Today, I want to share with you the history of making income by trading in Binomo. Although it is the end of the month, I’m quite busy with my job but I still try to spend 1 morning on Binomo. All orders and strategies will be explained and described in detail. They are also the experience that I want to share with you. We hope that it could help you know how to make income when trading with candlestick colors in Binomo.
How To Make Income With Candlestick Colors In Binomo
The strategy of making income that I choose to use in Binomo is to follow the colors of the candlesticks. It means to forecast which color the next candle will be. The basis for opening orders is the entry signals. They include trends, test candlesticks, candlestick patterns, and finally the support and resistance.
Here, I choose the entry signal is the Morning Star candlestick pattern combined with Support. If you still have not known how to trade using candle colors, please review here.
And for the strategy using the Morning Star candlestick pattern + Support, you can also review here.
– The 5-minute Japanese candlestick chart. The assets of USD/JPY
– $100 of capital, open each order with $10 (10% of your balance)
– Basic analysis of the market on that day, verifying support and resistance lines, determining the trend of the price, etc.
For ease of describing orders and reasons for opening orders, I will use icons to highlight them.
The icons in the picture:
The antenna icon is the signal.
The downwards red arrow is the DOWN order (open orders to forecast at which the candlestick is red).
The upwards green arrow is the UP order (open orders to forecast at which the candlestick is green).
General Market Analysis
The opening price had some strong fluctuations but then gradually formed a bullish trend later on. From here, on my own experience, I chose to enter a trade only in a bullish trend which would give a higher probability of correct. So I chose the strategy using the Morning Star candlestick pattern + Support.
A very important note that you need to keep in mind is that after analyzing the market within your trading session, you need to come up with the right criteria. These are for you to be able to choose a reasonable trading strategy. Finally, follow the rules of the strategy. Besides, you must manage your capital and emotion. Just in that way, you may think about making some profit in Binomo.
There were 5 orders opened, including 4 correct forecast and 1 incorrect. The profit was $20 (20% of the original capital). Regarding the pros and cons of the strategy, I will show at the end of this article. Now, I will analyze in detailed each order for you to understand.
Reasons for opening orders
Order 1: the price is in a bullish trend but then plummets and touches the support level forming a Morning Star candlestick pattern => I opened an UP order. I was incorrect. This was my first order and failed as well. This made me feel quite uncomfortable. After this order, I thought that the price would continue to fall but it did not. The price showed signs of going sideways and slightly increasing. Therefore, I made up my mind continuing with my planned strategy.
Order 2: the price continued to test the support level and formed a Morning Star candlestick pattern => I opened an UP order. I was correct. Because the length of the third candlestick was not eligible to enter a trade, I hesitated a little bit while opening this order. When facing a case like this, you could ignore it to keep your account safe.
Order 3: the price fluctuated with a small margin. The Morning Star pattern continued to show up => I opened another UP order and had a right forecast.
Order 4: the price continued to break the level and go up. It tested the old resistance level with a Morning Star candlestick pattern => I opened a new UP order and right again.
After this order, the price continued to trend up. However, there was no entry signal so I just waited.
Order 5: the price slightly decreased and formed a Morning Star pattern in the support zone, especially, the third candlestick was in a strong bullish trend => I continued to open an UP order. It is the fourth correct in a row. I am almost unstoppable now.
The end of the 5th order was already 12 o’clock. After reviewing the transaction history, I decided to shut down and stopped trading. Personally, I always think that stopping at the right time in trading affects the outcome a lot more than the used strategy.
Pros And Cons
The Morning Star candlestick pattern is a reversal signal with a very high accuracy rate. This makes you feel more confident when entering a trade.
The strategy will be more perfect when the price is in an uptrend.
The capital management method is suitable for the majority of traders. It also does not apply too much pressure on traders during trading.
Quite rarely in a short trading session, the incidence of the Morning Star candlestick pattern to appear is so large like this. Normally, in order to get the number of orders that meet the requirement as above, you may need several trading sessions. This is one weakness of this strategy.
It is necessary to clearly identify from weak to strong support zones along the price bar. If not you may skip some good entry points.
This is the strategy to follow the colors of candles so you can only have very little time for setting up. As well as deciding whether or not to open orders.
Summary On How To Make Income In Binomo
Here I would like to end the article. Try to study and practice. Only then can you stand on this path.
Someone may tell you that trading is simple and easy to learn in a short time. He or she may either know nothing about trading or lure you into a trap. Don’t forget, I will always support you. Goodbye and see you again.