How to Apply Busted Double Bottoms and Tops In Binary Options Trading

The busted double top and double bottom are one of the most common pattern pairs in chart analysis. Here, you will learn more about the busted double bottom and tops pattern and how to apply the patterns to your binary options trading strategy.

Busted Double Bottoms and Tops Patterns

Both the busted double bottoms and tops are reversal patterns and indicate an imminent ending to the existing trend and the start of a new trend. They are an indication that the underlying asset is attempting to continue an existing trend, to no avail, therefore triggering a reversal of the pattern.

How to Identify the Double Top

The double top pattern forms at the height of an upward trend. It is an indication that the upward trend is ending and buyers are less in control. When this pattern is complete, the prevailing trend reverses.

This pattern typically forms an M shape. The first part of the pattern indicates the start of a new high in an upward trend. At its peak, the trend encounters resistance and goes to a support level. The second part of the pattern indicates that the trend is moving back to the resistance level and then sells back to the level of support. When the price of the underlying asset declines below the support level, the pattern becomes complete. This then marks the start of a downward trend.

This pattern usually forms when buyers and sellers are under pressure to sell and buy respectively. When the buyers are looking to lower the price of the asset, they may face resistance and this could keep the uptrend from continuing. As such, the buyers’ control of the market begins to decline and the sellers take control, permitting a new downtrend.

busted double tops

How to Identify the Double Bottom

The double bottom is the opposite of the double top pattern. It is an indication of a reversal of the downward trend to permit a new uptrend.

This pattern typically takes a W shape and it is formed when a downtrend creates a new low in the movement of the asset price. The downward trend encounters a support level, which keeps the asset from further decline. After encountering the support level, the asset price will increase to new highs and will then encounter a resistance level. This is followed by a decline in the price caused by a selloff in the market. The price then encounters support and increases back to its previous high. To confirm the pattern, the price of the asset needs to move beyond the resistance level faced on the previous uptrend.

busted double bottom

Trading the Double Bottoms and Tops Pattern

When trading the double bottoms, it is possible to buy a put option with an expiry period of your choice including 1 hour, 30 minutes or 1 minute. This can be done if the support point is broken.

As a beginner trader, it is recommend that you make a modest entry when trading the double top pattern to avoid losses. If you have a bigger appetite for risk, it is important to keep an eye on the trade volume—when the volume is high in a downtrend, you could buy a put option.

As a beginner trader, you want to act expediently to take advantage of the sharp price decline. As you keep track of the breakdown, it is important to be ready with the order size and target price.

In binary options trading using the double top formation, it is very unlikely that a reversal would take place before the expiry period of 1 hour, 30 minutes or 1 minute. However, any news or external factors that support a rise in the price of the underlying asset would trigger a reversal in the trends, causing an out of the money expiration.

Trading the double bottom pattern is similar to trading a top bottom formation, given that both patterns have common attributes.  However, in a double bottom pattern, the price breaks on top of the neckline to cause an end to the current downward trend.

How to Trade Binary Options with Three White Soldiers

The Three White Soldiers is the opposite of the Three Black Crows pattern. The formation is made up of three moderately long bullish candlesticks. Here you will learn more about this pattern and how to use it to trade binary options.

How to Trade Binary Options with Three White Soldiers

The formation of this pattern is a signal of a strong impending reversal. Each of the three candlesticks that comprise this formation is typically advancing upward with the opening of each candle slightly lower than the previous one. At the same time, prices close at a higher level to create a stair-like pattern, to indicate a trend reversal.

How Does the Three White Soldiers Pattern Form?

Several factors are helpful in identifying this pattern:

  1. Each consecutive candle closes at a new high than the previous one
  2. Three consecutive, advancing and long white candlesticks make up this formation
  3. Each consecutive candle opens within the body of the previous one

three white soldier

How to Use the Three White Soldiers Pattern to Trade Binary Options

The Three White Soldiers formation occurs where the markets remain at low prices for an extended period. At this time, the market either has hit new lows or is approaching these new lows. In response, the markets attempt to advance upward as indicated by the formation of the first candlestick. In the next two consecutive days, the markets continue to rally and the candles demonstrate higher closes. The rallying of the market weakens the bears’ position.

