Three Indians Strategy in Binary Options: advantages and disadvantages
Three Indians is a quite popular and efficient trading option of investing in the financial markets. This system is used both by stockbrokers and binary speculators. It is based on a fairly simple law of supply and demand. Because of this you do not need to adapt the algorithm to the individual requests twenty-four hours. Just after reading you can perform testing on a demo account.
In addition, pay attention to historical data of the underlying assets graphs. This will help to determine the ratio of profitable and unprofitable trades. Every professional investor has statistical data. It indicates what points are critical, and where the trader needs to increase purchasing power.
Often on the binary option market this strategy is called “Three Touch”.
Thus, the method is applicable to any of the underlying assets:
- Currency pairs.
- Precious metals.
In general, a complete set of financial instruments that are offered by binary options brokers. If you delve into the study of the strategy, some pretty important points will become apparent. For example, the pattern “Three Indians” refers to the reversal patterns in technical analysis. But despite this, the formation is quite easy to understand and in practical use.
The appearance of a reversal pattern “Three Indians” takes place on an uptrend and downtrend. The main thing is to select in advance the underlying asset with a pronounced tendency at high volumes.
Remember, if you learn how to identify “Three Indians” pattern on the graph, you are guaranteed will be able to predict the future motion vector of the asset. Successful binary traders came to this judgment.
In this simple strategy of binary options the most difficult and important point is the definition of a reversal pattern “Three Indians”. In case of opening the wrong position the rate will bring a loss. Be careful and previously necessarily work the system out on a demo account. Also, look for some similar models in the history of the graphs. Look at what underlying assets “Three Indians” is worked out more often and provides accurate entry points.
– in this system the result is very negatively affected by false punctures of a trend line.
– it is impossible to conclude the falsity or truthfulness of such a breakthrough until the candle that broke a trend line closes.
– a trader has to wait for the candle closure and only after a reversal candle appears a trader enters the market.
– divergence on oscillators can be a great acknowledgment for the opening of the transaction.
– it can be applied at any intervals and on any currency pairs.
That’s all for now. Got any questions? Just ask the expert!