The Three White Soldiers is a candlestick pattern that signals a strong uptrend reversal. This pattern usually forms at the end of a strong downtrend.
This guide will show you how to recognize this pattern and how to trade using it on the IQ Option platform.
Identifying the Three White Soldiers candle pattern
The Three White Soldiers pattern consists of 3 bullish consecutive candles. They will usually appear at the end of a strong downtrend. The open of each candle is usually higher than the open of the previous candle. In addition, the close of one candle is higher than the close of the previous candle.
For a valid Three White Soldiers pattern to form, all three bullish candles must not be special (for example Doji or pin bars).
How to trade using the Three White Soldiers pattern on IQ Option
The Three White Soldiers is a bullish trend reversal pattern. So whenever you see them, you should place a long buy position. Using the chart above, I’m using 15 minute candles. This means that I can enter a buy position lasting 30 minutes or more.
The best place to enter your buy position is on any of the three soldiers. However, it’s best if you enter into trading position on the first soldier.
Now that you’ve learned how to identify and trade using the Three White Soldiers pattern, try it out on your IQ Option practice account. Share your results in the comments section below.
Many traders think that the most complicated strategy is the one that works best. However, from experience, simple strategies are the best. The reason being that you don’t need to rely on many different indicators to catch the perfect trade entry point. Besides working with too many indicators can draw you away from your primary objective – making money.
Burning candles
One of the simple and effective trading strategies I use is the rule of 3 candles. That’s my focus in this guide today.
What is the rule of 3 candles strategy?
This strategy is based on candle charts. So you won’t be using line or area charts when implementing it. If you’re new to different types of charts, take a look at these two articles:
Guide to the IQ Option Price Charts
Candle Stick Patterns You Will Come Across When Trading on the IQ Option Platform
The rule of 3 candles strategy uses 3 same-coloured candles that appear consecutively. Use the Japanese candlestick chart. In addition, these are full-bodied candles (or have relatively short shadows). The reason why we use 3 consecutive candlesticks is that they’re more accurate to read than special candles.
Now on the IQ Option platform, your first objective is to identify a trend. If it’s a downtrend, the candles will have red bodies. Uptrends will have candles with green bodies. Along with the trend, you’ll need to identify 3 consecutive candles of the same colour. Once you reach the third candle, your trade should be against the trend because the fourth candle in that sequence is likely to be of the opposite colour.
probability when tossing a coin
This strategy’s rules are similar to a coin toss. The first toss produces a 50/50 chance of either heads or tails. If the first toss is headed, the probability of the second toss resulting in heads drops to 25%.
The third toss resulting in heads further drops to 12.5%. As you continue tossing the coin, the probability keeps dropping. That’s how the rule of 3 candles works.
If you get 3 consecutive candles of the same colour, chances that the fourth will be of the same colour have dropped significantly. That’s why you should enter a trade betting on the opposite colour.
An example of how to apply the rule of 3 candles on IQ Option
You will be working with trends. So, it’s a matter of identifying which candles are dominating at a certain time (green for uptrends, red for downtrends). Ignore the price and only focus on the candle colour.
Now, similar to the coin toss, your objective is to predict the colour of the next candle. Since you don’t know exactly what it is, you’ll refer to the previous three candles. If the previous three are red, chances are that the next candle will be green. Take a look at the chart below.
rule of 3 candles in a live chart
Where to enter your trades: If you have 3 consecutive red candles, your trade entry point is at the end of a candle. That is right when the next candle is starting. As you might have guessed, you should place a higher trade. If there are 3 consecutive green candles, your lower order should come right after the third candle ends.
What if your trade loses? Enter the same order for the next candle. So if you have 4 consecutive green candles your trade entry point should be at the end of the fourth candle. Still, it should be a put order.
Tips for trading using the rule of 3 candles on IQ Option
Before implementing this strategy, you should first analyze the chart’s history. Do you see trends that apply to the 3 candles strategy. It also helps to know if there’s upcoming news or events which might affect your currency pair. If there’s any, avoid trading that pair.
