Candlestick Pattern Trading Strategy IQ Option – How to make $50 per hour from home in UAE?
Most of the traders opening a trading account lose money and stop trading almost immediately after losing money. There are two reasons for this –
- They don’t know how to trade profitability,
- They don’t know how to trade at all.
And, sadly, the traders leave the trading platform after losing money.
Here is a strategy that can help you trade better and make $50 per hour in UAE – Candlestick Pattern Trading Strategy
There are many easy to use trading strategies that have the potential of making money online by trading with platforms like IQ Option, and Binomo. Will you like to consider trying them by opening an account?
Let us see the Candlestick Pattern trading strategy and its potential to make $50 per hour in UAE.
What is the Candlestick pattern strategy, and how to use it with IQ Option or Binomo?
Out of hundreds of trading strategies, this one is simple to use and less talked about strategy. But it is more powerful than other complicated strategies and has excellent potential for success. You can check out our different strategies like MACD Strategy and Quick Reversal Strategy.
The Candlestick pattern strategy is simple to follow. It involves identifying the formation of typical candlestick patterns. The trader should trade only when they see such patterns, otherwise, no trading recommended.
In this Candlestick strategy, we look for the formation of a candlestick (RED or GREEN) which is of a different color than the two previous candles and tits size is bigger than the previous two candles.
To begin with this trading strategy and start trading, the first thing you need is access to an online trading platform. Sign up with any of the trading platforms below –
2. Configure the chart for Candlestick Pattern Strategy
After logging in into the trading platform, you will find either an Area Chart or a Candlestick Chart. If you find any other chart, switch to Candlesticks Chart by clicking Japanese Candlesticks. You can select the Candlestick charts by clicking on the Candlestick symbol on the IQ Option platform, as shown in the below screenshot.
Select the Candlestick chart by clicking the Candlesticks symbol, as shown in the above image.
After you have selected the Candlesticks chart, now it is time to set the time frame to 5 minutes in the chart. Select 5 minutes chart by clicking 5 minutes time period, as shown in the image below.
The trade expiry time should be 10 minutes or 15 minutes while using this strategy. While trading on the IQ Option platform, select the expiry near to 10 or 15 minutes. Similarly, you can select the nearest 15 minutes expiry while trading with Binomo.
3. Identify the Candlestick pattern and place your trade
How to find the right Candlestick pattern setup and enter a BUY or SELL position?
The series of the Green and the Red candles in the above images indicate the price of the underlying asset, i.e., EUR/USD. A green candle indicates that the price has gone up and a red candle means that the price has gone down. When several candles of the same color form in continuation, it indicates a trend. The trend is positive (Bullish) if a series of green candle forms; the trend is negative (Bearish) if a series of red candles formed.
The candlestick pattern trading strategy is based on analyzing the color and size of the candles. There are a few typical formations that indicate a potential trading opportunity. We discuss all these candlestick formations below –
Downtrends – Selling opportunity
1. Downtrend formation Type 1
When a Red Candle covers the body of the previous one or two candles as shown below. It is a SELL signal.
2. Downtrend formation type 2
When two small red candlesticks have covered the previous green candle. This indicates a downtrend and a SELL Signal.
3. Downtrend Type 3
When two red candlesticks of different sizes have covered the previous green candle. This indicates a downtrend and a SELL Signal.
Uptrends – Buying opportunity
Uptrend Formation Type 1
When a green candle is formed and it covers the size of the previous 1 or two red candles, it is an uptrend. This gives a BUY Signal.
Uptrend Formation Type 2
When two green candlesticks together cover the size of the previous red candle, it is an uptrend. This gives a BUY Signal.
Uptrend Formation Type 3
When a green candle is formed which covers the size of the previous red candle, it is an uptrend. This gives a BUY Signal.
How to open a profitable trade based on the above Candlestick patterns?
You must wait until you find a Red or Green candlestick formation, as shown above. Then place a trade with an expiry of at least equal or double the candlestick time-frame. In this example, we have set the candlestick to a 5 minutes time-frame. Hence the trades should have an expiry of 5 min, 10 min, or 15 minutes.
How to make $50 per hour using the candlestick pattern strategy?
The above strategy has the potential to make you $50 per hour if followed carefully. You must always stick to the strategy while trading. The step to follow are as follows –
- Open a trading account with IQ Option or Binomo
- Fund your account with $200 or more
- Strictly follow the strategy on four currency pairs
- Trade only when you find a pattern as shown above
Make sure that the candlestick timeframe is set to 5 minutes or more. Place the trades with expiry equal or double the chart timeframe.
Risk Warning: The information provided here does not constitute a recommendation to carry out business or investment. While using the information provided here, you are solely for your decisions and assume all the risks associated with the financial result of such transactions. We may have an affiliate agreement with the brands or companies mentioned here.