Short-Term Reversal Strategy (85% ITM+ Win RATE)

Wednesday, September 2nd, 2015

Hey guys, It’s Snir Yamin and today I’m going to introduce my new Short-Term Reversal Strategy for binary options. I started to use this strategy lately on Michael Freeman’s Binary Option Facebook Group, with no less that 85% win rate. To apply this strategy we’re going to use a naked 1-minute chart. No indicators needed, only price action analysis. Can it be more simple? Let’s get started and I’ll show you how you can do it yourself!

Short-Term Reversal Strategy for Binary Options by Snir Yamin

Instructions For CALL trades:

We will trade the short-term reversal on the current trend of the asset. The first condition is that we need to see a clear downtrend during the last 2 hours on the 1-minute chart! Once founded, we’re going to place a CALL trade for up to 10 min expiry, on the lowest price of the current trend. See AUD/USD example below:

Short-term Reversal Illustration (AUD/USD currency Pair)

short-term-reversal1

Instructions For PUT trades: 

We will trade the short-term reversal on the current trend of the asset. The first condition is that we need to see a clear uptrend during the last 2 hours on the 1-minute chart! Once founded, we’re going to place a PUT trade for up to 10 min expiry, on the highest price of the current trend. See EUR/GBP example below:

Short-term Reversal Illustration (EUR/GBP currency Pair)

short-term-reversal2

For the most accurate results I recommend trading this strategy during the early London hours (07:00 – 10:00 GMT) and during the early New York hours (12:00 – 15:00 GMT). The reason is that during those hours you can take the market’s volume to your advantage. If you follow my short-term reversal strategy based on tips in this article, you can definitely reach over 70 percent ITM and ideally above 80 percent as I’ve been getting with my trades. I welcome questions by members who are planning to put this to the test, use a demo account or ‘paper-trade’ for a little while until you get better and then hopefully you will manage to enjoy the fruits of your efforts with a live account. Either way, I am a top admin at Mike’s FB Signals Group and as always, I make sure to provide our members with quality signals and on a daily basis. Statistics over a long period of time only because more accurate and I am glad to see myself as one of the top traders in this amazing community, on this note I should also welcome you to join us. 

Join Mike’s Signals Group & Trading Community 

It’s amazing to see a lot of support for the group by other websites that are not associated with Michael Freeman, we’re growing and many traders and webmasters are now pointing members to the right conclusion! We are the best community online, it’s free, we generate a high ITM rate, Nadex traders can join us, once you’re in you can also invite your friends without any requirement and don’t forget that Mike hands out bonuses to active traders who manage to generate a high ITM. To sum it up, I encourage you to test this Short-Term Reversal Strategy wisely by not trading real money when you start, even if you might think that you have fully understand my instructions and the over-all concept. I wish you all the best and good luck with your trading!

Complete List of Mike’s Binary Options Indicators & Strategies

We don’t have an advertising program, yet many websites are supporting the efforts to make this group the leading and fastest growing FB signals group online. Many thanks to the following websites for your great support:

Lemon Binary SignalsObjectiveBinaryOptions.com, MikesBinarySignals.comBinaryoptionsEliteClub.com

All pointing out that we’re an amazing place for binary options traders. You can also find amazing testimonials by our group members on Michael Freeman’s YouTube channel.

Share your feedback or questions  in reference to my short-term reversal strategy or our FB signals community!

EMA’s Trend Following Strategy by Snir Yamin

Saturday, August 29th, 2015

Saturday, August 29th, 2015 Snir Yamin

Hey guy, It’s Snir Yamin from Mike’s Facebook Signals Group and today I’m going to cover a new strategy that I recently started to use, I called it EMA’s Trend Following Strategy. Let’s jump straight to business, no time for fluff! To apply this strategy we are using the following indicators:

1) 365 EMA (Blue line)

2) 180 EMA (Red line)

We’re using the above indicators to identify the overall long-term trend of the current asset that we’re looking to trade. When the 180 EMA is above the 365 EMA, it means that the asset is currently up trendingWhen the 180 EMA is below the 365 EMA it means that the asset is currently down trending. The first step in this strategy is to find an asset that the above EMA’s are pointing the same direction on different time frame: 5 Min, 15 Min and the 30 Min. This means that we’re looking to find an asset that on the above time frames, the EMA’s are pointing the same direction and showing the same trend.