Remember that you won’t be following the prices. Rather, it’s the candle colour. Your entry points should be right where the third candle ends and the fourth begins. This means just a few seconds to react.
You might be tempted to increase your trade amount after a losing trade. Doing so might be dangerous. What if the next trade loses? The best thing is to stop trading and analyze the chart looking for the next favourable 3 candle pattern.
Have you traded using the rule of 3 candles pattern? If so, share your experience in the comments section below.
Many new traders will opt to try out options over other financial instruments. They’re easy to trade and offer a fixed profit return. Besides options, IQ Option also offers other financial instruments. Among these is forex which will be my focus in this guide today.
Forex overview
The Foreign Exchange (Forex or fx) market is the largest in the world today with over $1 trillion being exchanged daily. This market involves exchanging different currencies.
The fx market developed as a result of trade and other financial transactions occurring between countries, institutions and individuals. For an fx transaction to occur, you must sell one currency to buy another or buy one currency by selling another. This means fx transactions involve currency pairs. For example, if you’re trading EUR/USD and 1.80086, it simply means that you can buy 1 Euro for 1.80086 US Dollars.
Where do forex prices come from?
Forex prices are usually determined by supply and demand. I use the term “usually” because there are other forces such as central banks, governments and even forex brokers who might manipulate forex prices.
But let’s stick to supply and demand. Each currency pair has a bid and ask price. The bid price is the amount someone is willing to sell the currency at a specific time. The asking price, on the other hand, is the amount someone is willing to pay for a particular currency at a specific time.
Now knowing who sets the prices isn’t that important for traders. Why?
Trading forex on IQ Option doesn’t require you actually own the currency you’re buying or selling. Your primary objective is knowing how to profit from buying and selling currency pairs.
I’ll cover this next.
How do you make money trading forex on IQ Option?
Trading forex involves buying and selling a currency pair. For example, if EUR/USD is trading at 1.1576/1.1578 it means that you can buy 1 EUR for $1.1576 or sell 1 EUR for $1.1578.
Now, if you decide to buy 1EUR for $1.1576 you’re hoping that its price will rise in the future allowing you to sell at a profit. Conversely, if you sell 1EUR for $1.1578, you’re hoping that the price will fall in the future allowing you to buy it back at a lower price.
The difference between your buying or selling price and the price at which you’ll buy or sell the currency for in the future will be your profit or loss.
So if you bought the EUR/SD pair at 1.1576 and the price rises to 1.1580, your profit would be $0.004.
That’s a small amount for most traders. But consider if you bought 100 lots. Your profit would be multiplied by 10000 earning you a profit of $40.
Note: A lot comprises 100 units. So if you bought 1 EUR/USD lot, it simply means you bought 100 EUR.
Who are you trading against in the forex market?
The forex market comprises dozens of different actors. Remember that the value of a currency is largely affected by its supply and demand. This means that when buying or selling a currency pair, you’re essentially competing against small actors such as independent traders. You’re also competing against big actors such as banks and governments.
But this shouldn’t be a cause for concern. No actor is big enough to control the forex markets, therefore, giving you an equal opportunity to make money as a small trader.
Forex vs Options markets
I’ve written the IQ Option Forex vs IQ Option Options Which is More Profitable?
This comprehensive guide will teach you more about the differences between these two markets. However, here’s a rundown of the 6 major differences you’ll encounter when trading forex on IQ Option.
Forex doesn’t have a set expiry time
When trading options, you’ll have to decide when the trade will expire. This can be as little as 1 minute or more than 1 month.
Forex, on the other hand, has no fixed expiry time. The trade is only exited if you manually close it, or if the price reaches a pre-set stop loss or take profit point. This means a trade can remain open for minutes, hours or even days.
Stop losses
The stop loss is a tool that’s used to limit the amount a forex trader can end up losing. For example, if you invest $100 in a trade, you can set your stop loss at 10%. This means that if the trade goes against you and your invested amount falls to $90, Iqoption will automatically close the trade.
When trading forex, losing trades can eat into your account balance. This means that if you invested $100, your losses can exceed this amount. Stop losses allow you to protect your account balance and limit losses on each trade.
