Today, we would like to share with you an advanced trading strategy in Binomo with great accuracy and safety. This is a strategy using the Parabolic Sar indicator and Evening Star candlestick pattern. I hope you can refer and apply during your transaction. Leave all questions as well as comments (if any) in the comment section below. OK, let’s go!
Strategy Using Evening Star Candlestick Pattern + Parabolic Sar Indicator
The strategy that we would like to recommend is opening DOWN orders with the combination of the Parabolic indicator and the Evening Star candlestick pattern. The basis for opening an order is as follows. Prices reverse from rising to falling. The position of Parabolic changes compared to the price. Evening Star candlestick pattern appears. A price reversal will almost certainly occur. This is a reliable basis for us to open orders.
Preparation For The Trading Strategy
- Asset pairs for trading: EUR/USD, USD/JPY, USD/CAD.
- A 5-minute Japanese candlestick chart.
- The expiration time of 15 minutes or above.
Initially, set up the Parabolic Sar indicator settings with the default parameters. If you do not know this indicator, you can review it here.
Next, use Parabolic Sar as well as candlestick chart to observe and assess the overall market. Then, focus on the appearance of bullish trends. If the Evening Star appears, then it’s time for us to take action.
Open a DOWN order = Evening Star candlestick pattern + Parabolic shifts from below to above the price.
Look closely at the image above to gain a better understanding of the entry conditions. Make sure that the Parabolic Sar has reversed before opening an order.
Capital Management Method
A good strategy must always go hand in hand with a good capital management method. This is how profit can come to you. With this strategy, we use the classic capital management method, which means that we will open orders with a constant amount.
With this way of managing capital, you can minimize your psychological effects during trading. Because these are long-term orders, you can stay assured against small fluctuations as well as price manipulation.
Some Notes For This Strategy
Here are a few notes you need to keep in mind if using this strategy. Thereby, you can exploit the maximum and increase the correct rate of this strategy.
– Do not open an order if the 3rd candlestick of the Evening Star is too long compared to its 1st candlestick.
As the picture above, the 3rd candlestick of the Evening Star candlestick pattern is too long. Maybe it has covered the bearish momentum. So after that, the price no longer drops even though the Parabolic has reversed.
– If Parabolic Sar reverses while creating the Evening Star, the price reversal probability will become higher.
Often after creating the Evening Star, the Parabolic Sar will reverse. However, when this happens sooner, the possibility of price reversal will be certain. As we can see in the picture above,
– Do not open orders when Parabolic Sar has not reversed.
Traders tend to judge that when the Evening Star appears, the Parabolic will soon reverse. However, it’s not always like that.
Test Parabolic Sar and Evening Star strategy
1st order: The assets of EUR/USD. At the end of an uptrend, the price created an Evening Star candlestick pattern. At the same time, Parabolic Sar reversed right on the 3rd candle of the pattern. Opened an order with an expiration time of 20 minutes.
2nd order: The assets of USD/CAD. The price rose sharply. Then, the Evening Star appeared, signaling a reversal. Parabolic Sar appeared later. => opened a 20-minute DOWN order.
Pic: 2nd order
We would like to end our article here. Try out this strategy in Binomo with a demo account today to verify its efficiency.