What is the Bollinger Bands Indicator.

Bollinger Bands are a technical indicator created by John Bollinger. They are based on the price volatility of an asset and consist of three lines: the upper band, the lower band and the simple moving average in the middle. These bands expand or contract based on market volatility. When the price approaches the bands, it could indicate an impending opportunity.

Benefits of using Bollinger Bands.

Bollinger Bands offer several benefits. First of all, they help identify periods of high and low volatility , allowing you to make more informed decisions. They can also be used to spot potential trend reversals or breakouts. But are they really the best indicator?

Using Bollinger Bands.

While Bollinger Bands are powerful, there is no universal “best” indicator. It is vital to consider market conditions, confirm signals with other indicators, and use a solid strategy. Bollinger Bands alone could generate false signals, so it is advisable to integrate them with other analyses.

Winning strategy.

Here is a simple but effective strategy for using Bollinger Bands successfully:

1. Trend Identification: First, identify the general trend of the market using other tools such as moving averages or trend indicators.
2. Signal Confirmation: Use Bollinger Bands to identify possible reversal or breakout points. Always confirm these signals with other indicators, such as the MACD or RSI.
3. Risk Management: Set stop loss and take profit levels based on market volatility. Don’t invest more than you can afford to lose.
4. Practice and Adaptation: Practice makes perfect. Test the strategy on demo accounts and adapt it to changing market conditions.

Conclusion.

Bollinger Bands are certainly a powerful tool for trading, but there is no single “best” indicator. The key to successful trading is integrating different analyzes and developing a solid strategy.

Thank you for joining us on this short journey into using Bollinger Bands in trading. See you next time!

_____________________________

Questions about trading? Try AI, Artificial Intelligence
(Robot bottom right)

Below you can see the brokers most used by our traders.  they have been selected based on the number of registrations and trading operations. In addition to these, you can view the complete list of brokers with relative comparison.

Visit our Italian website ForzaForex.it (translator option in many languages) full of free indicators, strategies and unique resources!

By registering through these links you get preferential assistance, various free resources and the possibility of free access to the VIP signal room. Clear cookies before visiting a broker. Send your ID, teh identification number that the broker assigns you, to info@freebinaryoptions.one.

Risk warning: "Binary options are not promoted or sold to retail EEA traders" If  the broker is not authorized in your area, e.g. IQ Option  (Eurozone / Usa), you can choose from our Broker Comparison (reliable brokers who accept traders from all over the world, following image):

 

Welcome to this comparison between Pocket Option and Quotex, two solid choices for binary options trading.

In this analysis, we will explore various crucial aspects which include the payout, license, foundation year, deposit type and so much more. Through this detailed overview, you will be able to evaluate the differences and similarities between these two brokers and make an informed decision for your trading needs.

Read on to find out which of these two brokers best suits your preferences and investment goals.

1. How to log in / Links

It should be noted that some countries restrict access to binary options brokers, depending on the regulations. 

The link for Pocket Option as of today is   https://po7.cash/smart/NBsHaX7rcA7Oqj . 

Note the “po7” part. This is updated according to needs, therefore in case of non-functionality of the link change with “po8” or “p9” etc.

The most recent link for Quotex is  http://Qxbroker.com/?lid=13735

In case of lack of access to the platform, use a VPN, even a free one, as recommended by the broker himself.

1. Payouts

Pocket Option claims a payout of up to 96% for binary options. However, it is important to note that the actual payout may vary depending on trading activity and market conditions.

Quotex claims payouts of up to 95% for binary options. As with Pocket Option, the actual payout may vary based on market circumstances and trading activities.

2. License

Pocket Option is a brand managed by Gembell Limited, a company registered at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands, and is regulated by the International Financial Market Relations Regulation Center (IFMRRC).

Quotex: Quotex is a brand operated by the company Quotex Limited, regulated as a Pocket regulated by the IFMRRC, a license which provides some protection to traders, however it may not be at the level of licenses provided by more well known financial regulators.

