One of the most important aspects of binary options strategy is to use candlestick technical analysis. With the help of this method, you will be able to increase your chances of predicting movements of assets in the binary options business. As you know, the movement of an asset can also be influenced by the trading behavior of financial traders.

For example, if a huge number of traders decide to sell an asset, then the value of that asset is expected to drop. If a huge number of people decide to buy an asset, then the value of the asset will increase.

Using candlestick technical analysis traders will be able to predict the future movement of an asset based on the overall market sentiment and trader action on a particular asset.

Read the article below in order to learn how this works exactly. The strategy described below only works with brokers that have the required candlestick charts on their platforms. International traders can use 24Option while traders from the USA can use Wynn Finance. Both of these brokers have the required charts to use this strategy and have a long and solid reputation. Candlesticks are indicators in financial trading including binary options that will reveal the movement of certain assets based on the actions performed by traders during a particular moment in time.

Imagine the following example:. Using normal charts, in the initial few minutes you would have only been able to notice that the value of the asset has decreased dramatically.

Seeing this, you would have most likely bet on the outcome that the value of the asset would continue to decrease even further. As such, you would have lost money in the example above since the value actually recovered and reached an even higher value than the initial value.

What if there would be a method that would reveal you the ratio of people selling and the ratio of people buying the mentioned asset? You would have been able to purchase the right binary options contract in this case.

Well, doing EXACTLY the thing mentioned in the above paragraph is actually possible using candlesticks in binary options. In order to understand how this works, first you will have to know what a candlestick is made of. Below you will find the elements that make up a candlestick. The real body or body of the candlestick is the rectangle in the middle of the candlestick.

The length of this rectangle represents the size of the movement caused by trader action. A long body denotes a large charge in the value of the asset. The shadows are the lines on top or on the bottom of the real body. The length of the line denoted the number of traders and trades that were necessary in order to determine the movement of an asset.

For example, a very long line on top means that a very large number of traders have decided to buy the given asset. A long line on the bottom means that a large number of people have decided to sell the asset. Each real body also has a color, most commonly either red or green. A red color means that the value of the asset was decreasing. A green real body means that the value of an asset has been increasing. Some binary options brokers do not use the colors red or green in order to represent the direction of candlesticks.

The most common alternative is white and black where white represents an increase while black represents a decrease. As hinted above, the length of a real body denoted the size of the increase or decrease in the value of the asset. A long red real body means that the value of the asset has decreased a lot in a very short time frame.

A very long green real body means the opposite of this. The length of the shadows denotes the number of traders and number of trades that were executed for a particular position. A very log shadow on top of the real body means that a lot of traders have bought the asset in question. A very long shadow on the bottom of the real body indicates that a of of traders have suddenly decided to sell the asset in question. Now that you know what candlesticks actually are in binary options and how to read them, we will reveal you how you can use them in order to predict the future movement of an asset.

There are basically two main strategies that work best. The first strategy is called the shooting star strategy. This strategy can be used both in binary options and traditional forex or stock trading as well. The shooting star binary options strategy uses candlesticks in order to predict the decreasing of the value of the asset in short term. In order to use this strategy you will have to look after a very short green or red read body as well as a very large lower shadow.

Imagine that the value of an asset is continually increasing. Now, you suddenly notice a very small decrease represented by a small red real body or a drastically lower increase represented by a very small green real body. You also notice that the real body has a very!

The hanging man strategy is basically the opposite of the shooting start strategy in binary options trading. This strategy is used to predict the sudden upward change in the movement of assets.

However, this strategy is less accurate than the shooting star strategy.

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If you are a newcomer, then you should initially focus on the shooting star strategy only. You will be able to use the hanging man binary options strategy during a session of trading when the value of an asset is continually decreasing. In this case, if you notice a very short red or green real body and a very long upper shadow you can guess that the value of an asset will begin to increase shortly.

The value of an asset is continually decreasing. At some point you notice a very short real body and a very short or non-existing lower shadow as well as a very long upper shadow. Please keep in mind: All of these only work at a binary options broker that has the appropriate charting tools to display candlesticks. You need to make sure to only sign up at such a broker. Non-USA traders can use 24Option while traders from the USA can use Wynn Finance.

As you could have noticed above, using this binary options winning strategy is not that complicated after all. A very important part of learning to use this strategy is to remember the designs of the candlesticks mentioned above.

You will have to exercise a little bit trading with a demo account before you will be able to spot these trend developments hinted by the candlesticks all the time. Likewise, you can use the information you learned here in order to make all kinds of other predictions as well. Such as, for example, if the real body is very short and both the upper and the lower shadow are of equal length and are very large, then in this case, the value of an asset is expected to remain constant.

There are also two considerations you will have to remember. However, most of the time these patterns are indeed capable of predicting the correct outcome. This is more than enough to generate a constant positive winning ratio. The second consideration is that you can only use these strategies in order to predict the movement of an asset on a short-term basis. By short term we mean anything between 5 minutes to 1 hour.

These strategies will not be accurate for long positions.

And this is all for this strategy guide. However, you are welcome to check out our additional guides and articles in order to learn more binary options winning tips and tricks. Does all this still seem too complicated for you? In this detailed and complete guide I will talk about how much money you should invest per trade when trading binary options. Too many websites claim that you should invest as much as possible but is this really effective Learn to use long-term binary options strategies in order to make money in binary options trading.

Find out why these strategies are the easiest to implement. Learn how to trade stocks in binary options. Trading stocks is one of the most difficult ways to make money in binary trading but if done right it can offer massive winning and payout opportunities.

The information and trading guides found on the webiste constitute the authors' opinion only. Binary options involve high-risk and are not suitable for all investors. Binary options may not be legal in your jurisdiction.

It's visitors' responsibility to make sure binary options are legal in their jurisdiction before engaging in trading activity. Candlestick Binary Options Winning Strategies. The Best Binary Options Brokers in Best Winning Tips for Newcomers.

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Engulfing Candlestick Analysis Method. Guide on Money Management. Guide on Trading Stocks Successfully. How Much Should I Invest Per Trade in Binary? How to Make Money with Long-term Strategies. Trading Options on News. What are Candlesticks in Binary Options? Imagine the following example: The real body The real body or body of the candlestick is the rectangle in the middle of the candlestick.

The shadows The shadows are the lines on top or on the bottom of the real body. The length of the real body As hinted above, the length of a real body denoted the size of the increase or decrease in the value of the asset.

The length of the shadow The length of the shadows denotes the number of traders and number of trades that were executed for a particular position. Predicting the Movement of Assets with Candlesticks Now that you know what candlesticks actually are in binary options and how to read them, we will reveal you how you can use them in order to predict the future movement of an asset.

The shooting star strategy The first strategy is called the shooting star strategy. Let us explain what this means. This means the following: This will lead to the following: What you should do: The hanging man strategy The hanging man strategy is basically the opposite of the shooting start strategy in binary options trading.

General Tips and Considerations As you could have noticed above, using this binary options winning strategy is not that complicated after all. Be the First to Comment! Notify of new replies to this comment.