Third Candle Strategy for Binary Options

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Third Candle Strategy

The “Third Candle” strategy is a principle of forecasting the market for binary options trading which uses a combined signal based on the signals from the standard MA trend indicator and patterns of quote building. This format of analysis allows you to open trading bets on the binary market at the most favorable price positions and leads to regularly positive expiration outcomes for up to 85% of your binary contracts. Such performance statistics for the “Third Candle” trading system make it possible to achieve growth dynamics for your trading profit at the level of at least 200% in a week.

The “Third Candle” strategy – technical requirements

Using this system on the binary market will require the use of a high-tech, professionally equipped trading terminal offering the following list of services:

  • The availability of an indicator set
  • Quote building in the form of Japanese candles
  • A service for configuring the timeframe of the operating chart
  • High-precision quotes
  • Contracts with high profitability
  • High speed trading operations
  • The minimum trading conditions

On this issue, we offer our professional advice – we suggest carrying out your binary trading processes on the resource of the licensed Binomo broker, which offers the optimal trading conditions and a terminal with all the necessary services and instrumentation:

  • A set of high-precision indicators integrated into the platform
  • “Japanese candles” mode for chart building
  • A range of available timeframes – from 5 seconds to 5 minutes
  • The most accurate quotes
  • Level of bet liquidity – 87%
  • Speed of trading operations – 1.7 ms
  • Trading condition parameters – the initial cost of a contract is 1 dollar, the amount of an account starts at 10 dollars

So, the “Third Candle” strategy uses for forecasting an automatic algorithm that determines the average figures for asset price and trend direction – the MA indicator in its standard configuration. As a signal pattern for registering bets on the market, the strategy uses patterns of market movement at moments of asset quote breakthrough of the technical moving average of the MA indicator. This pattern is the return of the price of the underlying asset to the level of the indicator after its breakthrough, which, in 85% of cases, occurs on the third candle after the breakthrough of trading quotes. In practice it looks like this:

The rules for registering bets on the signals of the forecasting system are quite simple. For a trading operation with a bet UP, it is necessary to wait for the moment of the asset quote’s breakthrough of the indicator’s moving average upwards, and on the opening of the third candle following the breakthrough, we open a trading contract:

We carry out operations with options DOWN when the pattern forms in the opposite way: the price of the asset breaks through the level of the MA indicator downwards; on the opening of the third candle of trading quotes we register the contract:

After studying the history of the market, you can notice the high cyclicality of the formation of the pattern of the “Third Candle” strategy, as well as the accuracy of the forecasts that it forms.

Expiration and money management

When determining the optimal expiration range for profitability and trading efficiency, follow a simple rule – after registering a bet on trading quotes, at least 5 candles should be formed. That is, on the technical timeframe M1 this expiration range will be 5 minutes. An important caveat – do not use this strategy on minimal timeframes where quotes have the highest dynamics of candlestick building. In this format, the level of market forecastability is significantly reduced, which will not allow you to obtain stable positive trading results. The optimal timeframes for trading are M1 and M5.

A secure mode of risk management for trading on the “Third Candle” strategy is achieved through the use of trading bets with the minimum amount of funds involved. For initial-size accounts, we use bets of $1; for trading accounts with large amounts of funds, we use bets with risk limited to the level of 5% of the amount of capital.

3# 3° Candle Binary Options High/Low Stategy

Binary Options High/Low

Submit By Janus Trader 03/06/2020

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  • Binomo
    Binomo

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Time Frame 15 min or higher.

Binary options Strategy Rules

1. Find the third candle

2. Enter your trade at the start of the third

candle and wait that candle closed.

-Identify the current trend.

(For example: use 50SMA or 100sMA to

identify the current trend. If the price is above

the SMA – the current trend is up or opposite)

You may also use a Stochastic indicator with

parameters 5.3.3 to filter your trades. If the

direction of the stochastic is opposite of your 1st

and 2nd candles it is better not to trade at that

moment and wait for the next “1st candle figure”.

-Open a 60 min chart or other time Frame and find the “first

“ The First Candle” is between two

candles, and it is the highest or the lowest of

those three candles.

Look at the chart below:

The 1st candle is located between two candles

and it is the highest (or lowest ) of the 3.

-Now if you look to the right of the 1st candle is

the 2nd candle and the next is the 3rd candle –

the most important for us. This system based

on the 3rd candle.

If look on your chart you will see a lot of “three

candles figures” and all of them are great

Binary Options strategy: Trades

We BUY at the very beginning of the 3rd candle

if the current trend is up and your candles

figure is going up

We SELL very beginning of the 3rd candle if the

current trend is down and your candles figure

There is ALWAYS an opportunity to make a win trade.: all you have to do is to open few pairs charts and you will always find your 3 candles on

When not to trade

– do not trade 1 hour before and after

major news or big events

– when the 3rd candle is against the current

– when the second candle closes “inside” the

This also a scalping system ( 3° Candle Scalping system) with this exit setup:

Your target is 10 pips. You can also try to use a

trailing stop order to maximize your profit.

Stop loss needs to be placed above or below

the second candle: If you BUY – place a stop 1

pip below the 2nd candle, if you SELL – place a

stop 1 pip above the 2nd candle.

This Scalping system can be used with higher time frame.

In this case make sure to set your take profit

target more than 10 pips.

Share your opinion, can help everyone to understand the Binary strategy.

Scapling, Marathon and 3 Candle

60 second binary options strategy is based on the same trading principles as the rest of the strategies. The only and main distinction is its expiration time – only 1 minute.

Binary options 60 seconds first appeared on the West yet nowadays this instrument of making money is very popular worldwide.

60 Second Options Advantages

– frequency of deals lets traders make 60 deals in just 1 hour;

– certain competition among brokers makes them offer traders very profitable conditions. Traders even have an opportunity to select volatility;

– binary options profitability and potential income. Money starts coming within 60 seconds;

Scalping

60 second options are very suitable for scalping as it enables a trader to make many deals with an average profit yet with the time such strategy will lead to considerable gains.

To make this strategy really work, you will need to find market signals which demonstrate the dynamics of the trend. No matter if it is positive or negative – the main idea is stability. As soon as you find such signals, you will be capable of making deals in a row with only 1 minute interval.

The only minor risk here is that even if the dynamics is completely positive, you might still lose because of trend fluctuations that are always presented on the market. Yet in the majority of cases, having “caught the wave”, traders gain large profits. Always remember, according to scalping strategy, and swing trading strategies you will need to learn to feel the signals of the market and react as a consequence.

Marathon

Binary options strategy Marathon is based on the principle that trend has a tendency to save and keep its average dynamics and not change its direction.

To make the strategy work, you will need such indicators as moving average and MACD. Moving average is needed to determine the real signals of the market because it is pretty hard to separate general market dynamics from constant fluctuations. Therefore it makes sense to make from 5 to 10 periods for short-term tracking of the dynamics.

MACD indicator is necessary for avoiding and reducing cons of moving average yet saving its pros. MACD offers traders different signals (increase / decrease of the price) about dynamics according to this or that asset.

All in all investing in binary options using Marathon strategy it is necessary to find the dynamics of the trend.

3 Candle

One more effective strategy for trading binary options 60 seconds is called “3 Candle”. Binary options buying with this particular strategy has a non-standard character and comes to the point of investing in binary options on the third candle after receiving signals from trading systems indicators.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Good Choice for Beginners!
    Free Trading Education, Free Demo Account!
    Get a Sign-Up Bonus Now!

  • Binomo
    Binomo

    2nd in our ranking!

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