In technical analysis methods to choose the moment and trading strategy, investors prefer and frequently use the review and analysis directly on the price chart. Let’s take a look at the pricing models on the IQ Options trading platform that can provide signals to investors and analyze whether these models have a positive and negative impact. How to decide on trading options on the IQ Option.
Signal From Price Analysis on IQ Platform Option
You may not know it yet, but many experienced investors just look at the volatility of the price chain that has made very accurate judgments about the price increase / fall. Even the most up-to-date technical analysis methods are algorithms based on price chain dynamics. Price models appearing on graphs based on the IQ Option can give you very accurate and effective signals – of course, if the investor understands and has knowledge of the asset that he is investing in. and transactions.
The most prominent price models in today’s analysis that we would like to share are the Double Bottom, Double Top and Top-Shoulder models.
Double Bottom / Double Top Double Bottom Models
This is one of the most popular and popular models, appearing very much in any day of the day (using M5 trading periods). The formation of two peaks or two consecutive troughs on a price chart indicates that the price level fluctuates in a cycle of two or more distinct cycles from a single resistance level.
Then, look on the price chart for a price model of two consecutive peaks or two consecutive troughs with equal volatility. Set the volatility of two double / twin pairs to the channel between the two resistances and supports.
When the price goes through the top of the second pair and crosses the upper support, this is the time when the price will reverse – continue the Downtrend and start the new cycle at a lower level. no more fluctuations.
Similar to the double bottom case, as shown, once it has gone through two successive cycles, the price will rise – and out of the resistance channel – support, crossing the resistance line, it will not repeat. a cycle that continues its uptrend. At this point, select the Increase option for your trading on the IQ Option.
The price analysis strategy is described in the figure below.
Price model is built in the channel between support and resistance level
The first support road was built at point A
The first resistance line is at point C
The second peak reaches point B
Point D shows a resistance break, a cyclical movement chart that goes beyond the resistance line, continues its uptrend – this is the time to make a bull run, and you will succeed.
Pay attention to the double bottom pattern, because sometimes the investor is fooled by this pattern: the price drops twice to the bottom, and when it reaches the top of D, the investor thinks it will continue to coin. bearish – but not, the price has reversed and the uptrend started.
Head Pattern – Shoulders
Another form of price model that investors often encounter on the price chart is the head and shoulders model. Its name is exactly what its shape represents on the platform (figure).
The black line appears on the chart to indicate the price. On the price chart, look for a pattern of three peaks – in which the midpoint is higher than the other two peaks of the pattern. Then, it can be seen that prices will increase from the first to the second, then continue to rise to the third but not as high as the second. This is a sign that the uptrend has “braked”, and likely very high, at the bottom of the model, prices will continue to fall.
Let’s take a closer look at the model below to better understand the method of analyzing this price model:
The first vertex (the first shoulder) is developed at point A
The first one – higher than the previous level developed at point B
The highest head (head) is developed at point C
The second peak is marked in D
Point E shows another bottom, slightly higher than the previous one.
When the price at point F, below the bottom before (D), choose the Reduce option – and you will succeed.
Investors watch and observe daily, hourly price charts, and sometimes tend to use too many technical analysis tools to analyze signals from the graph but ignore the signals. The simplest from the price chart itself. Just look around, find the appropriate price model, apply your analysis and experience, IQ Option investors can completely get the signal of trading with high reliability. and exactly. Good luck!
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