3. Year of foundation

Pocket Option was founded in 2017. It is relatively new in the binary options sector compared to some ESMA regulated brokers, which however are now reserved for professionals with high capital

Quotex was founded in 2020, so it is also a relatively young broker in the binary options market.

4. Type of Deposit

Pocket Option offers several deposit methods, including credit/debit cards, e-wallets (e.g. Skrill, Neteller) and cryptocurrencies such as Bitcoin. This provides traders with several options for depositing funds into their account. Methods may vary depending on the broker’s policies. 

5. Expiry of the trade

Quotex also offers a variety of deposit options, such as credit/debit cards, e-wallets and cryptocurrencies. The exact methods, as with Pocket, may vary depending on your geographic region and broker policies.

Pocket Option offers a variety of expiries for binary options, including short-term expiries (from 1 minute) and long-term expiries (up to 4 hours). This allows traders to select the expiration option that best suits their trading strategies.

Quotex offers a choice of expirations for binary options, which include short-term expiries (from 30 seconds) and long-term expiries (up to 5 minutes). Again, you can select your desired expiration option based on your trading preferences.

6. Types of options

Pocket Option offers a wide range of binary options types, such as classic binary options, long term binary options, short term (turbo) binary options and touch/no-touch binary options. This diversity of options allows traders to take advantage of a wider range of trading strategies.

Quotex also offers a variety of binary options types, including classic binary options, high yield binary options, short term (turbo) binary options, and touch/no-touch binary options. Traders have the ability to choose the type of option that best suits their needs and trading strategies

7. Trading Platform and Tools

Pocket Option provides an intuitive and user-friendly trading platform. It also offers a number of additional tools, such as technical indicators, advanced price charts, and a social trading feature that allows traders to follow and copy the trades of other traders.

Quotex offers a modern and easy to use trading platform. The platform includes technical analysis tools, interactive charts and social trading features, allowing traders to connect with other users and share trading strategies.

8. Minimum deposit and minimum trade

The minimum trade amount on Pocket Option starts at $1 or the equivalent in other currencies. Pocket Option requires a minimum initial deposit to open a trading account starting at $50 or the equivalent in other currencies.

At Quotex the minimum deposit is only $10 or the equivalent in other currencies

CONCLUSION: Quotex vs Pocket Option

It may be useful to go into detail to give even more complete information to those who are preparing to choose one of the two brokers

Comparison between Pocket Option and Quotex: Discover the differences

1. Minimum Deposit:
   The minimum deposit represents the amount required to start trading. In this case, Quotex is cheaper than Pocket Option as it only requires a minimum investment of $10, while Pocket Option requires $50 as a minimum deposit.
2. Bonus:
   The welcome bonus is a gift offered to traders when making their first deposit. Quotex offers a more generous bonus, up to $105, compared to Pocket Option which only provides 50% of the deposit value as a bonus.
3. Margin Trading:
   Margin trading involves using borrowed money to buy stock through the broker. Pocket Option supports this feature, allowing users to engage in margin trades, while Quotex does not offer the ability to trade stocks.
4. Automatic trading:
   Automatic trading allows you to execute buy or sell orders automatically, based on specific settings or programs. Pocket Option supports this feature, allowing traders to automate their trades. In contrast, Quotex does not offer automated trading.
5. Trading Signals:
   Trading signals provide traders with information based on asset analysis and market conditions. Quotex offers trading signals, however, they are not available on demo accounts. Pocket Option, on the other hand, allows the use of trading signals on both demo and real accounts.
6. Copy-trading:
   Copy-trading is a useful option for new traders, as it allows them to copy the strategies of experienced traders and profit from them. Quotex supports copy trading, but this feature is not available on demo accounts. Pocket Option, on the other hand, allows copy-trading on both demo and real accounts.
7. Cryptocurrencies:
   Cryptocurrencies are digital assets, such as BTC (Bitcoin) and LTC (Litecoin). Pocket Option offers five different cryptocurrencies to choose from, while Quotex only supports major cryptocurrencies such as Bitcoin and Litecoin.

