Continuing the series of articles on strategies, today, we would like to bring you a simple yet extremely effective strategy based on price action. We shall use the Bearish Harami candlestick pattern in combination with Resistance. Let’s follow the article to get a new trading strategy in Binomo.
- 1 Harami Bearish Candlestick Pattern Combined With Resistance
- 2 Preparations For Trading In Binomo With Bearish Harami And Resistance
- 3 Bearish Harami candlestick pattern and Resistance formula
- 4 Things To Note About This Strategy
- 5 Capital And Emotions Management
- 6 Some Trading Orders Using This Strategy
Harami Bearish Candlestick Pattern Combined With Resistance
Harami is a candlestick pattern that gives a very strong signal for a price reversal. When it appears, one we need to concern about it, especially when it appears within the levels of the price (resistance, the moving averages, etc.). The strategy I’m about to share is combining this candlestick pattern with resistance. We will go deeper into how to trade and manage capital. This is a trading strategy used by the masters in Binomo for their reversal orders.
Preparations For Trading In Binomo With Bearish Harami And Resistance
- Asset pairs: EUR/USD, USD/JPY, USD/CAD.
- A 5-minute Japanese candlestick chart.
- The expiration time must be 15 minutes or more.
- Identify price levels (Resistance, Support).
Bearish Harami candlestick pattern and Resistance formula
Open a DOWN order = the price touches the resistance + the Bearish Harami candlestick pattern appears.
Meaning: Resistance zone is where when the price touches, it will very likely to fall back down. However, this is not always the case. The Bearish Harami candlestick pattern appears to confirm the price reversal.
Things To Note About This Strategy
After testing on a DEMO account for a while with this strategy, I have some notes for your reference when using.
- You can completely ignore it if the Harami candlestick pattern appears near the resistance zone.
In the example above, the price created a Bearish Harami candle one distance away from the resistance level. You could ignore this order.
- Do not stuff orders (open many orders at once) if the previous one loses. This is a taboo in options trading and no exception in this strategy.
In the example above, stuffing would make you go further into the loss.
Capital And Emotions Management
In our opinion, the biggest problem in trading is not in analyzing the entry points but in managing capital and emotions. This is the most difference between advanced and amateur traders. As far as being shared, the best way of managing capital for this strategy is to invest in each order with a constant amount of capital. We will invest 10% or our balance for each order and open only 1 order per 1 session. By trading like this, you will minimize the loss of control.
Some Trading Orders Using This Strategy
1st order: USD/CAD currency pairs. After a fall, the price rebounded sharply to form a Bearish Harami candlestick pattern at the resistance level created by a previous pull-back candle. Open a DOWN order with an expiration time of 30 minutes.
2nd order: EUR/USD currency pairs. The price approached the resistance zone and then created a Bearish Harami candlestick pattern => Open a DOWN order with an expiration time of 20 minutes.
We have done sharing another strategy with you. This is a simple trading strategy based on price action but it is very effective. Test it right now on a demo account to verify the effectiveness. In future articles, we will review opened orders on real accounts with this strategy. Stay tuned!