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Two candles is a simple strategy for binary options. Strategy Two candles for binary options (video)

Japanese candlesticks are probably the most informative type of charts for technical analysis when trading binary options. Candles (bars) are a graphical display of price movement that allows you to easily make forecasts and make profitable trades.

Chaotic set of stripes different lengths they seem only to novice traders. With some experience and knowledge, it becomes clear that such charts constantly create patterns that repeat with varying frequency, which can indicate price behavior in the near future.

Exists huge amount candlestick figures, which can accurately help predict where the price will go in the future. Based on each of them different strategies on candles for binary options.

Candlestick shadow trading in binary options involves making predictions based on the high and low points reached by the price over a certain period of time.

In this article we will look at probably the most elementary of these approaches to technical analysis. This is the so-called two-candle strategy for binary options, based on the behavior of candlestick charts in a market with a strong trend.

In its most basic form, it is carried out on bare charts. If the broker you are using does not support this type of charts in its trading terminal (which, admittedly, is rare), simply download MetaTrader4 if you have not done so before. This platform is available to everyone completely free of charge, and one can talk endlessly about its advantages.

So, first, let's figure out what a trend is. This is a long-term stable price movement in one direction. There are three types of this phenomenon:

  • Ascending (bullish) - the price is directed upward;
  • Downward (bearish) - the opposite of the previous one;
  • Flat is essentially the absence of a pronounced price direction, in which the price moves sideways with minor fluctuations.

One of the most simple ways to determine a trend is to use two moving averages (MA) with different settings. For example, on a daily chart, MAs with periods of 5 and 20 work best - the first shows the daily trend, and the second shows the monthly trend. If MA 5 is higher than MA20, the trend is bullish. On the contrary – bearish.

How to trade the 2 candle strategy?

So, we have an asset that is in a strong trend. The euro-dollar pair is recommended, since it is most often characterized by stable movement in one direction. Best time for work – American and European trading sessions.

The expiration date of trades must correspond to the timeframe. For example, candlestick analysis of binary options for 5 minutes of this type assumes a five-minute expiration period and an M5 timeframe. Once you are convinced of the presence of a market trend, you can begin direct trading.

The rules for entering a trade are quite simple: buy Call - “Higher” is bought at the opening of the bar, which is preceded by a “bullish” one.

Buying Put - “lower” - on the contrary - at the opening of the bar that followed the “bearish” one.

If the so-called “dodge” (neutral bar) closes, you can either wait for the conditions described above to be fulfilled, or enter into a transaction on the previous bar, but not in the same direction, but in the opposite direction. That is: if there was a bearish bar before the Dodge, then we open a trade “higher”, and if there was a bullish one, we open a deal “lower”.

Cons

Strategy 2 candles for binary options It does not work in all conditions, but only if there is a strong trend in the market. Therefore, it cannot be used as an independent trading system - only in combination with additional way trend determination.

And, of course, we must not forget about money management. In this case, it is recommended to make transactions for amounts not exceeding 2-3% of the total deposit.

Two candles technique correct use gives enough good results and allows you to significantly increase your deposit. And its main advantage is that, compared to most other techniques based on candlestick analysis, it is quite simple to learn.

Final grades

2 candles is , but analyzing a candlestick chart is not at all what is usually advised to beginners. In addition to its simplicity, another of its features is that it works perfectly together with the Martingale system, beloved by many traders (and despised by many).

The thing is that even in conditions of a strong trend, there are short-term fluctuations, due to which bars may close in a direction other than expected.

Trading level (difficulty) – 9.5/10

It's very simple but enough effective strategy– probably the simplest candlestick trading on binary options. The main condition for its application is the ability to determine the direction of the market.

Profitability and risks, reliability – 7/10

Even in conditions of an established stable market direction, fluctuations are possible, so this tactic, like any other, will not always give good signals. In this case, we can talk about an accuracy of 65-80%, which is very good.

Components – 6.5/10

The strategy is very simple - in fact, you only need bare charts and any additional tool or method of determining the trend to your liking.

Trading frequency – 6/10

The strategy gives signals quite often that when the right conditions trading allows you to achieve fairly high profits.