CONCLUSION: Quotex vs Pocket Option

Both Quotex and Pocket Option offer good services for binary options trading.

Quotex, despite being a newer broker, offers a wide range of services and greater transparency in payments thanks to the payout percentage known from the beginning.

Pocket Option, on the other hand, has many resources and special options, ensuring the safety of deposits and withdrawals.

Online reviews seem to give Quotex a slight edge, especially for the variety of options on offer. However, it is advisable to conduct thorough research and try out the demo platforms to determine which broker offers the features that best suit your needs.

Always remember to start with a demo account before placing real trades.

Try the demos or evaluate the platforms directly:

_____________________________

Questions about trading? Try AI, Artificial Intelligence
(Robot bottom right)

Below you can see the brokers most used by our traders.  they have been selected based on the number of registrations and trading operations. In addition to these, you can view the complete list of brokers with relative comparison.

Visit our Italian website ForzaForex.it (translator option in many languages) full of free indicators, strategies and unique resources!

By registering through these links you get preferential assistance, various free resources and the possibility of free access to the VIP signal room. Clear cookies before visiting a broker. Send your ID, teh identification number that the broker assigns you, to info@freebinaryoptions.one.

Risk warning: "Binary options are not promoted or sold to retail EEA traders" If  the broker is not authorized in your area, e.g. IQ Option  (Eurozone / Usa), you can choose from our Broker Comparison (reliable brokers who accept traders from all over the world, following image):

 

Do you use Google Chrome? Here is a free VPN extension!            

Discover a free VPN extension that enhances your browsing experience while optimizing security! Block ads and enjoy seamless access to restricted websites with VeePN, the recommended choice even among binary options brokers in Europe.

VeePN  features

With over 2500 servers worldwide and a high-speed server network, you can browse securely and effortlessly. Say goodbye to ads, trackers, and malware with VeePN’s efficient blocking capabilities.

Additionally, you can spoof your browser’s location, time, and language to further enhance privacy. The extension also provides automatic protection for your personalized website list.

Recommended by brokers

Even binary options brokers who have limited access in Europe recommend surfing with a VPN (Virtual Private Network, individual private network). VeePN is a free VPN extension!

With VeePN, you can unblock access to websites and browse securely even on platforms like Quotex , Pocket Option and more.

Preserve your privacy

Protect your privacy with VeePN’s servers, which provide you with a new IP address.

By concealing your location and safeguarding your personal data, VeePN ensures your safety from fraud and hackers. 

Access geo-blocked content
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VeePN  is the ideal VPN service for Chrome

VeePN is fast, highly secure and simple to use to protect your  online privacy . Enjoy  unlimited traffic and unlimited bandwidth  with VeePN!

Do you want a valid and free alternative? Opera VPN

_____________________________

Questions about trading? Try AI, Artificial Intelligence
(Robot bottom right)

Below you can see the brokers most used by our traders.  they have been selected based on the number of registrations and trading operations. In addition to these, you can view the complete list of brokers with relative comparison.

Visit our Italian website ForzaForex.it (translator option in many languages) full of free indicators, strategies and unique resources!

By registering through these links you get preferential assistance, various free resources and the possibility of free access to the VIP signal room. Clear cookies before visiting a broker. Send your ID, teh identification number that the broker assigns you, to info@freebinaryoptions.one.

Risk warning: "Binary options are not promoted or sold to retail EEA traders" If  the broker is not authorized in your area, e.g. IQ Option  (Eurozone / Usa), you can choose from our Broker Comparison (reliable brokers who accept traders from all over the world, following image):

 

Even if you are not familiar with programming metatrader indicators by reading this article you will be amazed at what AI can do!

Here we report the chat with AI

FreeBinaryOptions: If I give you an MQL4 indicator with arrows with his script, can you tell me how many positive signals I got in the past?