See the example below of GBP/USD on the 5/15/30 min chart. On all time frames the EMA’s are pointing downwards:

ema1

ema2

Once found, we’re going to switch over to the 1 min chart to find possible entry places. We will then wait for the price action to cross above the EMA’s on a downtrend or below the EMA’s on an uptrend. Then, our entry point will be the first candle that will close back below or above the 365 EMA (depends on the direction of the trend, see examples below).

ema3

The Expiration time should be set on 1 or 2 hours, remember that we’re trading long-term vs 5,10,15 minute expries using this strategy. For more information I welcome you to also visit my YouTube strategy illustration:

Using this strategy, I managed to ITM over 80% for Mike’s FB Signals Group in the last few days. I am proud to be a leading admin and will be glad to take any questions from anyone who is interested to learn about my EMA’s trend trading strategy for binary options. You may comment below this article, on YouTube or do the right thing and join our group. We share a lot of information with our traders for free without charging money for education and our ITM rate is very competitive in comparison to leading binary options signals services. Thank you for taking the time to learn about my high ITM, EMA’s Trend Following strategy.

The Best Binary Options Pinocchio Strategy!

Tuesday, August 25th, 2015

Tuesday, August 25th, 2015 Tim Lanoue 

Welcome back everyone, today I will review my powerful Binary Options Pinocchio Strategy! Perhaps one of the best advantages about this binary options trading strategy would be that it requires the use of zero technical indicators unlike most strategies today that rely on the use of questionable technical indicators.

Ideally, all you need in order to properly apply this strategy would be access to a charting solution such as MetaTrader4 (MT4), MetaTrader5 (MT5) or thinkorswim (TOS) along with having a binary options broker account.  Moving forward, as you can insinuate for yourself practice beforehand will better increase your probability of success with this trading strategy since you develop a taste and feel for what the correct signals appear like.  Now the name of this trading strategy is actually quite unique and has a little story behind it.

You see the story behind the Pinocchio strategy would be that the signal (a single Japanese candlestick that possesses a small body with a long wick above the body) exhibits the same behavior as the beloved Pinocchio cartoon that we are all so familiar with.  You see, when Pinocchio is lying his nose continues to grow which in this case ends up being our upper wick.  Our upper wick, which represents Pinocchio’s nose, indicates to us that the buyers and sellers are having difficulty in establishing control over the asset.  This long upper wick indicates to us that a bearish reversal will more than likely occur therefore once we see this formation we need to place a PUT investment that corresponds appropriately with your time frame.  These formations are known as Pin Bar formations and for those of you who are questioning what Pin Bar candlesticks appear like please refer to the picture below.

Now in general when we are applying this strategy we are looking for Pin Bar candlestick formations but there are also one other candlestick formation that we can look for when using the Pinocchio trading strategy which would be the Shooting Star candlestick formation.  Now for those of you who are not familiar with the Shooting Star candlestick it is a single candlestick that indicates to us that a bearish reversal will more than likely occur.  Before you can properly identify a proper Shooting Star candlestick you need to make sure that the candlestick is bearish, occurs in a bullish trend and is characterized by a wick that is at least 2 to 3 times the length of the body.  In the pictures below you can see examples of just how powerful and accurate the Shooting Star candlestick can be.

Now that you have a better understanding on how to identify trading signals let’s talk more about the actual implementation of this trading strategy.  You see unlike most binary option trading strategies that require you to invest solely during a particular time of day, the Pinocchio trading strategy allows investors to invest during any time of the day that they deem necessary.  In addition, the principles behind this trading strategy are based upon the creation of order flow, which happens to be the direct derivative of Price Action, indicating to us that we can apply the same perimeters for the Pinocchio trading strategy that we do with Price Action Trading Strategy. Simple meaning that we can invest with any time frame and expiry time that we think would most likely result in success.  For those of you who are unfamiliar with Price Action Trading Strategy but would like to learn more please feel free to read my Price Action Trading Strategy.

Possessing a basic understanding about the fundamentals of technical analysis along with simple Japanese candlesticks can greatly increase your success as a binary options investor.  The Pinocchio trading strategy is simplistic yet highly effective and can be applied by traders of all experience levels.  Stick with a time frame and make sure to keep your expiry time in proportion with your desired time frame.  As always if you guys have any questions regarding this binary options trading strategy please feel free to leave a comment below and I will answer them all for you!  Lastly, for those of you who were intrigued and felt that this trading strategy was beneficial please feel free to become part of our Facebook Signals Group.  We not only are we the most reputable and reliable binary options Facebook group but we are also over 2,200 members strong!