Take profit
Take profit works the same way as the stop loss. There’s one major difference though. The take profit feature automatically closes the trade when a specific profit amount is reached.
For example, if you invest $100 and set your take profit at +$50, the trade will automatically close when a $50 profit is made.
This feature makes it easy to lock in and secure profits made on each trade. Imagine a trade where you had the opportunity to make $50 but the markets reversed. The profits you’d have earned start to dwindle simply because you didn’t take profits when the markets were favourable.
Leverage
IQ Option offers leverage to forex traders. What this simply means is that you are able to multiply the profitability of every trade. For example, if you trade using $100 and apply the leverage of X50, this essentially means you’re trading with $5000. In turn, the profits you make on your trade will be 50 times higher than if you had simply traded using $100.
Although leverage can be a great way to increase your profits, you should use it with caution. Always use it alongside other tools such as stop losses and take profit.
Trade exit
One thing that makes options trading easy is that trade exit is fixed. If you enter a 60-second options trade, you’re assured that you’ll know whether you’ve made a profit or not within 60 seconds.
Forex trading is a bit different. Trade exit is determined by one thing – price. Unless the price reaches your strike price, the trade will remain open. This means that it can take minutes, days or even weeks before the trade exits. You can however manually exit the trade if you want to on the IQ Option platform.
Many forex traders, therefore, choose to trade currency pairs where price fluctuations are likely to occur during a trading session. This way, they’re sure that their strike price (take profit or stop loss) are going to be hit at a specific point. So if you want to trade forex, it’s recommended that you trade when the currency pairs you invest in are likely to be affected by a news item.
Returns
Options traders will get a fixed return per trade. Forex traders, on the other hand, have the chance to earn returns exceeding 100%. The reason for this is that how much profit you make as a forex trader largely depends on how far the price moves. The further the price moves according to your prediction, the higher the profit potential.
Now couple this with leverage and you have the opportunity to make profits that can be as high as 500% or more. This makes forex trading a good way to make huge returns in the financial markets.
There’s a downside however, your losses can also be much higher than the amount you invest per trade especially if you’ve not set any stop losses.
Now that you’ve got a basic understanding of how the forex market works, your next step involves trading the forex markets. The Ultimate IQ Option Forex Trading Guide for Beginner Traders is a post you’ll want to read to get you started.
Start trading with the selection of an asset. All assets are sorted by profit margin.
Analyze the price movement direction and use your judgment to determine the future rate. Will it be higher or lower than the current one.
A simple trading interface on IQ Option platform
Specify the amount of investment and the expiration time of the option. In order to buy an option use Higher button or Lower button.
The timer shows how much time is left before the purchase period will be completed. Prior to this movement, you can buy more options for any amount of money. Buy an option in order to start trading.
At the moment of expiration, you will see your profit on the options window. It will be automatically credited to your balance.
OlympTrade is an online trading platform well known for its liability. This popular trading platform was started in 2014 and since then it has been continuously growing and serving better to its customers. Want to know why OlympTrade platform is most popular among experienced traders and is being a choice for many other beginners. The platform is certified FinaCom which makes them the most trusted platform for any trader.
Over 25,000 people trade per day and the monthly turnover for the broker is around $171 million, OlympTrade is the leading platform for trading with no stopping since it was built. In 2018 Le Fonti awarded the platform as the “Best Options Trading Platform” also marked them as a grade-A level broker with proven track records.
OlympTrade offers a bunch of opportunities by providing more than 70 tradings assets including commodities, currency pairs, indices, cryptocurrencies and stocks. Olymp Trade believes in offering a stressless trades opportunities to its traders, it maintains the ease of trading for the new traders by letting them start trading with the smallest deposit of $10 and the minimum trade of $1 this makes the platform stand out of other brokers if you are new to the trading world you can explore ample of opportunities with OlympTrade.
Know-How Safe the OlympTrade Platform Is!
We can not neglect the fact that the OlympTrade platform is regulated by FinCom and the efforts the broker has made to earn the trust of the traders.