AI: As a text based language model, I don’t have the ability to directly execute MQL4 code or any other programming language. However, I can give you general guidance on how you might calculate the number of positive signals generated by an MQL4 script in the past.

To calculate the number of positive signals generated by an MQL4 script in the past, you should follow these steps:

1. Open the MQL4 script code which gives you the arrow indicators.
2. Identifies the logic used in the script to generate signal arrows.
3. Determines the condition or conditions that are evaluated to generate a positive arrow.
4. Using the same logic and conditions, loop through your financial instrument’s historical data (for example, closing prices) to determine when the conditions have been met to generate a positive arrow.
5. Increments a counter each time a positive condition occurs during the historical data cycle.
6. At the end of the cycle, the counter value will represent the number of positive signals generated in the past.

Remember that this is just a general explanation of how you might go about calculating the number of positive signals in the past using an MQL4 script. However, the specific logic and implementation will depend on the indicator and script you are using. Make sure you are familiar with the code and adapt it to your specific needs.

If you need specific assistance in the MQL4 indicator code, it would be helpful to include the indicator code in your message, so that I can provide you with more specific support.

FreeBinaryOptions: Well, here is the code of my indicator

/* forzaforex.it */ #property indicator_chart_window #property indicator_buffers 3 #property indicator_color1 Green #property indicator_color2 Red #property indicator_color3 Orange extern bool Sound_Alert = TRUE; double G_ibuf_80[]; double G_ibuf_84[]; // int init() { SetIndexStyle(0, DRAW_ARROW, EMPTY, 4); SetIndexArrow(0, 221); SetIndexBuffer(0, G_ibuf_80); SetIndexEmptyValue(0, 0.0); SetIndexStyle(1, DRAW_ARROW, EMPTY, 4); SetIndexArrow(1, 222); SetIndexBuffer(1, G_ibuf_84); SetIndexEmptyValue(1, 0.0); return(0); } // int deinit() { return (0); } // int start() { double Lda_0[2]; Comment(“FYI: https://www.forzaforex.it/indicator-non-repaint https://www.freebinaryoptions.one/no-repaint-indicator-alert-arrows/”); double iatr_4 = iATR(Symbol(), 0, 50, 1); for (int index_12 = 0; index_12 < Bars; index_12++) { G_ibuf_80[index_12] = 0.0; G_ibuf_84[index_12] = 0.0; for (int index_16 = 0; index_16 < 2; index_16++) Lda_0[index_16] = iRSI(Symbol(), 0, 14.0, PRICE_CLOSE, index_12 + index_16); if (Lda_0[0] > 25.0 && Lda_0[1] < 25.0) G_ibuf_80[index_12] = Low[index_12] – iatr_4 / 2.0; if (Lda_0[0] < 75.0 && Lda_0[1] > 75.0) G_ibuf_84[index_12] = High[index_12] + iatr_4 / 2.0; } if (G_ibuf_80[2] == 0.0 && G_ibuf_80[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0 ]) Alert(“Arrow Signal Call”); if (G_ibuf_84[2] == 0.0 && G_ibuf_84[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0] ) Alert(“Arrow Signal Put”); return(0); index_12 + index_16); if (Lda_0[0] > 25.0 && Lda_0[1] < 25.0) G_ibuf_80[index_12] = Low[index_12] – iatr_4 / 2.0; if (Lda_0[0] < 75.0 && Lda_0[1] > 75.0) G_ibuf_84[index_12] = High[index_12] + iatr_4 / 2.0; } if (G_ibuf_80[2] == 0.0 && G_ibuf_80[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0 ]) Alert(“Arrow Signal Call”); if (G_ibuf_84[2] == 0.0 && G_ibuf_84[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0] ) Alert(“Arrow Signal Put”); return(0); index_12 + index_16); if (Lda_0[0] > 25.0 && Lda_0[1] < 25.0) G_ibuf_80[index_12] = Low[index_12] – iatr_4 / 2.0; if (Lda_0[0] < 75.0 && Lda_0[1] > 75.0) G_ibuf_84[index_12] = High[index_12] + iatr_4 / 2.0; } if (G_ibuf_80[2] == 0.0 && G_ibuf_80[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0 ]) Alert(“Arrow Signal Call”); if (G_ibuf_84[2] == 0.0 && G_ibuf_84[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0] ) Alert(“Arrow Signal Put”); return(0); & G_ibuf_80[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0]) Alert(“Arrow Signal Call”) ; if (G_ibuf_84[2] == 0.0 && G_ibuf_84[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0] ) Alert(“Arrow Signal Put”); return(0); & G_ibuf_80[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0]) Alert(“Arrow Signal Call”) ; if (G_ibuf_84[2] == 0.0 && G_ibuf_84[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0] ) Alert(“Arrow Signal Put”); return(0);