The 50K Mission is a SCAM!!!

Monday, August 24th, 2015

A new SCAM by the name of 50K Mission was just released. My name is Michael Freeman and here’s my mission for today: to get this review 50K views so that NO ONE signs up with this scam. I am amazed at the number of fraudulent systems that are released every day. Even before they are released, many review website already prepare the ground by promoting them. Unfortunately, I just don’t have the time to deal with them all, but here’s one that really set me off. So read this review carefully and stay away from the 50K Mission SCAM!

I get emails every day from people asking me about different binary options scams. By now, I have become a master scam exposer. So rest assured that this review is not a promotion in disguise. When I say that 50K Mission is a scam, I really mean it! Let’s go over 50KMission.com so I can teach you how to easily recognize a scam.

First of all, look for too-good-to-be-true promises. If a website promises that you make “life-changing amounts of money in a week” like the 50K Mission does, it’s a pretty good sign that you’re dealing with a scam. They write that “with its proven track record, the 50K Mission is 100% guaranteed to bring you profits” and “there’s virtually no limit on how much and how fast you can earn money with 50K Mission.” Such promises are unrealistic and even deceptive in the highly risky binary options industry.

50kmission

Second, beware of fake bank accounts screenshots and forged trading results. At the bottom of the 50Mission.com website, you can find an example of bogus results. How can you tell that they’re fake? For one thing, a 100% ITM for 300 trades is never possible. Also, the payout is $15,500 while the start balance is $250. Again, not possible. Normal returns on winning trades are around 85%. So even if you invest $250, the highest possible profit is $212.5. To get a payout of $15,500, you would need an investment of $18236 per trade.

Finally, and it’s not really the last thing we could point out, there are endless signs that 50K Mission is a scam, look for false comments and fake testimonials. Scam websites usually use actors to deliver false testimonials. With the 50K Mission, you will also find fake FaceBook and Twitter comments. How do we know that these comments are fake? Easy. Notice that the comments are not really linked to FaceBook or Twitter so you cannot press on the users’ names to view their profiles. Also, surnames are missing and the times don’t change. For example, the comment by Jay from “2 mins” ago which says “what is happening?? My account now sits at $23,891.44 I only depositd $300 4 days ago, this is insane.” You can check it again 2 hours later, or even 2 days later, it will still say that this comment is from “2mins” ago.

Seriously, I could go on and on, but I hope that even this short review teaches you an important lesson on recognizing scam offers. I know that many of you are looking for a quick way of making money, but unfortunately that’s not how it works with binary options. You need to start slowly and learn as much as you can. (I provide a lot of free material on my blog.) sign up with a Free Demo Account while you’re trying new services. One of the best places to learn is my FaceBook Signals Group. For free webinars, screenshots and testimonials, check out my Binary Options YouTube channel. My FaceBook group is not just a signal service but also a supportive learning community. When you are ready to sign up with a broker, make sure to go with EU regulated brokers such as Topoption.com, Anyoption.com and OptionTime.com as listed on my top 5 brokers in the side bar.

If you have any questions or feedback, please comment below this review and you are also welcome to email me at tradingbinaryonline@gmail.com!

Binary options Swing Strategy

Monday, August 24th, 2015

Monday, August 24th, 2015 by Ashraf Moos 

Welcome Traders, This is Ashraf I am one of the top traders at Mike’s Facebook group. Many traders in the group follow my strategies and I decided to keep posting content for Mike and his website visitors. Today I will go over my Binary Options Swing Strategy. First, this strategy is designed for hourly, 4 hours and end of day expiries. Do not use any of the tactics with short-term expiries and always test a new method or strategy using a free demo account as Michael Freeman suggests, especially if you are a beginner.

Disclaimer: This Strategy was first posted on Investoo.com and a few blogs but Ashraf gave it his own touch. I encourage you to watch his unique video on this topic that’s posted on my channel.

The goal of this Swing strategy and method is practice is to take advantage of the market price swings. We use this method of trading only during high volatility conditions as a prerequisite.

THE INDICATORS: For the most part, we’re going to use the Bollinger Bands in order to determine the market direction and condition with the default settings.

MACD with settings of 3,11,16. As you can see, we are using an aggressive setting for the MACD Indicator in order to evaluate when the momentum starts.

