Starting from left to right, the candle moved outside the bollinger band and I felt as if the price would make a short term move up, and so I took a short term 5 minute option trade that worked out in the money.

With the second trade the same thing took place except this time the body of the candle went outside the bollinger band and wicked hard to the upside along with the rsi line reached the 30 level, and cci woodie bars reaching the -300 level.

This combination proved to be profitable for a 15 minute expiry time, the last trade, was one that I marked on my chart but I didnt trade it, but definitely could have worked out as the same setup repeated itself. Who would every think that a default rsi 14 settings would be so useful to timing your trades effectively, especially fro trading reversals in price.

By far, one of the most consistent things Im noticing is how effective the rsi can be once it moves past the dotted 30/70 level. and the candles move past the bollinger band. Yet another consistent way to trade and high probability because you can see the strength in price.

Combine this with understanding candlesticks and you have a powerful trading tool in your toolbox, and that is knowledge on how the market moves . which can go along way with winning more trades then you loose, which is a must for binary options traders. Learning how the market moves is not overnight. but once you begin to learn and remain patient, take notes, make mistakes, win and loose, things will start coming together.

The biggest tip teamcashflow can give you as an aspiring trader is to practice like there is no tomorrow. the good news is that you can always trade demo accounts for 3 months and wait until you are profitable for that length of time and then move on to trading live accounts with real funds, at least that is what I recommend.

Eventually patterns will emerge and you will understand what to do when a new situation arises that looks tricky. Fakeouts, false trends, breakouts, and other things that can go wrong are avoidable when you look for your entry towards the end of the candle, notice the patience in todays binary option live trade below:

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There will be no trading on the fourth of July 2014. as the market can be unpredictable for the most part.

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