This pattern is one of the strongest formations in terms of signaling an impending downtrend in the market. Its strength makes it a good pattern for chart analysis for binary options traders.

This pattern works best with binary options that have longer expiration periods of 24 hours or more, such as RANGE and ONE-TOUCH options. Unsurprisingly, these two types of options—RANGE and ONE-TOUCH usually have some of the highest percentage payouts.

Which are the best assets to trade with this pattern?

It is recommended that you trade volatile currency pairs when applying this pattern for example GBP/USD, EUR/JYP, GBP/JYP. This currency choice is adequately volatile, allowing you to attain the strike level faster and realize profits. This does not mean you cannot use this pattern to trade other assets including commodities, stocks and indices.

The formation of this pattern indicates an impending strong downtrend and a price movement in one direction that could go on for a long time.  As such, you could apply binary options strategies such as TOUCH when the prices touch a predetermined price level or OUT-RANGE when the price channel breaks through.

As mentioned earlier to make the most of this pattern, the expiration time of the options need to be 24 hours. This is because this pattern formation allows for medium-term trading.

Given that the Three White Soldiers is quite a strong pattern, the signals it conveys are approximately 85% accurate. This makes it possible to increase your chances of profit. These chances also increase given the fact that the expiration period is relatively longer and the payout are higher for the suitable options i.e. TOUCH and RANGE options.

In summary, the Three White Soldiers formation is a strong indication of an impending downtrend. Its relative strength compared to other patterns makes it suitable for binary options traders, especially those who choose to trade volatile assets using riskier options.

How To Open an IQ Option Trading Account

Operating under CySEC licensing regulations, IQ Option offers traders a reliable and regulated platform to trade binary options.

How To Open an IQ Option Trading Account

With a simple and intuitive platform and a potential payout of up to 92% (amount to be credited to account for a successful trade), opening an IQ Option account is certainly a good place to start for a beginner investor. This article will show you how to open an IQ Option trading account in five simple steps:

Step 1: Begin the registration process

Registering for an IQ Option account is free. To begin the registration process, head over to the official webpage at and click on the tab ‘Register’ at the top far right corner of the page.

Step 2: Fill out the registration form

Completing the account registration form will take you just 1 minute. Fill out your name, email and login password. After accepting IQ Option’s terms and conditions, you must choose your preferred account. Assuming that you have tested the platform using a demo trading account, you can elect to open a real account.

Step 3: Activate your account

Before you can sign in to your trading account, you need to activate it first. A link will be sent to your email inbox; click on this link to be able to active your account.

Step 4: Sign in to your account

You now have an active IQ Option account! To sign in, use the email address and login password you inputted in Step 2 above. You will be welcomed with a video that shows you how to navigate and trade on the platform.

Step 5: Fund your trading account

To deposit funds into your account, click on the ‘Deposit’ tab in your personal account. Choose your preferred payment method, currency and the deposit amount you would like to fund your account with. Once you click on pay, the funds will be immediately available in your account.

Advantages of opening an IQ Option trading account

Sophisticated trading platform– IQ Option has one of the most advanced yet simple to use platforms in the industry. While offering many unique features, the platform is easy to navigate, giving you a seamless trading experience.

High payout– IQ Option offers some of the highest payouts in the industry, with a maximum payout of up to 92% (amount to be credited to account for a successful trade). Few brokers come close to offering such payout ratios.

Out of the money rebate- IQ Option offers up to 60% (buyback, percentage is variable and depends on market conditions) in rebate for out of the money trades.

Customer service- Reliable customer support is a good indication that a binary options broker is worth it. IQ Option has built a reputation for having an efficient customer support team that is available 24/7 and can be reached easily via email or telephone.


Opening an IQ Option account offers you the opportunity to invest with a regulated and transparent binaries broker, and on one of the most advanced trading platforms. The attractive bonuses and high payouts are unmatched and are especially valuable for beginner traders.

General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.

Harami Candlestick Chart Pattern In Binary Options Trading

Candlestick patterns are very helpful in identifying potential directions and changes in the market when trading binary options. The Harami candle pattern is one of the most useful.