Features – 5/10

Based on the patterns of behavior of candlestick charts, this “ancient” strategy can hardly boast of any special features.

When quotes move, various candlestick patterns appear, which can be used to predict the direction of price movement. There are a great many of these models. I want to tell you about a strategy based on the simplest of them. But its simplicity does not mean small amounts of profit received from it or instability. Using the “Two Candles” strategy allowed me to increase my deposit in a year by 2000%. In my opinion, it is profitable and stable. Well, let's move on to the strategy.

Everything is based on the pattern of closing Japanese candlesticks when displaying asset price quotes. When a candle closes in one direction or another, with a high degree of probability we can say that the next candle will close in the same direction.

The candle closed with growth (bullish candle) - we draw up a contract at the opening next candle to increase asset prices.

The candle closed with a decline (bearish candle) - we draw up a contract at the opening of the next candle to lower the price.


When closing the so-called “Doja” candle (neutral candle), the contract is drawn up in the direction of the movement of the candle that closed before the “Doja” candle.


What expiration dates do I use?

To get a chart displayed in the form of Japanese candlesticks, I use the online charting service tradingview.com, I conduct trading with the company Binomo, where I use simple binary options or, to speed up the pace of trading, turbo options, and set the expiration dates of transactions depending on the time frame quotes. When trading Turbo Options, I use an expiration period of 300 seconds when analyzing quotes on the M1 timeframe. When trading simple binary options, I use the M15 timeframe for analysis and set the expiration period to 30 minutes. So, as the timeframe increases, I increase the expiration date. For the Binomo company, this period reaches up to 1 year, and starts from 60 seconds.

Transaction frequency

To make a profit of 2000% per year, I enter into contracts on my asset every day at the opening of almost every price candle. Sometimes, the number of contracts reaches 288 per day. Of these, I close 70% with a profit. And since the Binomo company gives a profitability under the contract of up to 92%, then a very tidy sum is obtained per day. This way I get my income easily and simply.

How to trade even better

To compensate for 30% losses, I always use the mathematical martingale system. Simply doubling the contract size after receiving a loss brings me total profit on all contracts. Since the strategy implies trading only according to the trend (be it long-term or short-term), it is difficult to imagine a situation where the lot is multiplied many times in a row. The most large number I have increased 4 times in a row. To avoid losing your entire deposit in this case, you should use the minimum lot value in trading. At Binomo it is 1 dollar. And even if you are a novice trader and you have 10 dollars on deposit, you will easily trade and receive good profit and thus you can increase your deposit for a very short term up to pretty large sizes. The only condition is strict adherence to the rules of the strategy and rules

Hello friends. Today we review the strategy of two candles for binary options. This is a simple technique that is convenient for starting to get acquainted with the binary options market. To get an entry point, it is enough to find a candlestick pattern and compare the received signal with the readings of special indicators. Let's look at how this works.

Strategy 2 candles for binary options.

Step #1. Check out the article “Binary options training”. It published all educational material, without studying which you will not be able to trade efficiently.

Step #2. Look at the article “MetaTrader 4 for dummies: how to download, install, configure and use the program? » Without this program, you will not be comfortable working with the rules of the “Two Candles” strategy.

Step #3. Look at the article “How to make money on binary options - instructions for a beginner.” It tells what results every trader should strive for.

Step #4. Look at the article “How to trade correctly on a demo account for forex and binary options”. From it you will learn how to safely test a new technique.

Step #5. See the article “How to choose the right binary options broker: important factors and a list of the best brokers.” Here you can choose good company for real trading.

Settings

Terminal: Metatrader 4.

Assets: all currency pairs available in the terminal.

Timeframe: M15.

Indicators: FxBinAlert, LSMA, GSO and GSOH2. To work, just download the ready-made template and indicators of the “Two Candles” strategy.

Additionally: The entry point will be helped by finding the “0-1-2” candlestick pattern.

Bullish pattern “0-1-2”: a combination for entering a rise.

Bearish pattern “0-1-2”: a combination for entering a bear market.

Chart of the “Two Candles” strategy.

FxBinAlert and LSMA - multi-colored lines on the price chart. GSO - yellow signal arrows. GSOH2 is an indicator complex placed under the chart.