While doing our research we to know about the fact that their support staff claims they have applied for the CySEC certification, but till now we didn’t find any solid proof about the platform being regulated and none of their known authorities claims about this.
However, this absolutely doesn’t mean that the broker is not safe for trading, regulations and privacy policies of FinaCom are as strict as other regulators
Awards of OlympTrade
Though Olymp Trade is in the trading industry for less than 5 years, it has earned remarkable success and attention of major financial institutions for positive reasons. The broker has won many awards including:
ShowFX World in 2016 awarded it as The fastest-growing broker
Le Fonti in 2016 awarded The best trading platform
KROUFR awarded The best broker in 2016
CPA Life awarded as The best financial broker in 2017
In IAFT Awards, Platform received Innovative broker award in 2017
In Forex Expo, the platform received The best broker award in 2017
Le Fonti awarded The best trading platform award in 2018
All these awards make Olymp Trade the top leading brokers in the whole world in terms of transparency, performance, trust and overall performance.
Why OlympTrade is best out of other brokers?
One thing that makes the platform more trustable is their membership with FinCom. FinCom is the legal body which monitors trading brokers to maintain it’s traders privacy and security while trading.
If for some reason you raise a complaint with Olymp Trade’s customer support and your query is not resolved with the time period of 14 days, you can directly contact FinCom, they will resolve your problem.
FinCom ensures that the trader’s complaints are always answered and handled professionally.
OlympTrades offers a demo account for beginners with available credit of the virtual amount of $ 10,000. New traders can efficiently learn trading tactics and idea about the platform, how they can trade with the broker. The credit of demo account can be replenished if a balance goes below $5000.
You can access Olymp Trade in three ways one you can access through its web version i.e from there own website. Second, with an OS app for macOS and windows, these apps offer more features than you find on their own website. Third, you can access it with your mobile phones both Android and iOS
If you decide to open a real trading account, you can trade with a minimum $1, you don’t have to invest a huge amount in one time. This will help you manage your account and investment with ease.
Why you should open an account with Olymp Trade!
The platform offers unique and important features which make it more worthy to be trusted. You can practice trading with the demo account available with the credit of $10,000. Once you have an idea how the platform works you can start investing your real money.
The platform offers a minimum trade of $10, which is quite less in comparison of other trading brokers. You can make a single trade of even $1 which is not that big amount if you lose your first trade. Plan your move with an affordable amount of trade.
Other Features of the Platform
To make a successful trade It is good to have the right options available in one place. Olymp trades offers almost 20 indicators and about 4 types of charts which are absolutely easy to access within the user interface. If you wish to access more tools you can fetch it from the “technical analysis” button. One thing which we found interesting is the assistant button that will accompany each indicator. What exactly it does is, it triggers a pop-up button which will take you to the training materials for the specific indicators.
Not only a demo account, but Olymp Trade also offers a number of training resources. Traders can access important webinars and instructive courses for learning about financial instruments. These courses and webinars are updated on a daily basis to provide exact information and the latest trading techniques.
You have the option to choose between a regular account or a VIP account. The perks of having VIP account are that you get your own personal consultant that will help you in your trades and daily market reviews. Moreover, you can withdraw faster with the VIP account.
As a new account holder, you will be offered bonuses for trading. Although, you can reject bonus.
Olymp Trade offers almost 82% for its, standard account holders whereas 92% for its VIP account holders, which is quite high if you compare with other brokers. Also, VIP holders get access to the training materials, daily insights of trade as well as get a personal consultant. With Olymp Trade, traders get a chance to earn more profit through various contests and special offers that are provided by the platform.
Currently, the platform offers about 77 different assets. It is a great platform if you don’t want to confuse yourself with a vast collection of assets. But if you are an old trader and want to invest in huge assets then n that case this may be devastating for you as it limits the option. It has got a very user-friendly interface it comes with button at its top which helps you find your desired assets.
Moreover, it is your choice whether you want to choose a single asset or want to choose entire assets group. Let’s understand with an example, you chose to trade with Bitcoin but you would like to add more options in your trade so you get an option to choose all the cryptocurrencies. This functionality makes it easier to analyze the movements of trade groups which makes it easier for traders.
