PO 7

There are a lot of binary options trading methods, and each of them can be useful to traders in its own way, but most of them are quite difficult to understand and are not suitable for beginners, which cannot be said about Price Action, since this trading technique is simple for understanding and does not require the use of any indicators or auxiliary tools.

Pocket Option

The essence of Price Action in binary options is to search for candlestick patterns or setups that are periodically repeated in any market and the chances of making a profit when using these formations are many times higher than many trading strategies for binary options .

Also, Price Action of binary options can be considered the “twin brother” of another effective technique called candlestick analysis of binary options . The difference between them can be considered that in candlestick analysis there are many times more patterns and setups, which are difficult to remember, since they can consist of a large number of candles, while Price Action focuses on setups of two or three candles.

What are patterns and what are they like in Price Action for binary options

A pattern is a pattern that can be expressed in anything, including candlestick formations. Price Action patterns can consist of one candle or several, but usually the number of candles does not exceed three.

The simplest patterns (which consist of one candle) include Pinbar, Doji, Hammer and others. These patterns are very popular and even those traders who have never heard of binary options Price Action are likely familiar with them.

A little more complex are the 2-bar and 3-bar patterns, which include Inside Bar, Outside Bar, Rails, Absorption and so on. Such patterns are more effective than the first ones, but at the same time they are not much more difficult to understand:

Price Action Candlestick Patterns

How to use Price Action in binary options?

You can simply look for patterns on a clean chart, but this approach will be less effective, since any of the formations can arise not only on reversals, but also on the movement of the trend. Therefore, a more correct option would be to use patterns together with levels or price zones.

If there is a problem with building levels, then you can use indicators of support and resistance levels , which build everything automatically. It is also worth noting that you can use not only horizontal levels, but also channels, which will be no less effective.

Despite the abundance of patterns, it makes no sense to study them all, since many of them appear quite rarely, so next we will consider the three most effective and frequent Price Action patterns in binary options, the correct use of which can already bring stable profits.

Pinbar

While Pinbars can be seen quite frequently across all markets and time frames , they are very powerful reversal patterns if identified and used correctly.

A pinbar almost always has a long shadow (2-3 times longer than the body) and a small candle body. And in this section of the chart you can see how the Pinbars are being worked out at the level, while the Pinbar simply did not justify itself in terms of movement:

Pinbar in Price Action binary options

Absorption

Absorption is a pattern when a new candle covers the price value of the previous one, and in the classic version it is enough for only the body of the candle to be covered without shadows, but a more powerful and correct option would be to cover the entire candle. Also, Engulfing can be bullish or bearish, but this only matters in the direction of the pattern. The example below shows how it was possible to buy options in the price channel after the appearance of Takeovers:

Absorption in Price Action binary options

Rails

The Rails pattern consists of two equal candles located next to each other, while a slight difference in size is also allowed and sometimes it can happen that the Rails will be combined with Absorption, which will only strengthen such a candle formation.

In the image below you can see a price channel in which two of the three patterns were together with engulfing, but the candles differed in size by several points:

Rails in Price Action Binary Options

Pros and cons of Price Action in binary options

There are pros and cons to any trading method, and the pros of Price Action include:

  • The presence of simple and understandable, but at the same time effective patterns.
  • Lack of complex indicators.
  • Patterns work on any market and time frame.
  • Possibility of using the method with any strategies and any indicators.
  • To use, you only need a candlestick chart.

There are much fewer disadvantages in this method, but they are still present:

  • The very frequent appearance of patterns in any phase of a trend , which can confuse not only beginners, but also experienced traders.
  • A large number of patterns that are almost impossible to remember and eventually apply in trading without auxiliary tools.

Tips for Newbies in Using Price Action in Binary Options

There are several ways to improve your Price Action trading results, and one of them is trend trading . As you can see in some of the examples above, it is better not to use counter-trend patterns, since the market never reverses just because of one candle. But at times of corrections and pullbacks, Price Action patterns can be very useful and can show when a return to the trend movement is planned.

Also, you should not use more than three patterns in trading, as this will most likely only confuse you and it would be more correct to use 1-2 patterns, which will first be thoroughly studied.

The following recommendation is suitable not only for candlestick analysis, but for trading in general, and it consists in using money management and risk management , which allow you to correctly distribute funds for trading and thereby protect the trader’s capital.

Conclusion

As you can see, Price Action in binary options can be very effective and bring profits from binary options trading even for beginners. But it is worth remembering that any approach or method should be carefully worked out and studied, as this will allow you to understand all its “subtleties”.

Also, candlestick analysis has great potential as a system, since with a more in-depth study you can learn about many other formations, and a huge plus is that you can even trade them from a smartphone or tablet, since everything you need to make transactions using Price Action , this is a candlestick chart.

Pocket Option

See also:

How to make money on the Internet during the crisis of 2020

How to make a profit by trading on clean charts

How to adapt a Forex strategy to Binary Options?

Live chart for binary options online

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Владимир
Владимир
Это знать просто необходимо на зубок, потому что сразу глянув на график, можно определить очень много всяких моментов для принятия решения и прайс экшен в этом плане конечно очень хороший помощник
13 March 2024
Answer
Артур
Артур
Я бы не сказал что поиск паттернов это очень просто.
Трейдер БО, Простых вещей на финансовом рынке нет. Просто свечные паттерны надо видеть.
Богдан, И не видеть там где их нет. ))) На манер черной кошки в темной комнате.))))
13 March 2024
Answer
Богдан
Богдан
Я бы не сказал что поиск паттернов это очень просто.
Трейдер БО, Простых вещей на финансовом рынке нет. Просто свечные паттерны надо видеть.
13 March 2024
Answer
Трейдер БО
Трейдер БО
Я бы не сказал что поиск паттернов это очень просто.
13 March 2024
Answer
Руслан
Руслан
Прайс Экшн пододходит новичкам?
Option Bull, да, так как он имеет намного более простую структуру в 3 свечи, чего не скажешь о японских свечах, где таковых намного больше да и самих паттернов тоже
06 December 2022
Answer
Option Bull
Option Bull
Прайс Экшн пододходит новичкам?
06 December 2022
Answer
Олег Иванов
Олег Иванов
статья хорошая. а где можно найти больше информации по прайс зкшен?
статья хорошая. а где можно найти больше информации по прайс зкшен?
как минимум думаю стоит прочитать книгу про японские свечи. оттуда же все пошло. тут на сайте есть, в вк они ее постили кстати недавно - /stiv-nison-yaponskie-svechi
тоже самое хотел сказать, что вся информация что есть в сети, она из книг, поэтому из них и надо узнавать все. там больше информации и она точнее без размытия
26 October 2020
Answer
Коля
статья хорошая. а где можно найти больше информации по прайс зкшен?
как минимум думаю стоит прочитать книгу про японские свечи. оттуда же все пошло. тут на сайте есть, в вк они ее постили кстати недавно - /stiv-nison-yaponskie-svechi
26 October 2020
Answer
Степан
статья хорошая. а где можно найти больше информации по прайс зкшен?
26 October 2020
Answer
kupidon
kupidon
Поглощение я как выучил еще много лет назад, так и использую его всегда в подтверждение, работает))
08 September 2020
Answer
Юра
Спасибо за статью, но хотелось бы узнать побольше про прайс экшн в бинарных опционах...
08 September 2020
Answer
Trader
Trader
Price action в бинарных опционах и свечной анализ это же почти одно и тоже, разве что в свечном есть всякие формации 1-2-3 и т.д.
08 September 2020
Answer
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