If you’ve been trading in the market long enough, then there must be times when you might hate the market for losing money because of a few losing orders. But the market does not take the money from you, it only does its best for decades. It is to transfer the money from the pocket of the uninformed and undisciplined to the knowledgeable and disciplined.
Do you want to have money? Accumulate and cultivate knowledge and then practice patience in the process of acquiring knowledge. In this article, I will show you how to open an order using the Tweezer Tops candlestick pattern combined with resistance in IQ Option.
Trading strategy in IQ Option: Tweezer Tops candlestick pattern combined with resistance
How to set up this trading strategy
- Select the trading assets: AUD/USD, USD/JPY, EUR/USD.
- The 5-minute Japanese candlestick chart.
- The expiration time of 15 minutes or above.
- A standard Tweezer Tops candlestick pattern includes 2 candles:
- First candlestick: is a long bullish candle without an upper tail.
- Second candlestick: is a bearish candlestick whose length is equal to the opening price of the first candle without a lower tail or with a very short lower tail.
Formula for opening orders
LOWER = Tweezer Tops candlestick pattern + resistance.
LOWER = Downtrend + Tweezer Tops candlestick pattern + resistance.
In the downtrend, the price rebounds to test the resistance just penetrated and forms a standard Tweezer Tops candlestick pattern => Open a LOWER order.
Suitable capital management method
If you want to earn money, you must first protect your account. Do not let your account wear out because of opening orders unreasonably. When you “feel” that this order may win, then you go for big. And when you’re afraid to lose, you go for small without following any rules. This is something you should avoid.
There must be an effective capital management method for each order so it can make your balance increase over time. More does not mean better. So you have to set a limit on how many orders to open a day. And 5 is the most reasonable number.
=> If a maximum of 5 orders has been placed, the best way to protect your account is to stop trading when you have reached 5 orders.
The Classic capital management method will optimize your capital protection.
Balancing the investment will make you no longer bother about winning and losing. Instead, you just need to focus on entry points. This offers a sense of comfort during trading.
For example, your capital is $25 so each order will be 5$-5$-5$-5$-5$.
Some principles to keep in mind
Avoid trading when the market has strong news affecting the trading currency pairs.
Do not analyze after opening an order.
Do not open many orders at once or consecutively. Just follow the set method.
No further trading when the maximum number of orders has been reached.
Only open LOWER orders.
The Tweezer Tops candlestick pattern appears at the resistance zone => Open a LOWER order.
Review on opened orders in IQ Option
The price went sideways => It could not pass the previous level. A long bearish candle appeared, forming a Tweezer Tops candlestick pattern at the resistance => The price would start a downtrend. Opened a LOWER order with the expiration time of 25 minutes.
Result => I won.
The uptrend exhausted => The price touched the resistance zone. It then got rejected with a bearish candlestick. Right after, a Tweezer Tops candlestick pattern formed => The price changed from up to down. Opened a LOWER order with the expiration time of 25 minutes.
Result => I won.
If you are looking for the holy grail then this is not the place. But if you seek the knowledge to succeed, this place will help you. On the road of a successful trader, there are always endless efforts because it is never easy. I wish you success on your chosen path.