Continuing the series on trading strategies in Binomo, today, we would like to show you in this article an easy-to-use and effective trading strategy that gives reliable entry points. It is the Evening Star candlestick pattern combined with resistance – a simple formula for opening DOWN orders in Binomo.
- 1 A Little Reminder Of The Evening Star Candlestick Pattern And Resistance
- 2 Binomo Strategy With Evening Star Candlestick Pattern And Resistance
- 3 Reviewing On Some Orders Which Use This Binomo Trading Strategy
A Little Reminder Of The Evening Star Candlestick Pattern And Resistance
Evening Star is a reversal candlestick pattern from bullish to bearish with high accuracy and is used as an entry signal to open DOWN orders.
The Standard Evening Star Candlestick Pattern
It combines 3 candlesticks as follows:
• First candlestick: strong bullish green candlestick.
• Second candlestick: Doji candlestick or Spinning Top candlestick.
• Third candlestick: strong bearish red candlestick with at least ½ length of the first candlestick.
The Variant Evening Star Candlestick Pattern
It has a similar structure but between the first and third candlesticks, there are 2 or more Doji and Spinning Top candles.
Binomo Strategy With Evening Star Candlestick Pattern And Resistance
Basic Settings For This Strategy
1. The 5-minute Japanese candlestick chart and the assets: AUD/USD, USD/JPY, EUR/USD.
2. The expiration time for each order is 15 minutes or above.
3. Setting strong and weak resistance zones and identifying the trend of the market (uptrend, downtrend, sideways).
The basis of this formula can be simply understood as follows: when the price creates an Evening Star candlestick pattern, the probability that it will turn around from bullish to bearish is very high. Combining this with the resistance, which is a level/zone where the prices are also blocked when going up, we have a safe entry point.
Binomo Trading Strategy Formula
DOWN order = the price touches the resistance level/zone + the Evening Star candlestick pattern.
Notes When Using The Strategy Of The Evening Star Candlestick Combined With Resistance
1. Do not stuff (open too many orders) or raise the amount invested to recover the loss of the previous one. This is a taboo in trading and no exception in this strategy.
For example, in this situation, you will probably lose with the expiration time of 25 minutes. If you do not remain calm and go on opening DOWN orders, you will continue to lose. Stay calm and think that in this case, the formula was not right, the probability of losing happened. Relax and wait for the next opportunity.
2. In the Evening Star candlestick pattern, if the third candlestick is too long compared to the first candlestick, ignore it and do nothing.
As in the example above, the third candlestick is too long compared to the first candlestick. The downward momentum of the price may have already stopped within the third candlestick, so it is not correct to expect a further decline in prices.
Reviewing On Some Orders Which Use This Binomo Trading Strategy
Order 1: After a long downtrend, the price rebounds sharply to create an Evening Star pattern in the resistance zone. Open DOWN orders right after that. The expiration time is 20 minutes.
Order 2: the Evening Star candlestick pattern is created within the downtrend located in the resistance zone which was broken before.
Because this is an extremely accurate signal for a reversal of prices from bullish to bearish. The Evening Star candlestick combined with resistance is a very popular strategy of trading used among traders, especially newbies. Practice this strategy with a demo account today. Sincerely and goodbye.