   SMA – Simple Moving Average is set at a period of 3 which will be our trigger!

 THE RULES AND CONDITIONS

CALL SETUP: Price breaks above the middle Bollinger Band. The 3 period SMA breaks above the middle band. The MACD turns positive.

PUT SETUP: Price must break the middle Bollinger Band downwards. The 3 period SMA breaks below the middle band. The MACD turns negative.

EXPIRY TIMES: Trading off the 15 minute chart = one hour expiry. Trading off the 1 hour chart = 4 hours to end of day expiry.

Watch my complete video on the Binary Options Swing Strategy for a complete illustration.

THE STRATEGY HAS AN ACCURACY OF UP TO 83% IF APPLIED CORRECTLY

I also encourage you to check out my article titled ‘PSAR and ADX Combo Strategy %80+ ITM!!‘. Let’s sum it up, Swing trading is widely covered and used by binary options and FX traders but many times they don’t get the setting and the combination of indicators right. After using my Swing method for a very long time I can testify that my setting for the MACD, Bollinger Bands and SMA can provide you with some amazing trading opportunities. I also encourage you to check out some of the previous articles I’ve written for Mike and videos on Mike’s Binary Options YouTube channel. If you have any questions you are welcome to comment below this article and I will respond and also below the video on YouTube. Good luck with your trading and again, remember to test every binary options strategy using a demo account before you trade using a real live account. If you are interested to get professional signals from the admins and top traders at Mike’s Facebook Signals Group, you need to join us!!! We’re doing amazing and generate many signals on a daily basis, free binary options educational sessions and live webinars. Good luck with your trading!

PSAR and ADX Combo Strategy %80+ ITM!!

Thursday, August 13th, 2015

Thursday, August 13th, 2015 by Ashraf Moos 

Hey guys it’s Michael Freeman and today we’ve seen Ashraf’s PSAR and ADX strategy video go really viral on YouTube. I want you to check out the following instructions before you start practicing with this proven strategy. Ashraf has many followers in our Facebook signals community, he provides lesssons and a lot of powerful education for online traders. If you have any questions after reading the following instructions, please comment below.

Disclaimer: This Strategy was first posted on Investoo.com and a few blogs but Ashraf gave it his own touch. I encourage you to watch his unique video on this topic that’s posted on my channel.

PSAR and ADX Combo strategy – Instructions. 

  • In this strategy we are going to trade short term reversals on trending markets.
  • Signals might come when the trend is over & price reverses, a counter trend trade.
  • They might also come after a pull back to jump in the trend.
  • We base these reverse signals on the parabolic SAR with settings of 0.02 acceleration and step of 0.1. 

metatrader4-1

  • These signals do not work in ranging markets and this is why we also use the average directional index (ADX).
  • The ADX Indicator measures the trend strength without regard of trend direction.
  • The trigger for the ADX is going to be 25 for this strategy to work best.

 

RULES for the PSAR Indicator

  • We must be in a trending market.
  • In an ascending trend the psar must be below the price.

a11a

In a descending trend the psar must be above the price.

a11a2

  • The first step is to wait for the psar breakout.
  • In an ascending trend we wait for a break of the psar to the downside.
  • In a descending trend we wait for a break of the psar to the upside.

RULES for the ADX Indicator

  • We must be in a trending market.
  • The ADX must be above 25.
  • To draw line use the line drawer tool as you would for drawing support and resistance and insert your line on your adx window right click on the line to edit and and set parameters to 25.

adx1

adx2

  • If we have a psar breakout but the adx is below 25 the signal is invalid and must not
    be traded.

buysell

buysell2

SETUP FOR CALL OPTIONS

calloption

SETUP FOR PUT OPTIONS

putoption

putoption2

Okay ladies and gentlemen, this is yet another powerful strategy that actually delivers! Expect up to 84% ITM rate when used correctly. Please follow all the rules and confirmations, they are there to protect you from choppy markets. Do not trade this strategy and hour before or after the news!

PSAR and ADX Combo Strategy + Live Trading on YouTube

Please try this trading system first on a Free Demo Account until you manage to gain confidence in your understanding and implementation on this binary options strategy.  I hope you enjoyed today’s lesson and I welcome you to share your feedback and comments below. I will be around to answer your questions on Mike’s blog and on the Binary Options YouTube channel.

For live signals and education, you are welcome to join us at Mike’s FB signals group!

