverted Hammer and The Shooting Star
  • 4. What are single candlestick patterns? • Single candlestick patterns refer to formations composed of only one candlestick. • These candlesticks are not just any candlestick, they give us information about price movement and an idea if a move is continuing or reversing. • The most important thing about these patterns are the candle´s wicks and bodies. • By analyzing the shape of the candle we can accurately guess if a level has been rejected and we might reverse or if there´s short term indecision and the move might continue.
  • 5. The Doji • A Doji is a candle that has a very shallow body, almost non existent, with long wicks to both the upside and the down side. High High LowLow Open OpenClose
  • 6. What does the Doji tells us? • The opening and closing price of the candle are almost the same but the wicks of the candle are long. • This tells us there has been a great deal of indecision between buyers and sellers, which means that neither the buying or the selling pressure could take each other out to make prices move in a definitive direction • This information is important and must be utilize with other technical tools to confirm a continuation or a reversal. • If a Doji appears at a level of strong support this might tell us that that the bears could not overcome the buying pressure at the level and price might reverse, so we will be looking to buy calls on a trend reversal. • If a Doji appears in the middle of a move with no apparent level of support or resistance, this might be viewed as a continuation pattern.
  • 7. Real example of a Doji • Here´s a daily chart of AAPL. Price started to move down but then retraced to a key levels just to see a doji formed and a clear continuation of the main trend Buy puts ALERT!
  • 8. The Pin Bar • A Pin bar is a candle that has a shallow body, with long wicks to either the upside or the down side. High (Tail) High (Nose) Low (Nose) Low (Tail) Open Open Close Close
  • 9. What does the Pin bar tells us? • The opening and closing price are very close to each other forming a small body on the candle. • However the long wicks on the downside (bullish pin bar) and the upside (bearish pin bar) gives us signs of exhaustion. • We find the bearish pin bar at the end of a down move and the bullish pin bar at the end of an up move. • Given the information that we get from these formations we can accurately say they are a reversal patterns. • When a Pin bar appears at the end of an uptrend at a resistance level we could use them as a confirmation of reversal and buy calls to counter trend trade.
  • 10. Real example of Pin bar • Here´s a daily chart of AAPL where we can clearly see a pin bar buy in play at the end of a down move Buy calls ALERT!
  • 11. The Hammer and Hanging Man • The hammer and hanging man are the same in appearance but they actually occur in very different scenarios. Open Close Low (Tail) This candlestick is very similar to the bullish pinbar, the difference is that the wicks point to the side of the trend signaling rejection.
  • 12. What does the Hammer and Hanging man tells us? • The opening and closing price are very close to each other forming a small body on the candle. • However the long wicks on the downside gives us signs of rejection. • Price moves following the trend but then retracts forming a big wick and signaling rejection of the zone and a possible reversal. • When a hammer appears at the end of down move or at a support level we could use it as a confirmation of reversal and counter trend trade. • When a hanging man appears at the end of an up move or at a resistance level we could use it as cofirmation of reversal and buy puts to trade the reversal.
  • 13. Real example of a Hammer • This is a daily chart of FB. The main trend is up and we are looking to buy calls on a correction. We wait for price to retrace and we get a hammer at $47.00 which is also a round number and psychological support. Buy calls ALERT!
  • 14. The Inverted Hammer and The Shooting Star • The inverted hammer and shooting star are the same in appearance but they actually occur in very different scenarios. Open Close High (Tail) This candlestick is very similar to the bearish pinbar, the difference is that the wicks point to the side of the trend signaling rejection.
  • 15. What does the Inverted Hammer and Shooting Star tells us? • The opening and closing price are very close to each other forming a small body on the candle. • However the long wicks on the upside gives us signs of rejection. • Price moves following the trend but then retracts forming a big wick and signaling rejection of the zone and a possible reversal. • When an inverted hammer appears at the end of a down move or at a support level we could use it as a confirmation of reversal and counter trend trade. • When a shooting star prints a the end of an up trend we can use it as confirmation of reversal and trade it to the down side buying puts.
  • 16. Real example of a Shooting Star • Here´s a daily chart of COST. We can clearly see that after a big move up we we are due for a reversal and a shooting star prints giving us the green flag to buy puts. Buy puts ALERT!
  • 17. Thank you for joining us www.BinaryTradingFinance.com

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