Harami Candlestick Chart Pattern In Binary Options Trading

Here, we will show you step-by-step, how you can apply the Harami candlestick chart pattern to your binary options trading strategy.

How to identify a basic Harami pattern

A Harami candlestick pattern has several distinct attributes. The pattern features two candles: the first is a bullish and large candle and a second smaller candle follows it. This second candle should not close outside the body of the first candle—this is perhaps the best way to identify the Harami pattern. To confirm that the Harami is forming, check to see that the second small candle has closed above the traded value of the body of the first candle.

When a bearish Harami forms, there is usually an end to the bullish market. However, a bearish Harami pattern is typically weak because it is not necessarily an indication of a complete market reversal. As such, the Harami pattern requires a third candle for one to fully confirm that the pattern has formed.



Applying the Harami candlestick pattern to your trading strategy

Traders can apply the bearish Harami candlestick pattern to any trending trading strategy. When this pattern appears, it is possible to profit from long trades or to trade a complete reversal.

As you start applying the Harami pattern, you will inevitably come across the Doji Candlestick. When you identify a Doji candlestick, it is a possible indication that a reversal might take place soon, giving you a good opportunity to enter the market.

Dojis are typically made up of one candle. This candle closes and opens close to the same level. The candlestick is also composed of a lower and upper wick that is out of the body and takes a positive (+) sign. The candle that follows the Doji indicates the most appropriate trade preference you should demonstrate at that particular time.

As soon as a Doji pattern forms, it is important for traders to take notice of the other moving averages. This will help to identify whether the pair is close to support level, where candlestick patterns demonstrate the highest potency.

So let’s go back to the Harami pattern…

The Harami is a strong Doji pattern because it assesses each candle on each side of the Doji to provide you with a clear indication of the direction of the market. The candle that comes before the Doji should face in the direction of the prevailing trend while the real body will be bigger than the Doji’s body. The candle that comes third after the Doji will approve the reversal trend if it goes against the direction of the first candle or disconfirm the Harami pattern if the prevailing trend continues after the Doji.

In summary, the first Harami candle before the Doji pattern is large and it continue with the immediate trend. Meanwhile, the Doji itself is a small candle. The second candle that makes up the Harami pattern will give an indication when the Doji causes a reversal or continues the trend set by the first candle. The Harami can be very effective at identifying a reversal at the right time, allowing you to take advantage of the lucrative risk: reward ratio.

What Is the Difference between CFD and Binary Options

Contracts for difference (CFD) and binary options are some of the most popular trading instruments available to online traders.This article will show you the difference and similarities between CFDs and binary options, so you can determine the most appropriate instruments for your trading needs.

What Is the Difference between CFD and Binary Options?

A CFD is also known as a contract for difference. This is a contract between the trader and the broker to exchange the difference between the entry price and the exit price of an underlying asset.

In this case, the broker is the seller and the trader is the buyer. The broker therefore sells to the trader the difference made between the opening price and the closing price of an underlying asset.

The trader (you) will pay the broker if the difference between the opening and closing price of the underlying market is negative.

Just like binary options, traders use CFDs to predict the future price movement of underlying assets, without the need to own the underlying assets. You can go short i.e. sell your contract so you can earn profits from falling prices. Alternatively, you can go long to profit from rising prices. You can also hedge your assets portfolio to balance off any potential losses in the value of the underlying asset.

Differences between CFDs and Binary Options

Although CFDs and binary options bear some similarities, these two trading instruments are also markedly different.  The major differences include:

Level of risk

In binary options trading, the trader is usually aware of the potential loss or profit they will incur depending on the price movement of the underlying asset. However, with CFD trading, it is not possible to determine in advance, what you stand to gain or lose with the fluctuation of market prices. This is because CFD trading entails trading on the difference between the entry and exit prices of the underlying asset.

Advanced traders can earn more returns trading CFDs. However, the level of risk in CFD trading is considerably higher than trading binary options.

Investment amount

CFD trading, unlike binary options trading involves paying commissions and fees for each trade you undertake. This is because CFDs are financed with borrowed money so traders are able to trade numerous underlying assets at a small price. Each broker has their own fee and commissions structure.