Binary Options Support and Resistance Strategy by Snir Yamin

Wednesday, August 12th, 2015

Wednesday, August 12th, 2015 by Snir Yamin

In this article I want to share with you my effective Binary Options Support and Resistance strategy, with an average of 80% win rate. This is indeed, a very powerful strategy that can work for beginners, if this information is new to you please post your questions below and make sure to test my strategy on a demo account.

To apply this strategy in the most accurate way, we will use the following indicators on the 15 min chart:

  • 365 EMA (exponential moving average)
  • 180 EMA
  •  Bollinger Bands (default setting of 20, 2.0)

The first step in this strategy is to identify the overall trend of the current asset. In order to do this, we’re using the 365 (blue) and 180 (red) EMA’s. If the shorter EMA (180-red) is below the longer EMA (365-blue), the currency is on a downtrend. Vice Versa with uptrend – If the 180 EMA is above the 365 EMA, the currency pair is currently up trending.

The seconds step is to wait for the price to cross the lower or the upper band of the Bollinger Bands. In a downtrend we want to see a cross of the upper band from bottom to top, and in an uptrend we want to see a cross of the lower band from top to bottom. Once the price crosses the band, we will draw Horizontal line from the lowest/highest point of the crossing candle (depends on the current trend).

On a downtrend we will draw our horizontal line from the highest point of the candle that crosses the upper band.
On an uptrend we will draw our horizontal line from the lowest point of the candle that crosses the lower band.

The third step is to wait for at least 3 bounces of our horizontal line. We want to see the price testing our line but not closing below it (in case of a support) or above it (in case of a resistance) at any given point. On the 3rd bounce of our support/resistance line we will open a Call (on support) or Put (on resistance) to expire at the close of the following 15 min candle.

eur-gbp-setup

As you can see, EUR/GBP is currently up trending according to the EMA’s (180 above 365). Around 8:00pm EST the price crossed the lower Bollinger band, this will be our place to draw the horizontal line from. Then, price tested this level once and closed above it. Then tested it twice and closed above it again. On the 3rd touch of this level we opened a Call option to expire at the close of the following 15 min candle. As you can see this position ended up deep In the Money (ITM).

gbp-usd-setup2

As you can see, GBP/USD is currently down trending according to the EMA’s (180 below 365). Around 4:00am EST the price crossed the upper Bollinger Band, this will be our place to draw the horizontal line from. Then, price tested this level once and closed below it. Then tested it twice and closed below it again. On the 3rd touch of this level we opened a Put option to expire at the close of the following 15 min candle. As you can see this position ended up deep In the Money (ITM).

Who is the author of this article, Snir Yamin? 

Snir is one of top trading admins at Mike’s FB signals group. He hosts webinars, teaches binary options and provides our members with daily signals. With a consistent performance of over %75 ITM Snir is a leading trader and definitely someone you want to learn from and follow. Don’t hesitate to share your questions or comments below.

Join Mike’s Facebook Group Free, for more information email us at tradingbinaryonline@gmail.com

MACD and 21 Moving Average COMBO STRATEGY!!

Sunday, August 9th, 2015

Tuesday, August 9th, 2015 by Ashraf Moos 

Mikes_Binary_Options_Signals (1)

What kind of insight do we get by setting up the MACD and 21 Moving Average strategy? Instructions:

1) Trade short-term Reversals & Into Momentum.
2) The 21 MA gives us the momentum ‘price bursts’through and breaks with the previous structure.
3) The MACD HISTOGRAM confirms the move with momentum building towards the right side of the trade.
4) The MACD also invalidates 21 MA signals when the momentum is non existent so if we have 21 MA signals but the confirmation of the MACD is not there we do not enter a trade, as there is no momentum in the direction.

Below are the rules for Put and Call options based on the MACD and 21 Moving Average strategy:
Rules for Call Options

1.Price must be traded below the 21 MA, break above and close above it.

2.The MACD must turn positive to validate momentum to the upside

3. Expiry Times:

M1 = 5 MIN OPTIONS
M5 = 20-30 MIN OPTIONS
M15 = 45 – HOUR OPTIONS

 

See the setup below for a Call Option:

macd1

Rules for Put Options

1. Price must be traded above the 21 MA , break below and close below.

2. The MACD must turn negative.

3. Expiry times will be the same as explained for the CALL options.

Please use a Free Demo Account when testing my strategies please, This combination is very powerful when used correctly and also very simple to implement.

