There are many methods to trade options. A large part of them considers options to be a green/red game, with 2 choices being either green or red candlesticks (like gambling with black or red game). With this article, we will show you how to open options using the color of the candlestick in IQ Option.
Why does the trading method that uses candlestick color appears in IQ Option?
In the Japanese candlestick chart you see at the IQ Option trading interface, there are 3 types of candlestick colors that you will see including Green (Opening price is lower than closing price), Red (Opening price is higher than closing price) and Colorless (Opening price is equal to closing price).
Theoretically, there will be such 3 candlesticks. But when you trade options in IQ Option, the price is rounded up much smaller (less than 10 times the reference price at other reputable websites). For example, such as EUR/USD.
EUR/USD price in IQ Option is rounded to 6 digits after the decimal point.
But EUR/USD price at a reputable website like tradingview.com is only rounded to 5 digits after the decimal point.
Therefore, the probability to appear a colorless candlestick (opening price = closing price) in IQ Option is very low. Two types of green and red candlesticks will appear more often.
How to open options with candlestick color in IQ Option
This IQ Option trading method is mainly based on your skill of waiting and opening options.
For example, if you trade with the color of a 1-minute candlestick in IQ Option, then do the following steps.
First, adjust the candle time period in IQ Option interface to 1 minute.
Second, choose the remaining expiration time which is over 1 minute.
Third, open the option when Purchase time is at 00:30. Or the current time at the bottom must be at 00 seconds. Make sure that the time you open a new option is equal to the beginning time of a new candlestick. And the candle time period is equal to the expiration time of an option.
Above is a simple example of how to trade with 1-minute candlestick color in IQ Option. You can test to practice your opening options skills more. But if you trade with a live account, you have to use 5-minute or longer candlesticks.
Who should trade with candlestick color in IQ Option?
This trading method needs skills more than technique, points analysis, standard price to open options. Therefore, you don’t have to know too many technical analysis methods at IQ Option. You just need to statistic the probability of candlesticks color.
Counting candlesticks or check history statistics to know the habit of the price and candlesticks. You just need to learn their rules. For example, in the morning with the 5-minute candlestick chart of EUR/USD, the market will create 1 red candlestick out of 3 consecutive green candlesticks and vice versa.
This is simply an example. You need to do your own statistical methods and draw your own rules. However, never open options with a short time period. A 1-minute option with 1-minute candlestick can affect your psychology easily. Many experienced traders advise that we should start from 5-minute candlestick, even 15 or 30-minute one. The time you wait to close an option is not a problem but the problem is to win or lose.
Thank you for reading this article!
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