The Most Common Trading Patterns: How to Spot Them and Profit
How to Capitalize on the Markets’ Habits
When you are trading binary options, it is important to be aware of the common trading patterns. By being able to identify these patterns, you can increase your chances of making a profit on your trades.
The three most common trading patterns are the Inside Bar, the Outside Bar, and the Pinbar. Each of these patterns has its own unique characteristics and provides a different opportunity for traders to make a profit.
Inside Bar: The inside bar is a pattern that occurs when the current candle is smaller than the previous candle, with the high and low of both candles occurring within the same price range. This pattern indicates that there is indecision among buyers and sellers, which can lead to a breakout in either direction. Traders who trade this pattern should wait for a confirmed break of either the high or low of the inside bar before placing their trade.
Outside Bar: The outside bar is a pattern that occurs when the current candle is larger than the previous candle, with the high and low of both candles occurring outside of the same price range. This pattern indicates that there is strong buying or selling pressure, which can lead to a reversal in direction. Traders who trade this pattern should wait for a confirmed break of either the high or low of the outside bar before placing their trade.
Pinbar: The pinbar is a pattern that occurs when the body of the candle is very small, while the wick (the long tail) is very large. This pattern indicates that there is a lot of volatility and uncertainty in the market, which can lead to a reversal in direction. Traders who trade this pattern should wait for a confirmed break of either the high or low of the pinbar before placing their trade.
The inside bar is a bullish pattern, so traders should look for opportunities to go long when it is confirmed. For example, if the current candle is smaller than the previous candle and the high and low of both candles occur within the same price range, then go long once the breakout occurs.
The outside bar is a bearish pattern, so traders should look for opportunities to go short when it is confirmed. For example, if the current candle is larger than the previous candle and the high and low of both candles occur outside of the same price range, then go short once the breakout occurs.
The pinbar is a neutral pattern, so traders should wait for a confirm break of either the high or low before placing their trade.
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