Only one type of trade is offered by Olymp Trade(call/put digital options). This is quite limited for experienced traders. Moreover, Call/put digital options make it easier for traders to predict how the trade will go.
You have an option to cancel the trade before it’s expiring period with this you can limit your loss. You can set Timeframes of charts manually. The range of timeframes can be kept between 15 seconds to 1 month. This makes easier when you track price movements of assets between the time period.
Drawbacks of OlympTrade
As per our research, the platform has limited assets for trade. There are about 77 trading instruments available on a platform that includes currency pairs, cryptocurrency pairs and indices. 77 asset might seem to be less but for beginners, it’s a great opportunity to learn and explore trading ethics and they can learn to trade easily.
Languages offered:
Olymp Trade is available in English, Indonesia, Russian and Thai among more languages.
Accounts and Deposits:
Olymp Trade offers various payment methods including wire transfer, e-wallet or credit card options for Real or VIP accounts. You can make withdrawals with the same channels. With this platform, you can withdraw the total amount. Moreover, all the withdrawals are free, that means you can keep your earnings safely.
All the withdrawal requests are processed within the 24 hours, depending upon the payment methods, for some instances it may take up to 5 business days to process money.
If it delays even more then that you can contact OlympTrade customer support through phone, email or online chat. Besides these methods, you can also contact them through their social media accounts.
In general, you have to manage your money to attain the profit. But as like in every business in trading also there is a chance of facing the loss. Hence, at that time also you have to play with the mind and eventually try to increase the profit and decrease the loss.
What exactly the strategy is all about?
Under this strategy, it states that you have to increase your investment to incur your loss. One needs to invest in the trades in the multiple of the previous loss so that if the profit comes up with this investment will be double and will stabilize the losses of the last sale also.
But this strategy is based on risk as you never know that in the next step you are going to get the profit or the lost again.
But the strategy says that even if you face lost again in the next investment you have to bit in the same pattern.
Hence, the strategy is based on the betting that once you get the profit all the losses will be covered under the winning trade.
As there is a half chance of winning or losing in a particular trade and hence once you win you will cover all the losses because of your betting strategy.
What are the other factors of the strategy and how it applies to trade?
The first fact is the difference bet psychology and profitably.
Yes, will the strategy there is 50-50 chance of winning or losing and as psychology says that whenever there is a chance of losing people get back and ever built because of thinking of the loss. But in the strategy, if you win you will cover all the losses along with the profit.
You can sustain the profit.
As in every business, there would be a loss and there would be a profit at a particular time. Therefore, one cannot stick to the point that they will only get a loss on only get a profit through trade. Same like the strategy never ensures you of the profit for long-term.
You will win or lose?
There is no guarantee that you will get profit or the loss in a trade. Hence, it is a luck and mind game that at one point of time you will get a very good profit by your winning trade and at another point of time, you will get lost at a losing trade. Even sometimes the winning trades in not be able to cover the previous losses hence you have to play smartly in next trading also.
Secure the money with your mind and strategy.
When you are in a trading business or in any other business the main objective of the trader is to save the money for getting the profit. But in the strategy, you are based on betting your money on a single trade in which you are not even sure about the result of the trade that you will lose or win. Martingale strategy trading is a good option if played with mind.
How to apply the strategy on IQ option?
To apply the strategy in the IQ option you have to see for 5 consecutive trades. In first three states observe that your betting is generating a winning trade or losing trade and if you are winning in three consecutive trades then precede further otherwise stop there.
Therefore, you have to play with the mind to generate the profit from your trade.
How to use it for a long time?
Even know the martingale strategy explained in different ways. Hence, not even in three or five consecutive trades, you can apply it for long term basis. In this, you have to set free beating time that is morning, afternoon and evening and according to that you have to invest money on daily basis and if you are getting the profit then you will be able to invest more in the next trade.
Hence, the strategy is too good to generate the profits for your winning trades and we hope you will get the profit and cover all your losses by applying the strategy in your trading.
