Due to the option of adding markers and symbols to online charts, trading with IQ Option is highly advantageous. The platform doesn’t provide drawing tools or indicators unless it is based on a Web server. A variety of technical analysis tools are available on IQ Option to make it as useful as possible. Would incorporating them into daily routines be beneficial? How effective are these graphics?
Understanding the importance of drawing
Technical analysis relies heavily on the drawing board. A significant reason for this is that many trading systems and strategies assume traders rely on chart elements such as support and resistance lines. According to their individual needs, traders choose the lines, shapes, and timeframes for their trading. To ease the process, diagrams are marked with marks indicating the lines, shapes, and timeframes.
Markers like these can be used in many different ways. They are usually used to display trends, of course. Keeping track of trends is essential to trading options, as they are heavily dependent on them. This article will show you how to spot Diamonds, Triangles, Three Peaks, Head & Shoulders and much more using the IQ Option Candlestick Strategy.
A technical analysis of Three Peaks
This pattern is a representation of Three Peaks, as can be seen in the diagram. Figuring out where the entry point is, however, can prove difficult.
There is a breach in a support line, for example. Furthermore, graphs provide a clear and understandable entry point for tracking results and creating figures.
By using the tools, you can create simple patterns and even generate graphical strategies. There are also indicators available that can be used on the platform.
Indicator of technological analysis
Specifically, Bollinger bands, moving averages, RSI (Relative Strength Index), and Alligator are four of the platform’s widely popular indicators. Each can be used by either solo performers or groups. Market indicators can be used to predict prices.
Bands Bollinger played
An indicator that is very popular is Bollinger bands. A price corridor is established in this report by combining moving averages and standard deviations. Focusing on the corridor borders will allow us to identify the entry points. The call option should be purchased in the event of a price break below the lower limit, and the put option should be purchased in the event of an upward price break.
As time passes, the averages change
We can calculate an asset’s average price over a certain time period, such as 4 weeks, by using a moving average. Whenever the moving average crosses the chart, it is an indication of a breakthrough. The more frequent the interval, the more accurate the signals.
Strengths to weaknesses ratio
A candlestick chart can only be used to calculate RSI (Relative Strength Index). This is one of the most popular indicators in the global market. Both the magnitude and strength of a price change is considered. The RSI is displayed separately from the rest of the chart, beneath the entire chart, unlike other indicators. There are many strategies that use this indicator.
Alligators in the swamp
Alligator is right behind its predecessors when it comes to popularity. The moving average is displayed for three different periods. When the lines cross, a trend has begun. When a trend begins, all three lines come together. Our next step should be to follow the trend. Many traders around the world have found success with trading strategies based on Alligator.