Purchase

Pattern“0-1-2” formed a bullish signal.

FxBinAlert and LSMA are located under the signal candles.

GSO formed a yellow growing arrow.

GSOH2 generated two signals: the bar is above the zero level; the indicator line is above the zero level.

Expiration 2 hours or 8 candles.

Risk

Strategy “Two candles”: let’s look at an example of a bullish entry.

Sale

Pattern“0-1-2” formed a bearish signal.

FxBinAlert and LSMA are located above the signal candles.

GSO formed a yellow falling arrow.

GSOH2 generated two signals: the bar is below the zero level; the indicator lines are below the zero level.

Expiration 2 hours or 8 candles.

Risk in one transaction should not exceed 2% of the trading account.

Strategy “Two candles”: let’s look at an example of a bearish entry.

What's next

  1. Open a demo account on the website of a trusted binary broker.
  2. Go to practice trading and try to make money.
  3. If after testing your demo account increases, proceed to trading on a real deposit.
  4. If you can’t make a profit according to the rules of the “Two Candlesticks” strategy, look at “All strategies for binary options” and select a different algorithm.

Write in the comments if you managed to make money trading according to the rules of the “Two Candles” strategy?

Sincerely, Artem Bilenko's blog team
« Your life line is in your hands»

So, in stock trading there are many formats for displaying quotes on a chart, but the most informative type is the “Japanese Candlesticks”, thanks to which players can recognize many patterns in the movement of quotes.

In fact, thanks to this price format, you can easily do without technical indicators, since the market will independently communicate its intentions.

Moreover, unlike often lagging indicator signals, candlestick patterns allow you to timely determine the future trend of the market and make an entry at the most profitable level. Usage two candlestick strategies for binary options Binomo built on the natural appearance of two candles of the same direction during a pronounced trend.

That is, if the market is downward and one closed down, then the next one will be downward in 80% of cases, so the deal must be concluded at the opening of the second bar, predicting a decrease in the value of the asset. Parameters:

  • Difficulty level – for beginners;
  • Chart timeframe – M1;
  • Type – turbo options;
  • Usage time – daytime days with a pronounced trend;
  • Assets for trading – any trading instruments.

Since this is a Price Action strategy, all a trader needs to do to start using it is to switch the quote chart to a candlestick price type and a 1-minute time frame. The functionality of the Binomo terminal will allow you to easily make the necessary settings.

The main condition for using the 2 candle trading strategy for Binomo binary options is following the trend and using wave market movements. Thus, if in a downtrend the previous price candle was downward, at the open new price You should enter the market with a PUT option on a decline:

Accordingly, if in an uptrend the previous bar was rising, at the opening of a new price you should enter the market with a CALL option to increase:

To increase the accuracy of the trading strategy, it is recommended to use other patterns. For example, when a doji bar appears on an uptrend, showing zero growth, at the opening of the next one, a bet is made on a decrease in quotes:

Similarly, a trade is concluded to increase the price if the Doji candle appears first in a downtrend. Also, a pin-bar candle will indicate a market reversal - in this case, the deal is concluded at the opening of the second one with a forecast opposite to the previous movement of quotes.

Pros

With a stable trend wave movement, the system is able to guarantee that almost every executed contract ends in profit. In addition, the strategy provides highly cyclical trading signals - up to 20 within an hour and up to 100 during the day.


The system cannot be used based only on the pattern of appearance of two candles - you should definitely pay attention to the appearance of other technical analysis models. To use it, you need a trend, so to work with the system, you must first find an underlying asset among trading instruments where there is a trend and wave movement of the market.


Expiration time and money management

The “Two Candles” system works optimally on a 1-minute timeframe and with a trade expiration period of 2-3 minutes. If you increase the chart interval, then the expiration date must be calculated additionally.

Will help reduce possible risks in trading classic rules money management – ​​calculation of the option amount depending on the available deposit volume.

A large amount of operating capital allows you to make trading bets, the size of which reaches 2%-3% of the deposit amount, and with a small trading capital you are allowed to risk in one option the minimum amount allowed - 1 dollar, which is possible in the Binomo company.