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.