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“Rails” Pattern for Binary Options

Nowadays many people ask themselves what profit the binary options can bring. We can surely answer that the profit can be extremely high if you have a good broker working with the modern terminal and a profitable trading strategy. Moreover, nobody prohibits earning money on regular basis as the market being a kind of chaos works under its own strict law after all. This article will tell about the simple trading system based on the “Rails” pattern for the Price Auction.

Trading terminal and broker

So, as we have already mentioned in order to succeed you need three factors. We will start to build a profitable binary option trading by using two of them. We recommend that you use Binomo broker, a reliable partner which allows not worrying about your money and offers favourable trading conditions. The minimal lot Binomo offers is 1 USD. Besides, Binomo broker possesses a modern terminal providing the following advantages:

* Informative working place;

* Quick transaction execution with small slippage;

* User-friendly interface;

* High-quality visual display of the opened transactions;

* Different graph types including Japanese candles where we will search for the “Rails” pattern for binary options.

While visiting the Binomo official website you should pay special attention to the Education section. There you can obtain a pile of the useful text and video information dedicated to the binary option trading just for free. You should also study the Analytics section where experts share their up-to-date trading ideas and news. This information can help even new comers with the small experience for the independent and successful trading to earn quite good money.

Pattern workout

In Price Action the “Rails” pattern refers to the exact market formations which work out in 75% cases. It is an incredible result especially if you remember that the deposit can steadily grow with around 65% of the accurate signals generated by the trading strategy.

In order to define the Rails pattern the indicator was even invented. However it is useful only for the laziest traders as the given information is usually well-seen on the graph. In most cases the appearance of such figure means the trend reversal in the short run or the necessity of the savage correction.

Therefore if you meet this pattern after the long growth you can be perfectly sure that the price will fall down within a certain period of time. This is also the case for the bear market: after the marked fall in prices the given figure signals that the price will rise soon.

Search for pattern

The “Rails” pattern itself is two equal candles the first of which is coloured according to the leading market trend. The second candle has the colour of the opposite trend. The screenshot given below shows that after a certain growth a green candle appear on the graph and right after it we can see another candle equal in size and coloured with red, the colour of sellers.

Here is another example.

The screenshots show the reversal formation after which the price changes the direction sharply and starts falling within quite a long period of time. After understanding this simple moment one should study thoroughly how the trader working with binary options should act after he finds the given figure on the graph.

Search for trading signals

Let’s take the signal of the DOWNWARD direction as the first example. To use the CALL binary option one should wait until the following conditions occur:

* The UPWARD trend is dominating at the market within a certain period of time;

* The last green candle should have quite a long body; after that the red candle of the same size should appear.

As soon as this last bear candle finishes its formation one can open the DOWNWARD transaction at the trading terminal of Binomo binary option broker.

To obtain the UPWARD signal one should wait for the opposite market conditions:

* Prices should significantly fall within a certain period of time; the trend should be defined as the DOWNWARD one.

* In the end of the price fall trend the red candle should appear. After that the green candle with the equal size will be formed.

As soon as all the conditions are met the Rails pattern can be considered to be formed. It means that the trader should open the UPWARD transaction immediately.

However, the candles don’t have to be equal in size, but the more this rule is obeyed, the more accurate the signal will be. In general, while applying the Rails pattern in binary options the percentage of the successful transactions is quite big. That is why failures occurring form time to time cannot prevent from having good earnings over the long run.

Choice of options

To work in Price Auction system based on the given reversal pattern one should take the shortest option type that is 60 seconds and make a transaction right after the second candle of the “rails” is formed. However this is the case only if the search is conducted on the 5-minute and, possibly, on 15- minute graphs.

If the trader applies the larger timeframe the expiration term should be increased at least up to 5 minutes and more. This moment should be defined experimentally by thoroughly studying the historical prices of the selected asset in order to understand the character of the price movement.

Money management

In conclusion, it should be pointed out that some transactions will be closed with the negative result that is why you should not use the whole deposit. The best option is the transaction risk not exceeding 5% of the available amount. Moreover, it is better for you to be sure that the strategy conditions are clear and to start trading with the stake of 1 USD.

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