AI: Thanks for providing the MQL4 indicator code.

Analyzing the code, it appears that the indicator generates signal arrows for both BUY (CALL) and SELL (PUT) signals based on the conditions of the RSI indicator.

To determine the number of positive signals in the past, you would need to make some code changes. Here’s how you can proceed:

1. Add a counter variable at the beginning of your code to track the number of positive signals. For example, you can declare a variable called “positiveSignals” and set it to zero:

arduinoCopy codeint positiveSignals = 0;

2. In the loop forthat iterates through the historical data, just after the lines G_ibuf_80[index_12] = 0.0;and G_ibuf_84[index_12] = 0.0;, add the check to see if a positive signal has been generated. You can do this by using the conditions you’ve identified for the positive signal arrows. For example, for the CALL signal, you can add:

cssCopy codeif (G_ibuf_80[index_12] > 0.0) {
   positiveSignals++;
}

3. At the end of the loop, after the loop for, you can print the number of positive signals generated in the past using the function Print:

mathematicaCopy codePrint("Numero di segnali positivi nel passato: ", positiveSignals);

4. Now, when you run the indicator on the chart, it will display the number of positive signals generated in the past in the MetaTrader output window.

I remind you that this code only provides the count of positive signals in the past, but if you need more detailed analysis or specific processing on the signals, you may need to make more code changes or write more complex logic.

Remember to compile the indicator again after making the changes and test it on historical data to verify the correctness of counting positive signals.

FreeBinaryOptions: can you make these changes directly to me and give me the new code?

Beginning of the code that is sending…

Certainly! Here is the modified code of the MQL4 indicator with the changes described above:

/* forzaforex.it */ #property indicator_chart_window #property indicator_buffers 3 #property indicator_color1 Green #property indicator_color2 Red #property indicator_color3 Orange extern bool Sound_Alert = TRUE; double G_ibuf_80[]; double G_ibuf_84[]; // int init() { SetIndexStyle(0, DRAW_ARROW, EMPTY, 4); SetIndexArrow(0, 221); SetIndexBuffer(0, G_ibuf_80); SetIndexEmptyValue(0, 0.0); SetIndexStyle(1, DRAW_ARROW, EMPTY, 4); SetIndexArrow(1, 222); SetIndexBuffer(1, G_ibuf_84); SetIndexEmptyValue(1, 0.0); return (0); } // int deinit() { return (0); } // int start() { double Lda_0[2]; Comment("FYI: https://www.forzaforex.it/indicatore-non-repaint https://www.freebinaryoptions.one/no-repaint-indicator-alert-arrows/"); double iatr_4 = iATR(Symbol(), 0, 50, 1); int positiveSignals = 0; // Variabile contatore per i segnali positivi for (int index_12 = 0; index_12 < Bars; index_12++) { G_ibuf_80[index_12] = 0.0; G_ibuf_84[index_12] = 0.0; for (int index_16 = 0; index_16 < 2; index_16++) Lda_0[index_16] = iRSI(Symbol(), 0, 14.0, PRICE_CLOSE, index_12 + index_16); if (Lda_0[0] > 25.0 && Lda_0[1] < 25.0) { G_ibuf_80[index_12] = Low[index_12] - iatr_4 / 2.0; positiveSignals++; // Incrementa il contatore dei segnali positivi } if (Lda_0[0] < 75.0 && Lda_0[1] > 75.0) G_ibuf_84[index_12] = High[index_12] + iatr_4 / 2.0; } if (G_ibuf_80[2] == 0.0 && G_ibuf_80[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0]) Alert("Arrow Signal Call"); if (G_ibuf_84[2] == 0.0 && G_ibuf_84[1] != 0.0 && Open[0] == Low[0] && Open[0] == High[0] && Open[0] == Close[0]) Alert("Arrow Signal Put"); Print("Numero di segnali positivi nel passato: ", positiveSignals); // Stampa il numero di segnali positivi return (0); }

