The Double Red strategy is a fairly easy strategy to use while trading binary options. The idea behind the strategy is that you will wait for the following setup: one red bar and then a second red bar which closes below the first bar and its wick. Often times after this happens there is a little bit of a pull back on the 3rd candle where you are able to get in at a better price, however you may take the trade immediately after the double red if you wanted to ensure you don’t miss the trade.
Time Frame: 5 Minute Candlesticks
Pros: Easy to spot and usually signals the start of a new trend
Cons: Often times the pull back doesn’t come as expected or as high as expected