There are only two rules so please follow them correctly. FOR EXAMPLE: If the candle breaks 21 MA down and MACD is coming from the top..you might think to yourself, well it’s probably getting ready to turn negative but it doesn’t and you have entered a bad signal. ALWAYS WAIT FOR MACD CONFIRMATION.

TRADE ONLY DURING THE MOST LIQUID TIME IE: LONDON/NY SESSIONS.

TRY AND STICK TO THE MAJOR PAIRS SUCH AS EUR/USD,GBP/USD,USD/JPY,USD/CAD,USD/CHF AND AUD/USD. I HOPE YOU FIND SUCCESS USING THIS STRATEGY. NEXT UP ICHIMOKU!!!!! and then will focus on video lessons for the 4 strategies Ive given you :)))) happy trading peeps!!

Join me and other traders at Mike’s Signals Group on Facebook and don’t forget to share your feedback below.

Part 2: 4 Common Japanese Candlesticks Formations

Tuesday, August 4th, 2015

Tuesday, August 4th, 2015 by Tim Lanoue

Hey everyone! Welcome back! Chances are that if you are reading this then you wisely decided to come back for Part 2 of 6 of our Japanese Candlestick series! Now as many of you know Part 1 was more of an introductory to get us ready for the upcoming series along with break the ice on one of the most overlooked technical aspects regarding binary options investing. Today as you can insinuate by the title of this article we will be covering 4 common Japanese candlestick formations along with what they indicate to online investors.

Now if you are reading this and haven’t already read Part 1 then I would highly recommend doing so and you can do that by clicking Here. (Hyperlink “Here” to Part 1 Article) Now before we go ahead and jump right into Part 2 I would just like to reiterate the importance of Japanese candlesticks and common Japanese candlestick formations. One fact that should be kept in mind and what many people still fail to realize would be that formation of Japanese candlesticks are the foundation to almost every technical analysis based trading strategy. Technical trading strategies that encompass the need for reversals, breakouts, trends along with the break of support and resistance levels are all a result of the formation of particular Japanese Candlesticks.

Now moving forward, the first type of Japanese Candlestick formation we will be covering today is known as an Inverted Hammer. Inverted Hammer candlesticks are a single candlestick formation that occurs when the price of our targeted asset has been decreasing and the likelihood of a reversal is strong. The long upper wick, also known as the shadow, indicates to investors that buyers tried to establish control but unfortunately failed. The formation of this long upper wick along with the closing of this candle also tells us that the sellers weren’t able to push price any lower therefore indicating to us the a bullish reversal will more than likely occur since most of the sellers have already sold. Now two stipulations concerning Inverted Hammer candlesticks would be that they must occur during a bearish trend and the candlestick itself must be bullish, if you see the formation of a candlestick that looks much like an Inverted Hammer but occurs during an upward trend then that formation is mostly likely a Shooting Star.

Shooting Star candlesticks are bearish reversal patterns that have the same appearance of an Inverted Hammer but occur during an uptrend. As you can see in the picture below Shooting Star candlesticks share the same long upper wick indicating to us that the buyers tried to push price higher but the sellers were almost able to establish control and push price down indicating to us that a bearish reversal will more than likely occur. Shooting Stars are a relatively strong Japanese candlestick formation so when spotted make sure to enter a strong PUT trade.

The third type of candlestick formation that we will be covering today is known as a Hammer candlestick. Hammer candlestick formations are strong bullish reversal patterns that form during a bearish trend, otherwise known as a downtrend. As you can see for yourself in the image below, Hammer candlesticks bare the resemblance to that of a hammer and the naming of the formation can also be contributed to the fact that Hammer candlesticks “hammer” out of the bottom of the market.

The last type of candlestick formation we will be covering today is known as the Hanging Man. As you can see in the image below, Hanging Man Japanese candlestick formations share the same resemblance of a Hammer candlestick but the variable that differentiates the two would be that a Hanging Man occurs during a bullish trend while a Hammer only occurs during a bearish trend. Another factor to keep in mind as well would be that Hanging Man candlestick formations oftentimes mark the top of a strong resistance level so for those of you who rely on Price Action Trading Strategy then make sure to be aware of Hanging Man candlestick formations.

