It is so true that through indicators, traders can trade very easily. Some of the indicators help you to know the trend like when they will reverse or continue and many other indicators will show you changes in trading volume.
However, there is one fault and that is lag. All the indicators use previous price data so, because of this reading and interpreting any indicator needs practice.
But is there any other trading technique that can allow you to trade safely without any indicators?
Simply put, yes.
This guide will help you to simply rely on a color candle study. Let’s get started!
Trading on IQ Option using candle color only
Consider an example, In the 11 am to 12 pm time interval the trade will be done by trading EUR/USD pair with 5 minute time interval candles. The return will be usually higher.
Your main objective will be identifying true candles when trading using a candle color. The candle will be full-bodied unlike special candles like pin bars and once you identify the candles you should trade the next candle(s) that form after it.
Martingale Strategie will be used in regard to money management on the IQ Option platform. In each consecutive trade, you increase your trade amount. Here 6 trades will be entered before closing the trading session.
The chart below explains how the Martingale system will be implemented.
How the 6 trades went
As you can see in the charts the first two trades went very well. Now notice the ranging market at the left of the chart. After the bearish candle develops 5-minute sell position entered and then the next candle was bullish, so the position entered was a buy position lasting 5-minute.
The next session brought some mixed results. The market was ranging before a large bullish candle developed. My buy position resulted in profit. Next was a bearish candle which prompted me to enter a profitable sell position.
The next bearish candle prompted me to enter a sell position which ended up losing (3). Next was a bullish candle (4) which prompted me to enter a buy position. Luckily, this trade turned out even. The close of the doji (5) was the same as the close of the bullish candle (4).
The next candle that developed was bearish. I immediately entered a 5 minute buy position which ended up being profitable. I
ended up entering 7 trades. Of these only one lost, one ended up even and 5 were profitable.
Notes for using this simple trading method
You can simply use candle colors to make money without relying on indicators. Also, remember that when you encounter a full-bodied candle your trade entry should only occur then.
It means that it needs a lot of practice and concentration to analyze the price charts to find the right pattern. Once you get the logic behind it making money on IQ Option will not be that difficult.
Now that you’ve learned this simple trading technique, try it out on your practice account.
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