A strong reversal candlestick pattern is a sufficient signal for you to open orders in your favor in Binomo. Today, we want to share with you a trading strategy of an experienced trader in Binomo. It is a strategy for opening UP orders using the Bullish Harami candlestick pattern combined with Support.
Bullish Harami Reversal Candlestick Pattern
If you are not sure about this candlestick pattern, you can review it here.
Within this article, we will recall only a handful of background knowledge. The Bullish Harami candlestick pattern signals a bullish reversal. It usually appears at the end of a price trend.
In the strategy using Bullish Harami candlestick pattern and Support, the entry signal is based on this candlestick pattern. The support zone will be an additional condition to increase the accuracy of the order.
Open an UP order = the price falls into the support zone + Bullish Harami candlestick pattern.
Preparations For The Strategy
- Choose familiar currency pairs: USD/CAD, USD/JPY, EUR/USD.
- A 5-minute Japanese candlestick chart.
- Identify the support zones of the price.
- Enter trade with the expiration time of 15 minutes or above.
Capital And Emotions Management
According to statistics, the appearance of a Harami candlestick pattern on the price chart is not much (about 2-3 times a day). So the capability of opening an order following the strategy is not too high. However, when it appears, its accuracy is huge. Regarding capital management, we recommend that you should open 1 order per day with an amount of 10-15% of your balance. After opening an order, shut down your computer and stop trading. In this way, you can minimize the effect of fluctuations in prices on your psychology. Remember that it is better to ignore orders than to lose them.
Important Things To Note About This Strategy
To perfect this strategy, we would like to give a few small notes so you can make the most of it to become profitable.
- If the price breaks out of the support zone and creates a Harami candlestick pattern, you can ignore it.
In the example above, many of you would try to open this order. You would think that it took too long to wait for the candlestick pattern to appear. Therefore, we could still open an order because it just broke out of the support zone a little bit. We might regret not opening it if it was a winning one. This is exactly what you will stumble into when trading. Remember to stay within principles and discipline. Only then can you survive this battlefield.
- The price begins to decline with a strong bearish signal (candlestick pattern, special candlestick, etc.) Although the two conditions of the strategy are satisfactory, you can ignore the order.
Take a look at the example above. The price fell in the support zone beginning with a Bearish Harami candlestick pattern. This was a strong bearish signal. So, even after rebuilding the Bullish Harami candlestick pattern in the support zone, the price kept falling. If you entered the trade here you would probably lose.
Some Orders Using This Strategy
The following are some examples of our test orders. Overall, this is a fairly safe strategy for long-term orders with a time frame of 20-30 minutes. Check it out, guys.
1st order: USD/JPY currency pairs. The price went sideways and then suddenly dropped. It created a Bullish Harami candlestick pattern in the support => Opened an UP order with an expiration time of 30 minutes.
Result: I won.
2nd order: EUR/USD currency pairs. After creating a strong support zone, the price rebounded to test this support with a Bullish Harami candlestick pattern => Opened an UP order with an expiration time of 30 minutes.
Result: The price increased sharply after that.
This is the end of our article. You can completely test this trading strategy with a demo account today. Do not forget to leave any questions and comments for us in the comments section. Love.