The changes were made inside the function start(), where I added the variable positiveSignalsfor counting positive signals and incremented its value when a positive signal is generated.

I recommend that you compile the indicator again in your MetaEditor and test it on a chart to see the number of positive signals generated in the past in the MetaTrader output window.

Conclusion

Even without particular experience on our part, Artificial Intelligence can be of great help in trading. The possibilities are endless.

_____________________________

Questions about trading? Try AI, Artificial Intelligence
(Robot bottom right)

Below you can see the brokers most used by our traders.  they have been selected based on the number of registrations and trading operations. In addition to these, you can view the complete list of brokers with relative comparison.

Visit our Italian website ForzaForex.it (translator option in many languages) full of free indicators, strategies and unique resources!

By registering through these links you get preferential assistance, various free resources and the possibility of free access to the VIP signal room. Clear cookies before visiting a broker. Send your ID, teh identification number that the broker assigns you, to info@freebinaryoptions.one.

Risk warning: "Binary options are not promoted or sold to retail EEA traders" If  the broker is not authorized in your area, e.g. IQ Option  (Eurozone / Usa), you can choose from our Broker Comparison (reliable brokers who accept traders from all over the world, following image):

 

Candlestick patterns (or figures) are popular tools for asset analysis. By looking at different patterns, traders can  spot potential trend reversals and choose the optimal time to enter or exit a trade.

There are tons of candlestick patterns, as you will know if you’ve done some research, and this could get confusing. You’ve probably desisted from using them.

We try to be practical, limiting ourselves to some that are considered more effective, accompanied by some examples to understand how to use them in trading. 

Let’s start from the basics to review the main concepts.

What is a candle in trading

Candlestick patterns are formed by a combination of candlesticks , displayed in the charts of the trading platform.

The main parts of the candle are the body , the upper shadow and the lower  shadow.

The body of the candle indicates whether the closing price is higher (green candle) or lower (red candle) than the opening price . In some platforms, such as Metatrader for example, the colors of the candles can be changed according to your preferences

A candlestick shows the price changes of an asset (e.g. Eur/Usd) over a certain period of time. For example, if a trader chooses the 15 minute period, a candlestick will show data for the last 15 minutes.

The candle’s shadow displays the highest and lowest prices touched during this period.

Candlestick patterns for trading

Candlestick trading involves identifying candlestick patterns and possibly using them to understand market behavior. Since there are numerous patterns, here are the main ones to get you started.

The hammer

It is a bullish pattern that could indicate an imminent trend reversal. It could appear in the final stage of a downtrend and indicate the lowest price before a bounce. 

When a candlestick’s lower shadow at the end of a downtrend is  at least twice as long as the body , a hammer pattern can be observed.

To confirm the pattern, the next candlestick should close above the body of the previous candlestick. 

.This approach is not 100% accurate, so traders should consider the potential risks carefully before making their move. To get further confirmation of the trend reversal when trading candlestick patterns, you can apply some technical indicators, such as the MACD or RSI .

Pattern Engulfing

Two types of patterns depending on whether the trend is down or up.