Acquiring a better understanding about common Japanese candlestick formations can significantly increase your success as a binary options investor but most importantly widen your knowledge and understanding of technical analysis based trading strategies. Without the formation of Japanese candlesticks there would be no micro aspect to technical analysis which ultimately means there would be zero technical based trading strategies or approaches. If you would like to learn more about Japanese Candlestick formations and what they indicate to online investors make sure to stick around for Part 3! In addition, if you guys have any comments or questions that you would like answered please feel free to leave them below and I will answer each and everyone of them! Lastly, for those of you who found this article educational and helpful please feel free to become part of our Facebook Signals Group. Not only are we the largest binary options Facebook community but we are also the one and only binary options family!

Part 1: 3 Common Japanese Candlesticks

Friday, July 24th, 2015

Friday, July 24th, 2015 by Tim Lanoue

Welcome back everyone! Regardless of the reason why you are here today I would just like to make it known that this article is only part 1 of 6 to come so make sure you stick around to benefit from all 6 parts.  With that being said we are going to cover perhaps one of the most important technical topics that could very well dictate your success as a binary options investor.

Now I know some of you may be thinking how can the formation of Japanese Candlesticks and Candlestick patterns dictate your success as a binary options investor?  Well the answer to that is quite simple and straightforward.  You see what many people fail to realize would be that the formation of certain Japanese candlestick formations are the backbone behind many of the technical analysis based trading strategies applied by traders from all investment industries.  Strategies that rely on trends, reversals, breakouts and the break of support and resistance levels are all based off the formation of common Japanese candlestick formations.  A better way to understand and appreciate the value of Japanese candlestick formations would be as followed:  Japanese candlestick formations are the micro aspect for a technical trading strategy while the actual strategy and technical indicators serve as the macro aspect of the trading strategy.  To further break it down, we have order flow which is the summation of all buy and sell orders over any duration of time, then we have Price Action which is the direct derivative of order flow and is directly responsible for the formation of price candles.  Then we move forward to candlestick formations and then finally the application of technical trading strategies and technical indicators.  In the flow chart below you can grasp a better understanding of this concept.

Now for those of you who aren’t familiar with Japanese Candlesticks I would highly suggest that you read Mike’s Candlestick Charts Guide (hyperlink:  http://binaryoptionschannel.com/candlestick-charts-guide/).  Not only does it cover the ins and outs associated with the formation of Japanese candlestick charting but it also serves as a perfect introduction on how to apply candlestick charting with binary options.  Once you have read it then I would suggest and recommend that you come back and finish reading Part 1.

Now that you have a better understanding on how Japanese candlesticks are formed and their advantages within the binary options industry let’s move forward!  The first type of candlestick we are going to cover today is known as a Marubozu.  Marubozu candlesticks are the most common and they are better represented in the image below.  As you can see there are two types of Marubozu candles, a bullish and a bearish.  A bearish Marubozu candlestick as you may already know indicates to us that the sellers are in control while on the other hand a bullish Marubozu candlestick indicates to us that the buyers are in the control.

The next type of candlestick that we will be covering are known as Spinning Tops.  Spinning Tops candlesticks can appear as a bearish or bullish spinning top and they often indicate to investors that market indecision is currently present between the buyers and sellers.  As you can see in the image below, Spinning Tops have a small body while their shadows, also known as wicks, appear relatively strong on both the upper and lower end of the candle body.  If you see a spinning top candlestick form during an uptrend it often signifies to investors that a bearish reversal is about to occur since the availability of buyers are diminishing and vice versa for a spinning top formation during a downward trend.

The third type of candlestick is perhaps one of the most variable type of candlesticks.  Doji Candlesticks are candlesticks that have the same opening and closing price indicating to us that neither the buyers nor sellers were able to establish control.  Among the four type of Doji candlesticks would be Long-Legged Doji, Gravestone Doji, Four Price Doji and DragonFly Doji, which are better represented and understood in the picture below.  If you see the formation of any one of these four candlesticks during the trend of an asset it often indicates to us that a reversal will more than likely take place.

Understanding common Japanese candlestick formations can greatly enhance your knowledge and success as a binary options investor.  Remember the formation of common Japanese candlesticks are the backbone of almost every technical analysis based trading strategy.  Without these formations there would be zero technical based trading strategies or approaches.  To learn more about Japanese Candlestick formations and what they indicate make sure to stick around for Part 2!  As always if you guys have any questions please feel free to leave them below and I will do my best to answer each and every one of them for you!  For those of who you are new to this blog as well and enjoyed this article please feel free to become part of our Facebook Signals group.  We aren’t just the biggest binary options Facebook community but we are also a family!