When it comes to binary options trading, traders are not required to pay additional fees or commissions other than the initial investment. No fees are payable even if the trade ends out of money i.e. even if you lose. In fact, many binary options brokers offer a rebate of between 10-15% on out of the money trades.

Instead of rebates, CFD traders are allowed to hedge against losses by applying their own stop losses. But stop losses can only be applied when losses are already imminent.

Range of tradable underlying assets

Trading CFD offers you access to a much wider pool of bases including bonds, forex, indices etc. On the contrary, binary options trading requires the existence of an underlying asset—this mean forex and index cannot be traded using binary options. If you are looking to access more bases for trading, CFDs offer a better option.

Similarities Between CFDs and Binary Options

CFDs and binary options are similar in the following ways:

They are derivatives – You do not have to own the underlying asset to trade on the asset.

They have short trading periods – For both binary options and CFDs, traders can select trading periods as short as one hour to a week depending on your trading goals.

Price movement prediction – Both trading instruments entail making predictions about market prices of underlying assets.


While both CFD and binary options trading bear considerable risk, CFDs are invariably riskier with potentially high returns. CFDs are also more appropriate trading instruments for advanced or professional binary options traders.

Amazon Shares Jump to a Record High of $1,000

For the first time in history, shares of ecommerce giant Amazon have surpassed $1,000.

Amazon Shares Jump to a Record High of $1,000

The shares jumped to $1,001.2 before falling to $996.7. Amazon listed its shares exactly two decades ago for only $18 each.

Today, Amazon has an estimated market capitalization of $478bn, over two times that of Wal-Mart.

The company began as a bookseller but it has gradually expanded its portfolio as a retailer.

Figures from Slice Intelligence consultancy show that Amazon accounts for up to 43% of all ecommerce sales in the US.

The retailer is the fourth largest company in the US by market capitalization, with Apple, Google and Microsoft leading the pack.

At the start of the week, Google’s Alphabet, with its class A shares climbed to four figures to trade at $996, bringing the company’s worth to $681bn.

Although Amazon recorded a historic rise, the technology-focused index, Nasdaq, where Amazon belongs, ended trading 7 points down at 6,203.19.

The Dow Jones Industrial Average fell 50.81 to close at 21,029.47 while the S&P 500 index fell 2.91 points to close at 2,412.91.

According to the US Commerce Department, consumer spending saw its biggest increase in four months in April when it rose 0.4%, following a 0.3% increase in March.

Other figures showed the personal consumption expenditure rose by 0.2% in April, after falling 0.2% in March. In April, prices increased 1.7% compared to the same period last year, down from 1.9% in March last year.

The personal consumption expenditure index is the Federal Reserve’s preferred measure of inflation and does not include energy and food prices, saw a 1.5% yearly increase, lower than the 1.6% increase in March.

The Fed’s target for the PCE index is 2%. According to analysts, the US central bank will increase interest rates at its meeting in the coming month.

Last week, Amazon opened its seventh brick and mortar bookshop in New York and attracted fans who had been looking to shop in person at an Amazon shop.

Amazon’s first bookstore opened its doors in 2015 in Seattle. The retailer is planning to open up to 13 such store in the US by the end of the year. The company has also set up shop in university campuses and it is in the process of experimenting with convenience and grocery stores.

Many analysts view brick and mortar retails as a peripheral part of Amazon’s core business and will remain this way for a long time.

Chart types for Forex MT trading platform

Usage graph or chart is the most important thing in technical analysis because the only object that is used is that price movements can be mapped to a chart / graph.

Chart types for Forex MT trading platform

Some types of Forex charts commonly used in technical analysis are as follows:

1. Line Chart

Or it could be called a line graph, this graph is formed from simple line that connects from one closing price to the next closing price. a continuous line, where we can see the pattern of price movements of a currency pair over a specific period. See the picture below.

line chart mt4

2. Bar Chart

In a bar graph, containing information: opening price (Open), the closing price (Close), and the dynamics of price movements (High / Highest – Low / Low). The lower part shows the lowest price, while the top is the highest price, within a certain period of time.

This period of time varies, can in 5 minutes, 10 minutes, 15 minutes, 1 hour, 1 day and 1 month.

