In reality, many masters use candlestick patterns as their top skills when trading in IQ Option. To do this, you need to memorize some typical patterns. In return, you do not need to install any technical indicators on your chart. In this article, I will introduce a Price Action style pattern (called “Three Candle Streak”) that has achieved a 72% win rate. You can also have 20-50 entry signals a day. If you are a beginner, it is still easy to use it to make a steady profit.
How to trade with Three Candle Streak pattern
Three Candle Streak is an extremely accurate reversal pattern. It is trusted by many traders around the world, especially traders from Brazil because this pattern is easy to apply and gives good results in most market conditions.
Timeframe: 5-minute chart, 5-minute expiration time
Currency pair: Any
Rules for entering HIGHER orders:
- The last 2 candles are bearish and the next candle is bullish with the closing price higher than the opening price of the previous 2 candles.
- 1 of 2 bearish candles can be Doji or Spinning Top.
- Enter a 5-minute HIGHER order on the next candle (ie predict the next candle will increase)
Rules for entering LOWER orders:
- The last 2 candles are bullish and the next candle is bearish with the closing price lower than the opening price of the previous 2 candles.
- 1 of 2 bullish candlesticks can be Doji or Spinning Top
- Enter a 5-minute LOWER order on the next candle, predicting that the price will continue to fall.
Suitable capital management strategy with Three Candle Streak pattern
Since the Three Candle Streak is a reversal pattern, our main strategy will be to find the points with the highest potential to change direction to enter the order. With the Martingale style, the probability of winning is quite high (over 70%).
For example, you invest $10 for the first order. If you lose, you will enter the next order with $20. Finally, the third order will enter an order with an amount of $ 50. With this strategy, you only need 1 winning order to compensate for the loss of previous losing orders.
Note: You should limit the circle to a maximum of 3. Because the trading volume in the following orders will be larger than the previous ones, it is very easy to burn all the money in your account.
If you already have an effective capital management strategy for this pattern, then apply it. Maybe the way I suggest won’t work for you. Use the management style in the way that feels best to you. Don’t follow the path. Find your way to the fastest success.
Before going to trade in a real account, you should practice proficiently with a Demo account in IQ Option. Do not rush to make a profit when you have just skimmed or have not mastered this pattern. Do your due diligence as each trading method has its strengths and weaknesses. If you know how to limit risks and exploit strengths, profits will be sweet for you.
If possible, combine the Three Candle Streak pattern with indicators to increase the probability of winning. Combining it with the support and resistance levels also gives extremely positive results. Good luck with your trading.