Guide to Trading the Railway Tracks Candles Pattern on IQ Option

If you notice you will find various types of candle patterns. There are two types of candles, the tweezers tops and tweezers bottom candles which are the most important type, especially for price action traders. If you love holding long positions, these candles are so handy to spot a trend reversal.

This guide will help you learn the railway track candle pattern and the use of it to trade on IQ Option.

Overview of the railway tracks candles pattern

There are three conditions that must be satisfied to develop this pattern.

The first condition is that the pattern should be created by a pair of candles. The second condition is that the candles must look like a railway track i.e; the length of the candles must be the same (look at the above candle)

The third condition is that both the candles must be different. For example, if the first candle is bullish, the second candle must be bearish.

The main thing which is very good about it is that it is very easy to spot. This is because they occur when the trend is exhausted and just about to reverse. If you are watching a trend, watch out for this pattern. It usually signalizes that trend is about to reverse.

How to trade using the railway tracks pattern on IQ Option

You will notice that the railway track pattern will appear at the peak of the uptrend.

When the peak of the uptrend occurs, a railway track pattern will appear which means a reversal will occur and the Immediately bearish candle will start forming, at this time get into a sell position.

This pattern forms at the bottom of a downtrend.

Examine the chart above, you will find that both the candles are not exactly the same size. But, if you see their lows, they are at the same level. This signifies that the trend is going to reverse and go bullish.

When does the railway tracks candles pattern work best?

Look at the chart above you will find that there is no new trend developed for a while. In this situation, it gets into a long position holding if you are trading options on IQ Option.

If it is clear trends on market, this pattern will work very well.

Now we have a good knowledge of the railway track’s candles pattern, it’s time to implement our knowledge. Just open the IQ Options practice account and use it.

Good luck.