CANDLESTICK TRADING CONTINUED

4. Hammer and Hanging Man:

Hammer is kind of candlestick that can be seen at the bottom of a downtrend. Hammer has no or a very small upper shadow. The hammer candlestick which is seen at the top of an uptrend is called Hanging Man.

Hammer and Hanging Man have three identifying features:

1. The body is in the upper third of the price range.
2. The lower shadow is twice of the length of the body.
3. They have no or a very short upper shadow.

Like Doji, Hammer and Hanging man signal indecision and uncertainty and need confirmation.

5. Shooting Star:

It is an inverted hammer at the top of the uptrend. Its color can be Bullish or Bearish. A Shooting Star at the bottom of a downtrend, is called Inverted Hammer. Like Doji and Hammer, Shooting Star and inverted Hammer need confirmation.

A gap between the Shooting Start or Inverted Hammer and the next candlestick is one of the confirmations. A big Bearish candlestick after the Shooting Start is another confirmation. Generally, confirmation is something that confirms that the price has changed the direction.

Combination of CandleSticks:

Candlesticks are important signals individually. However combination of candlesticks can also generate very strong reversal signals.

1. High Wave

A group of candlesticks that have small bodies and long shadows are called High Wave. High Wave is a very strong reversal signal at the top of an uptrend or bottom of a downtrend.

2. Engulfing Pattern

This pattern is a very strong reversal signal at the end of a trends. Engulfing pattern is formed by two candlesticks with different colors. The body of the second candlestick should completely engulf the first one. The shadows may also be engulfed but it is not necessary. The first candlestick can also be a Doji.

Engulfing pattern is stronger when the first candlestick has a small and the second candlestick has a big body. Also when the second candlestick engulfs more than one candlestick, the pattern is stronger.

3. Dark Cloud Cover

It is a Bearish reversal signal that can be formed at the top of an uptrend by two candlesticks. The first one is Bullish and the second one is Bearish. Dark Cloud Cover is formed when the second candlestick is started above the high price of the first candlestick but goes down and becomes finished above the open price of the first candlestick.

Dark Cloud Cover can be considered as a stronger reversal signal when:

1. The closing price of the bearish candlestick is close to the opening price of the previous candlestick.
2. Both candlesticks are shaven (they have no shadow) and the bearish candlestick is opened at the close of the bullish candlestick and is closed at the open of the bullish candlestick.
3. When the bearish candlestick is opened above a strong resistance and then goes down.

3. Piercing Line

A Dark Cloud Cover that happens at the bottom of a downtrend is know is as Piercing Line.

   

When you see a Dark Cloud Cover at the top of an uptrend or a Piercing Line at the bottom of a downtrend you have to wait for the next candlestick.

If the next candlesticks after a Dark Cloud Cover is a Bullish candlestick that keeps on going up and goes higher than the high price of the second candlestick, then you should consider the Dark Cloud Cover as a continuation signal.

But if the next candlesticks after a Dark Cloud Cover is a Bearish candlestick that goes down and preferably lower than the close price of the second candlestick, then the Dark Cloud Cover you have is a reversal signal.

The same thing is correct about the Piercing Line:

If the next candlesticks after a Piercing Line is a Bearish candlestick that goes down and goes lower than the close price of the second candlestick, then the Piercing Line you have is a continuation signal.

But if the next candlesticks after a Piercing Line is a Bullish candlestick that keeps on going up and preferably goes higher than the high price of the second candlestick in the Piercing Line, then the Piercing Line you have is a reversal signal.

4. Harami

Harami means pregnant in Japanese. Harami pattern is formed by two candlesticks. One big (the mother) and one small (the baby). The bigger one covers the whole or at least the real body of the smaller one. Harami can be seen both at the top of an uptrend or at the bottom of a downtrend. The small candle can be formed any where along the length of the big candle but the important thing is that it should be covered by the big candlestick.