In terms of forex trading this period is sometimes called the Time Frame.

Cut line on the right shows the opening price, and on the right shows the closing price. See the picture below for more details.

bar chart mt4

The bar graph is also often called “OHLC” chart. Referring to the Open High Low and Close

3. Candlestick Chart

Chart Candlestick or it could be called a candlestick chart, showing the same information as the bar graph, but the candlestick chart appears in a graphic format that is more complex.

In candlestick chart on the middle vertical line will be wider so as to form box. This box will be given a color which would indicate that prices rise or fall. If the box is not colored / white, indicating the price rises, whereas when the black colored box indicates the price down. See the picture below.

In the process, people are more accustomed to signify that what goes up in green and something fell in red. So in applications candlestick chart usual also shown with green and red color configuration.

So if within a certain period (Time Frame) whereas closing price > opening price, then the box will be colored green / rose. In the contrary, if the closing price < the opening price, then the box will be red.

It is expected to assist and accelerate traders in technical analysis. So the purpose of making boxes and stained on the candlestick chart is a visual aid to give better point of view to the traders.

chart type mt4


Candlestick Charts are widely used among traders, most traders sees candlestick are easy to read, and more informative.

Advantage of using candlestick chart.

• Provide an easier view at interpreting market price movement.

• Better series pattern formed in use for better conclusion of where next market price projection.

• Well defined upon identify market price turning point (reversal)

What Is Forex Trading? A Beginner’s Guide

Forex, fully known as foreign exchange, is the world’s largest market where all currencies of the world are traded. Find here our guide on What is Forex Trading!

What Is Forex Trading?

Up to $5.3 trillion is traded on the forex market, making it the most liquid market globally. Forex trading lets you buy and sell any world currency 24/7. This article will explain the concept of forex trading and some of its advantages.

What happens when you trade forex?

Forex trading involves trading on the foreign exchange market, an activity that can be undertaken by both speculators and investors.

To understand what forex trading entails, picture a scenario where the value of the British Pound sterling is expected to weaken against the US dollar. To benefit from the market, a trader will sell the pound and buy the dollar. If the value of the dollar strengthens, its purchasing power to buy pounds equally increases. This means that the trader can buy back more pounds than they initially had and therefore they are able to make a profit.

Just like in stock trading, traders purchase a stock if they anticipate a future rise in its value and sell a stock if they anticipate a future decline in the stock’s value. In this same way, investors who trade forex will purchase a currency pair if they think the exchange rate will increase in future and sell if they expect the exchange rate to tumble.

Understanding forex exchange rates

Even if you are new to forex trading, you might have heard the term “exchange rate”. The forex market is seen as a decentralized market—this means that the market does not have a central depository where traders can transact. On the contrary, various market players carry out all forex transactions globally.

At any given point, no two currencies can have the same value. Even when such a rare occurrence takes place, it only lasts for a short time. As such, the exchange rate between two currencies always changes.

Here’s another example to help you understand the concept of exchange rates: On September 16, 2015 the value of one pound was approximately $1.55 and by September 16, 2016 the value of the pound was about $1.37. This means that the value of the pound decreased by an estimated 11% against the dollar in this period.

Fluctuations in the demand and supply of a particular currency can have implications for its value. So, when there is an increases in the supply of a currency or a decrease in demand for this currency, its value will fall. If there is a decrease in supply or an increase in demand for a currency, its value will increase.

Forex trading lets you purchase or sell any type of currency combination, also known as currency pairs, as long as these currencies are available. Based on market events, you may choose to sell or buy a certain currency in exchange for another. For example, if the US economy is predicted to become stronger, then you may buy more dollars and sell pounds. In other words, you would have sold the GBP/USD currency pair.

While other financial markets speak of a bear market, there is no bear market in forex trading — you can make profits or incur losses based on market trends.


In summary, forex trading involves the buying and selling of world currencies with the goal of making a profit. Traders may choose to sell or buy any currency pair they may be interested in depending on their investment objectives. Even then, it is ultimately important to understand how domestic and global events affect exchange rates to be able to really reap the benefits of foreign exchange trading.