If you look at the chart when using the Japanese candlestick chart to trade in IQ Option, you will see 3 colors including Green (bullish candlestick), Red (bearish candlestick) and White (Doji candlestick with opening price equal to closing price).
So trading with candlestick colors in IQ Option means you guess what the next candlestick color is. In this article, I will guide in detail how to trade with candlestick colors in IQ Option. I also attach some instruction clips for you to watch and practice.
- 1 Detailed clip about how to trade with candlesticks colors in IQ Option
- 2 How to trade with candlestick colors in IQ Option
- 3 Note when building an IQ Option trading strategy based on candlestick colors
- 4 Conclusion
Detailed clip about how to trade with candlesticks colors in IQ Option
What color is the next candlestick? If you guess it is green => Open a HIGHER option. If you think it red => Open a LOWER option. Opening-option time = the time the candlestick you guess starts. Expiration time = the time the candlestick you guess closes.
This is an IQ Option clip recording how to trade with the 5-minute candlestick color (Japanese 5-minute candlestick chart = 5-minute expiration time). You can prepare to open an option when the current candlestick is 30 seconds away. There, you increase the expiration time to the same time the candlestick you bet closes.
And open the trade as soon as the current candlestick closes. Finally, choose the color of the next candlestick. Green or Red. Green = HIGHER. Red = LOWER. The entry time is exactly the same as the time the next candlestick begins. And the candlestick color will determine whether you win or lose.
(I have attached a live trading clip with this method in IQ Option, which is 13 minutes long below)
How to trade with candlestick colors in IQ Option
Step 1: Choose the Japanese candlestick chart in the 5-minute candle time period.
Step 2: Patiently wait for signals to open options. This is a very important step. It determines why you choose the next candlestick green or red.
Step 3: Choose the expiration time for the next candlestick.
Step 4: When the signal candlestick has just ended, you must click HIGHER or LOWER immediately. At this moment, the current time will be at 00 seconds and the expiration time will be more than the current time exactly 5 minutes.
Step 5: After you buy the option correctly at the start of a new candlestick, now it’s time for you to wait for the results. You don’t need to do anything. If you buy a HIGHER option, the market creates a green candlestick after 5 minutes => you win. Conversely, it is a red candlestick => you lose.
Detailed clip about how to trade with the candlestick colors in IQ Option
Note when building an IQ Option trading strategy based on candlestick colors
This is a strategy based on the previous signal
This means that when you predict whether the next candlestick is Green or Red, there must be a good reason for you to bet with your money. The signal here could be Hammer candlestick => bet the next candlestick green. Or Shooting Star candlestick => bet the next candlestick red. Or when the price just closed the candlestick at support/resistance zone, you can open a bet on the next candlestick color.
For example, EUR/USD currency pair and 5-minute candle time period. The Hammer signal candlestick + the price went to the previous support/resistance zone => Bet on the next green candlestick (buy a HIGHER option).
Always adjust the expiration time exactly equal to the time a candlestick closes
For example, you choose the 5-minute candlestick chart to trade in IQ Option. The expiration time’s minutes will always be 05, 10, 15, 20, …, 45, 50, 55, 00. And you can only adjust the expiration time before 30 seconds when the current candlestick closes.
This method is not difficult. It all depends on your skill and concentration. Focus on the signal to guess the next candlestick color. Focus on the trading time to open the most accurate options.
Improvements when trading with candlestick colors in IQ Option
The above are examples of how to trade IQ Option with 5-minute candlestick color. Thus, you need to focus on adjusting the expiration time in the last 30 seconds. But if you trade with the 15-minute candlestick color, then you just need to open the expiration time frame and choose the time you want.
One of the easiest ways to make money in IQ Option
Let’s choose the 5-minute or 15-minute Japanese candlestick chart to do candlestick color calculations. You will learn that the market always has green and red candlesticks alternating. But when the market is in an uptrend, the green candlestick will be more than the red candlestick. And vice versa, when the market falls in a downtrend, the red candlestick will be more than the green one.
So now you will have one trading rule. Only open HIGHER options in the bullish market(bet green candlesticks). And only open LOWER options in the bearish market (bet red candlesticks). At the same time, you can combine some more safety signals to have nice entry points with a very high winning rate.
Options trading is how you determine price trends within a time range. As a result, you have to predict correctly both the trend of the price and its time range. This increases the risk of your decisions.
Most technical analysis methods based on candlestick charts show you how to identify price trends. But it doesn’t give you an exact time that trend will end.
To simplify the method to trade IQ Option, you just need to focus on two questions. What is the next candlestick color? Green or Red? At this point, all your IQ Option methods and trading strategies will be easier to build.
The IQ Option trading strategy based on candlestick colors will be concluded in one formula. Identify the main trend. Next is to find the appropriate signal to open options. Green candlestick = bet HIGHER. Red candlestick = bet LOWER.
It’s already quite long. Next time, I will explain this strategy more. Thank you for the time you spent to read this article!