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  1. #1
    Administrator Martin Kay's Avatar

    Post Three White Soldiers/Three Black Crows With Bollinger Bands for Binary Options !!!

    Hi guys! Michael posts his new article, called “Three White Soldiers/Three Black Crows with Bollinger Bands”. It reviews an interesting strategy with this name, based on candlestick price formations. Check it out and comment does it suck or not suck!

    Originally posted by Michael Hodges. Click here for the full review.

    Candlesticks and candlestick chart patterns have been a useful technical analysis tool for over 500 hundred years. Developed in the rice futures markets of feudal Japan this chart style provides an easy to see pictorial representation of prices, price movement and price patterns which has become a standard for equity, forex and binary traders. This system is based on one of many well known and easily recognized candle patterns so I was intrigued to see how it would work. As a rule, three soldiers/three crows is a reversal confirmation pattern, with the addition of Bollinger Bands they become valid trading signals useful for equities, forex and binary…at least according to the author.

    My Last Word

    This is not a BOTS.com approved strategy, unless your goal is to blindly trade based on random events with the purpose of loosing money. At best, this is two half strategies that do not match. The three soldiers/crows signal is great when used with trend lines, support/resistance or MACD divergences. Bollinger Bands are great for determining high/low volatility, which is great for standard options, but I have not yet figured out a way to use them with binaries because they are not really a trend determining device.

  2. #2
    Active Member
    This strategy is too simple to be working. If the guy who "compose it" has made an effort to read the books with trading statistics will see that it after 3 wining days there is much greater chance the fourth to be loser and also after three red day candles it is more probable to start retracement than continuation. So if somebody whant to use this strategy have to change it and buy a put after three white candles and call oposite after three red candles

  3. #3
    M.J
    M.J is offline
    Veteran Member M.J's Avatar
    read it very long time ago.
    In my opinion this guy is trying to mix price action with technical indicators. I know it is illogical to say "price action with technical indicators" PA is performed on naked chart. But amazingly this guy is trying something similar. His strategy mainly relies on candlestick pattern named as soldiers and crows (This is the first reason why it sucks. Should have given some elegant and stylish names). Then the 2nd reason of why it is a failed strategy is, as said by Michael, random use of bollinger bands. Even if we somehow set bollinger bands according to our settings, can u understand the logic behind crows and soldiers and relation with bollinger bands???

    I agree with Bots members that "it sucks really bad

  4. #4
    Legendry Member willyw's Avatar
    Quote Originally Posted by M.J View Post
    I read it very long time ago.
    In my opinion this guy is trying to mix price action with technical indicators. I know it is illogical to say "price action with technical indicators" PA is performed on naked chart. But amazingly this guy is trying something similar. His strategy mainly relies on candlestick pattern named as soldiers and crows (This is the first reason why it sucks. Should have given some elegant and stylish names). Then the 2nd reason of why it is a failed strategy is, as said by Michael, random use of bollinger bands. Even if we somehow set bollinger bands according to our settings, can u understand the logic behind crows and soldiers and relation with bollinger bands???

    I agree with Bots members that "it sucks really bad"
    M.J. I like to provide some information on candlestick and I am in no way to critise if candlestick sucks or dont. The information is from my experience I got when I was working for a finacial trading as a full time broker and trader. If it offend you, plse accept my humble apology. I am passing my 26 years knowlege to those might be interested to know.
    For your information, Micheal did not invent the names in Candlestick analysis like crows and soldiers. Candlestick is invented by Japanese rice traders trading in the futures market. Those names like crows, soldiers, doji stars are being translated from the original Japanese version. When I first started financial trading, my first comapny that I work for is a Japanese comapny and my boss is a Japanese trader. He taught us candlestick analysis personally and also the theory behind the candlestick analysis. I also had the chance to look at the original Japanese version of the candlestick analysis book. At that time there is still no English translation untill much later. Every candlestick tells a story(signal) and a group of cnadlestick also has their own signal. I and my colleagues have personally witness how this Japanese boss/veteran trader trades with only candlestick alone. We are really amused. In Japan, big traders and market makers uses candlestick as a means of communication and signal what the market will be. From the candlestick formed are able to tell if buyers more than sellers or vice versa or are players coming in or getting out of the market.

  5. #5
    Senior Member LeeChang's Avatar
    Japanese candlestick analysis is one of the most powerful weapons in the trader’s arsenal. It is a whole universe of candlestick patterns and if you are able to read them properly it will pays you off million times. The problem is that it is much more difficult to learn them, than the obvious technical indicators, much more complicated to master them and to know the odds of all the candlestick combinations. I am not a specialist in them, but use them regularly in my everyday trading.

  6. #6
    Legendry Member willyw's Avatar
    Quote Originally Posted by LeeChang View Post
    Japanese candlestick analysis is one of the most powerful weapons in the trader’s arsenal. It is a whole universe of candlestick patterns and if you are able to read them properly it will pays you off million times. The problem is that it is much more difficult to learn them, than the obvious technical indicators, much more complicated to master them and to know the odds of all the candlestick combinations. I am not a specialist in them, but use them regularly in my everyday trading.
    LeeChang, yes candlestick is a good analysis tool to analyze the market, if 1 can master it fully, but unfortunately not many. Its not easy to master but not that complicated also. Candlesticks bars tell many signals. Form individual candlestick bars to a group of candlestick bars, we can also see if buyers dominate the amrket or sellers, if buyers or sellers are exiting the market. During my time, we are fortunate to have learnt candlesick from Japanese traders but not many pass them on.

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