Candlestick patterns are the simplest entry signals for traders when learning how to trade in IQ Option. In this article, I will show you a simple reversal candlestick pattern. But it will surprise you because professional traders also use this trading strategy to make money every day. It’s the strategy around Morning Star candlestick pattern and Support level.
How to trade in IQ Option: Morning Star candlestick pattern and Support level
How to set up trading strategy in IQ Option
Choose trading assets including 3 main currency pairs: AUD/USD, USD/JPY, EUR/USD.
Candle time period is 5 minutes.
The expiration time is 15 minutes or more.
How to open a trade
The price first stops at a previous support zone with Tweezer Bottom candlestick pattern. Then it continues to test the support level and forms a Morning Star candlestick pattern => The price will increase.
HIGHER = The price drops to the Support zone + Morning Star reversal candlestick pattern appears
Morning Star candlestick pattern also has variations of small Doji candlesticks series. This is a sign that the price has stopped decreasing at the support zone and is about to reverse.
HIGHER = Morning Star candlestick pattern variations + Support level.
How to manage capital appropriately
The accuracy of the Morning Star pattern is trusted by many traders. When it appears, the price has a high chance to increase. But Morning star doesn’t often appear many times in a day. Therefore, to achieve a 60% win rate, you should follow the rules below.
Some rules when using Morning Star pattern and Support trading strategy
Absolutely do not open options in a row.
You should focus on observing when the price moves near the support zone and begins to create Morning Star candlestick pattern => If the price has completed the pattern at the end of the 3rd candle => Open a HIGHER option.
After trading an option, turn off the screen and do something else. Waiting for the option to finish gives you an uneasy feeling. At the same time, winning or losing will affect your psychology. This is the taboo in trading.
Review IQ Option entry points
Option 1: Morning Star candlestick pattern is formed right at the support level => Open a HIGHER option with the 30-minute expiration time.
Result of Option 1.
Option 2: Morning Star candlestick pattern touches support => The price is likely to increase => Open a HIGHER option with the 15-minute expiration time.
Result of Option 2
Through this article, we can see the accuracy of Morning Star candlestick pattern when it is successfully used by traders to open options. This is an easy-to-recognize, simple-to-use candlestick pattern in options trading. But it needs discipline and patience when the candlestick pattern appears. If you want to have a higher winning rate, you should test this reliable trading strategy through your demo account as soon as possible.