Binary Trading - Next Candle Prediction

How It Works:
Trend Filter:

Uses a 14-period EMA to determine the trend direction.

Buy signals only appear if the price is above the EMA (uptrend).

Sell signals only appear if the price is below the EMA (downtrend).

Momentum Confirmation:

RSI (14-period) ensures the market is not overextended:

Avoid buys if RSI is overbought (>70).

Avoid sells if RSI is oversold (<30).

RSI must be rising for buys or falling for sells over the last confirmCandles (default: 2).

Price Action:

Requires 2 consecutive bullish candles for buys or 2 consecutive bearish candles for sells.

Optimization Tips:
Timeframe: Works best on 1-minute to 5-minute charts (common for binary trading).

Adjust Parameters:

Reduce emaLength (e.g., 10) for faster signals.

Increase confirmCandles (e.g., 3) to reduce false signals.

Combine with News: Avoid trading during high-impact news events.

Usage Instructions:
Apply to Chart: Copy the script into TradingView’s Pine Editor.

Backtest: Check historical performance on your preferred asset (e.g., EUR/USD, BTCUSD).

Set Alerts: Use the built-in alerts to notify you of signals.

Why This Works Better:
Reduces False Signals: By combining trend, momentum, and price action.

Avoids Overfitting: Uses widely accepted indicators (RSI, EMA) instead of exotic strategies.

Adaptable: Parameters can be tweaked for volatility or asset type.

Important Notes:
No Guarantee: No strategy is 100% accurate. Always use risk management (e.g., stop-loss).

Market Context: Works best in trending markets. Avoid sideways/ranging conditions.