BEARISH ENGULFING PATTERN

This pattern can occur at the end of an uptrend and  indicate the following price decline . It is a long red candle enclosing a smaller green candle that preceded it. 

You can evaluate how long the red candle is compared to the green one.

If this contains the entire body of the previous candle, it may be sufficient to indicate a probable trend change. However, if it breaches not only the body of the green candle but also its upper and lower shadows, it could be a sign of an impending strong trend reversal. 

BULLISH ENGULFING PATTERN

Similar to the bearish pattern, this one is formed by a larger candle engulfing the previous smaller one. In this case, at the end of a downtrend, the first red candle appears. The second one is green and should cover the entire body of the previous candle.

The bullish engulfing pattern could  indicate an impending trend reversal , which could present potential trading opportunities. However, as with any technical analysis tool, there is no guarantee that the prediction will come true. For this reason it is good to seek further confirmations.

Harami

To remember the pattern, the meaning of the name that comes from the Japanese word meaning “pregnant” comes in handy because the graphics it shows resemble a pregnant woman.

HARAMI BEARISH

This pattern consists of a small red candle following a larger green candle . It doesn’t provide much insight into the direction of a potential trend reversal. However, it could indicate an impending change in direction.

If the price continues to rise after observing this pattern, the uptrend could last. Conversely, if the Harami pattern is followed by a bearish candlestick, the price may continue to fall.

HARAMI BULLISH

Traders can see this pattern in the late stages of a downtrend when a large red candle is followed by a smaller green one. Like the bearish Harami, it can indicate two possibilities: the continuation of a downtrend or a potential reversal. To confirm the reading, traders should pay attention to the candle following the pattern. Whether it continues to rise or fall, it could indicate a lasting trend or a possible reversal.

i. It happens that some traders tend to overlook them, assuming that the recent direction will continue shortly and not expecting major changes. So if a reversal bounce occurs , it may be sudden. To keep in mind.

Three white soldiers

This pattern consists of three long bodied green candlesticks following a downtrend. They appear one after another.

If you observe this pattern, it could offer an opportunity to  take a bullish position . To get more precision, traders can use the three white soldiers pattern in conjunction with other technical tools, such as trendlines and indicators.

Three Black Crows 

This is called the opposite pattern with 3 red candles.

Some time ago we also created a strategy on this pattern of the Three Black Crows  which also deals with the case of the Three White Soldiers.

Three Inside Up

It is a bullish reversal pattern that consists of a combination of three consecutive candlesticks. The first is a large red candle, the second is a smaller green candle that opens and closes within the body of the first. The third candle is also green, closing above the previous candle.

Three Inside Down

This pattern is the opposite of the previous one, made up of three consecutive candles. In this case, a large green candlestick is followed by a smaller red one, contained within the body of the first candlestick. The pattern is completed by a longer red candle which closes below the second one.

Keep in mind that these two candlestick patterns could be considered short-term and do not guarantee big trend changes. However, they can be useful when looking for price movements that could potentially  lead to significant trend reversals .

Does candlestick trading work?

The idea behind this method of technical analysis is that price movements are not random. As a result, traders can  spot specific patterns.  You can decide to trade candlestick patterns for a variety of assets.

There are a few indicators that traders should pay attention to. For example, when you see a long green candle , this could be an uptrend signal. In the case of a long red candle , it could be the start of a downtrend. However, it is always advisable  to use other analysis tools to support these findings , as candlestick patterns alone can be misleading. Traders can use indicators to check their analysis and make an informed decision.  

It is also important to remember that candlestick patterns are  formed by past and current price swings . This means that they cannot accurately indicate future price changes.

Conclusions

The combinations of candlesticks form patterns that traders can analyze to confirm their predictions of price movements.

Different candlestick patterns can indicate potential trend reversals, bullish or bearish, which can offer trading opportunities.

However, it is preferable to use candlestick patterns in conjunction with other technical tools to get more accurate readings. 

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