Making a good IQ Option prediction is not an easy task. It requires complex steps in order for the analysis performed to have a chance of coming true. Your trading results are influenced by various factors. Some are beyond your control, others you can work on. I will say more. You should work on them. Constant assessment of money and risk management strategies is essential. Taking care of your mental condition is no less important. But it will not be enough if you are not able to foretell the price movement in the nearest future.
Trading is, generally speaking, opening and closing transactions. You can either buy or sell. The decision of which one to choose should be based on market analyses.
The question remains on how to conduct analyses to effectively open trading positions. Below you will find 6 powerful methods that should help you in improving your forecasts. Let's see what they are.
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How to create a perfect IQ Option prediction for any market
Remember at the outset that it is impossible to be infallible. There is no such thing as an IQ Option secret strategy that works 100% of the time. There is also no such thing as a magic IQ Option hack which will make you a profit on every trade. Even the best IQ Option prediction can turn out to be wrong. Price behaviour on the chart is not always predictable. Our task is to analyse it in such a way as to determine the possible future price direction with the highest possible probability. Remember, however, that you have the right to be wrong and that it is OK.
Analyse the trend with the chart patterns
One of the most popular methods of predicting the direction of the asset's price is the use of technical analysis. There are many patterns discovered which price bars create on the chart. These patterns can be used to predict the trend continuation or its reversal.
Below, you will find an example of the chart pattern you can use as IQ Option prediction. It is called the double bottom and belongs to the trend reversal patterns.
Follow economic news
Economic events influence market behaviour. Some cause minor changes, others trigger sudden large movements. This is the reason why it is a good idea to know what is going on in the world.
The good news is you do not have to spend hours watching and reading the reports from different places and then analysing whether they have an impact on the instrument you are currently trading. Knowledge of current economic events should be taken into account when making IQ Option prediction. IQ Option offers quick access to important news and economic events. Click on the asset info icon and you will see the reports.
Start price action trading
You should continuously observe the price action on the chart. This will help you identify the best entry points for your trades and to understand the market better.
Generally, price action is a visual representation of bullish or bearish dominance in the market. Green or red candles create lows and highs on the price chart. In order to start price action trading, you should be able to recognise the support and resistance levels.
Use the support and resistance levels together with some candlesticks patterns. It will provide additional confirmation for entry points for your transactions.
In the example above a resistance line is drawn. You can notice bullish engulfing patterns in its area. They inform you about the impending reversal of the trend.
Catch trend reversals with Fibonacci
Fibonacci, known also as Leonardo Bonacci or Pisano was an Italian mathematician. He introduced the sequence of the numbers to the Western European world. These numbers shall also apply in trading.
Identify the low and high on the price chart. The rest of the Fibonacci levels will appear automatically. You can easily make IQ Option prediction of a trend reversal with them.
It might be a good idea to use the pending orders at some Fibonacci levels.
Oversold and overbought areas are helpful when doing IQ Option prediction
Oscillators are special indicators with which you can catch reversal points in the markets. In this group, you will find, among others, the Relative Strength Index (RSI), Commodity Channel Index (CCI), Stochastic, Average Directional Movement Index (ADX). Below, you will find an exemplary GBPUSD chart with the RSI and CCI attached to it.
Oscillators show the oversold and overbought zones. When the asset reaches one of these zones, it means the price has dropped or risen too much and it will most probably take the opposite direction soon.
Apply Moving Averages
Moving averages are the indicators that show visually the average price of the financial instrument over a specified period of time. For instance, the SMA with a period of 200 takes the last 200 candlesticks into its calculations.
When you add a simple moving average to your chart, you will soon notice that the price rises when the candlesticks are developing above the line and falls when the price bars are situated below the SMA line.
How do you predict IQ options?
On IQ Option, binary and digital options are the most popular. In a nutshell, options are about accurately determining the direction of the price of an asset at a specific time called expiry. IQ Option prediction is crucial in the case of options, but at the same time, it seems to be somewhat easier than in the case of trading stocks or CFDs.
First of all, we ourselves determine the expiry time of the option, so we have the influence on determining the validity time of our IQ Option prediction. Secondly, we do not need to know what levels the price will reach. In the case of these instruments IQ Option prediction concerns only the direction of the price. We have to determine whether the price will go up or down. That's it and despite appearances, determining the direction is not easy either.
What is the best strategy for IQ Option?
Trading is a never-ending learning process. Get the necessary knowledge about the markets, indicators and strategies. Improve your trading performance by implementing the methods described in today's article.
You do not have to limit yourself to one method only. It is possible to combine a few different ones to get the best results. Work to make each successive IQ Option prediction better.
Try each and every one of them in the IQ Option demo account. This is a perfect place for your practice. Familiarise yourself with them and then start trading in the live IQ Option account to earn real profits.
Do not forget to share your opinion with us in the comments section which can be found further down the site.
Wish you a great experience!