Rebound from Line Pattern in IQOPTION explained

Rebound from Line Pattern in IQOPTION
A  simple pattern to assume the upcoming trend for a successful trading in iqoption.
The main aspect of this pattern is that we open a deal after a price movement reversal. A trading signal will be a candlestick having reached the level and failed to be closed outside it. A candlestick can touch the level by its shade or body. Breaking a strength level by a candlestick shade and closing inside the level shows that the price is not able to break out it. A signal confirmation will be a new candlestick following it and moving in a reverse direction.

A procedure after a signal appearance:

1) A candlestick was not able to be closed outside the level and touched it by its shade or body;

2) Wait for a confirmation – when the second candlestick bounces off the level;

3) Buy an option in the reverse direction.

Buying a put if the price bounces off a resistance level

Buying a call if the price bounces off a support level

Buying a call if the price bounces off an ascending trend line

Sell if the price bounces off an ascending channel line

Remember you can find many support and resistance levels on the chart but only the levels confirmed by the price will affect the price in future. To check a strength level is easy enough: you should review the price history and see how often the price stopped or reversed at this level. If the price “has not noticed” the level no need to consider it in your analysis.

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Rainbow Pattern in IQOPTION

This pattern is consist of three Moving Averages, which can be used to find the breaking of current trend and beginning of a new trend which can be a very significant position to enter a trade.

please refer to this video for better understanding.

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Breaking of Minimum and Maximum in Iqoption

This is a process in which in which we will find the minimum and maximum point of the current market scenario using Graphical tools like lines and Technical Tools like Moving Averages.this is also known as local level Breaking pattern.

According to this strategy you open a deal when the price breaks out the current level and continues its movement in the same direction. A deal should be opened after a candlestick body breaks out the level of support or resistance and a new candlestick moves in the same direction.


A procedure after a signal appearance:

1) The price chart has reached a support or resistance level;

2) Wait for appearance of the candlestick breaking out the level with its body and closing there;

3) Wait for appearance of a new candlestick moving in the breakout direction;

4) Buy an option in the breakout direction after closing a confirming candlestick.



Buying a put after breakout of the support level



Buying a put after breakout of the descending trend channel



Buying a call after breakout of the descending trend line

Using a breakout strategy you should always have a signal confirmation as breakout can be false. A false breakout of the level appears when the first candlestick breaks the level and the second candlestick returns back to opening price of the first candlestick.


Aspects of the false breakout:

1) A candlestick has broken the level with its shade and closed inside the level;

2) A candlestick has been closed at the level or a bit outside and a new candlestick returned to the range inside the level.



False breakout of the support level

If after breakout a reversal or squat candlestick has appeared this breakout can be false. In this case you should wait for a candlestick moving in the breakout direction and buy an option after its closing.

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