There are many tools available on the Binomo platform that traders may use. These tools help in taking better decisions about when to enter or exit transactions. And this is an essential step to your success. So let me introduce to you a Sushi Roll pattern with which you will be able to trade trend reversals.
The Sushi Roll pattern on the Binomo platform
Mark Fisher was the one who developed the Sushi Roll method. It helps in predicting the moment the price will reverse. Moreover, this moment can be caught pretty early with the Sushi Roll.
The candlestick pattern known as the Sushi Roll consists of 10 candles. The main rule is that the first five do not reveal any big price movements and that the following five candles engulf the first half of the pattern.
The Sushi Roll pattern can be identified in both, the downtrend and the uptrend.
A bullish Sushi Roll is formed when there is a downtrend in the market. When you look at the first five candles in the pattern, you will not notice large price fluctuations. Notice how the second five engulf the first half of the formation. It is not necessary for the pattern to be valid that all the candles in the first, nor the second part, are of the same colour.
During the uptrend, you may notice a bearish Sushi Roll. Again, the first five shows rather sideways movements. The next five candles engulf the previous ones.
Using the Sushi Roll in trading
As I said before, the Sushi Roll allows traders to catch the reversal of the trend rather early. You may enter as well as exit the market with the Sushi Roll. Let’s discuss when is the best moment to do that.
Observe the chart carefully. Watch 10 consecutive candles in order to identify the Sushi Roll pattern. You can see it in the exemplary chart below. It shows the best moment to open a long position which is when a candle closes over the highest high in the pattern. In the more aggressive approach, you do not have to wait for the closing of the candle.
Now, look at the chart below. There is an uptrend in the market, so there are chances the bearish Sushi Roll pattern will develop. The first five candles do not show big movements, and the next five include in their range all the lows and highs of the first five. Go short when the price moves below the lowest low of the pattern, or wait for the candle to close beneath the aforementioned lowest low.
Conclusion
Candlestick patterns are commonly used by traders. There are many types of them. The Sushi Roll is a reversal pattern, which means you can expect the price to change its direction after the appearance of the pattern.
I cannot promise you will encounter the Sushi Roll often, but it is possible to identify it in any chart timeframe. There exist a bullish and a bearish Sushi Roll, and you can utilise them to close or open a trading position.
Remember, you do not have to rely on one method only. You can add some indicators to confirm the signals obtained.
Furthermore, there is a free demo account on the Binomo platform where you can practice recognising as well as trading with the Sushi Roll patterns. Open the demo account if you have not done this yet and check how you perform.
Wish you good luck!