Pocket Option recommends using the "Candlestick Engulfing" pattern to identify trend reversal moments. This signal occurs when a candle with a larger body than the previous one forms on the chart and closes in the opposite direction — in other words, the new candle engulfs the previous one.
However, this pattern alone is not enough to open a trade when trading binary options. You need to wait for the next candle, which will confirm the new trend direction. Trading on Pocket Option using this strategy begins after that confirmation candle closes in the direction of the engulfing move.
Also, keep in mind that you can start trading with additional funds by using promo codes for account top-ups from Pocket Option, and to improve your results with this strategy, you can use a promo code to cancel loss trade $10.
Trading Rules on Pocket Option
The trading process for this strategy is as follows:
- Wait for an engulfing candle to appear — a candle with a larger body that closes in the opposite direction from the previous one.
- Wait for the next candle to open and close in the same direction as the engulfing candle.
Enter the trade after the confirmation candle closes, placing the order in the same direction. Note that the strength of the signal depends directly on the size of the engulfing candle. With that in mind, Pocket Option suggests that traders with sufficient account funds may consider a more aggressive entry: opening the trade immediately after the engulfing candle closes, rather than waiting for the confirmation candle.
Trading with the Doji Candle Strategy
This strategy is also used on Pocket Option to identify potential trend reversals. A Doji candle — characterized by a long shadow and a short body — signals that traders are uncertain about the strength of the current trend. These patterns often form near key price levels, and multiple Doji candles can appear in succession. The appearance of such a candle does not guarantee a reversal, but one should not be ruled out.
Trading with this strategy follows these steps:
- Wait for a Doji candle to appear.
- Wait for the next candle to open in the opposite direction from the current trend.
- Enter the trade after that candle closes in the same direction.
To minimize risk, Pocket Option recommends always waiting for the candle following the signal candle to close before entering a trade.
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