The more difference between the size of two candlesticks, the more effective and potent the signal is.

Like the Dark Cloud Cover, Piercing Line and Harami can work as reversal signals but they have to be confirmed by the next candlesticks. These patterns can not be known as reliable and strong reversal signals.

If you already have a position and you have some profit in your hands, when you see any of the above patterns, you have to close your trade or at least tighten your stop loss and wait for the market to go ahead.

If it changes the direction, you will be safe because you already collected your profit or your stop loss will protect your profit and if it keeps on moving to the same direction, you will make more profit.

When the small candlestick in Harami pattern is a Doji, the pattern is called Harami Cross. A long body candlestick followed by a Doji which is covered by the long candlestick should not be ignored at all:

5. Morning and Evening Star and Abandoned Baby:

Morning star becomes formed by three candlesticks. This pattern can be seen at the bottom of a downtrend. It is known as a strong reversal signal.

1. The first candlestick should be a Bearish candlestick with a considerable body.
2. The second candlestick is a small candlestick that is formed lower than the first one. This candlestick can be Bearish or Bullish. In fact Morning star is the second candlestick but we have to have the first and the second candlesticks for a Morning Star signal.
3. The third candlestick is a Bullish candlestick that is formed higher than the second one and its body covers a significant portion of the first candlestick.

This pattern is called Evening Star when formed at the top of an uptrend:

The effectiveness and potency of the Morning Star and Evening Star patterns as reversal signals is dependent on some special factors that have to be considered:

1. The distance (gap) between the morning or evening star with the first and third candlesticks. The bigger gap, the stronger signal.
2. The degree of the coverage of the first candlestick by the third one. The bigger coverage, the stronger signal.
3. The bigger trading volume in the third candlestick than the first one.

Sometimes the Morning or Evening Star is a Doji candlestick. Again in this case, the most important thing is the gap between the first and third candlestick and the Doji.

Sometimes, the Morning or Evening Star is a very small candlestick with small or no shadows. The gap is so big and even none of the candlesticks shadows cover any part of the Morning or Evening Star. This pattern is called Abandoned Baby which is a very strong reversal signal. Because of the high volatility, this pattern is very rare in the forex market and can only be seen in bigger time frames but it can be seen in the stock market in smaller time frames like one hour.

Abandoned baby can be seen both at the top of an uptrend or bottom of a downtrend.

6. Tweezers

Tweezers is made up of two candlesticks that are next or so close to each other. They have identical highs at the top of the market or identical lows at the bottom of the market. The Tweezers usually becomes formed by the candlesticks shadows but it can also be made by the bodies of the shaven candlesticks. The two candlesticks that form Tweezers can have small bodies like Doji and Hammer candlesticks.

Tweezers can not be considered as a strong reversal signals and it needs confirmation but you have to be careful when you see a Tweezers signal. You know what I mean by “be careful”.

Tweezers that are formed right under resistance lines or above the support lines and also under or above the Fibonacci levels that act as resistance or support are important especially when they are made up of two Doji candlesticks. The longer the shadows, the more potent the Tweezers signal.

It is also possible that you see a few or even several candlesticks between the two candlesticks that form the Tweezers pattern. Even in this case you should not ignore the Tweezers as a potential reversal signal.

When there are several candlesticks between the two that make the Tweezers pattern, they may form Double Tops or Double Bottoms patterns that show the levels of resistance or support.

OK!

You learned about the different kinds of Japanese candlesticks and the patterns they make. What next?

I think it is so easy to learn the different kinds of candlesticks and the patterns they make. You can learn all of them in a few hours but something that you have to focus on it more than learning the names and their meanings is the psychological story that each candlestick tells.

At the introduction of this article, I told you that candlesticks are the psychological indicators of the market. They reflect the feeling of the buyers and seller. They tell you if traders are eager to buy or they have stopped buying and are waiting or they have started selling like crazy.

This is the language of the candlesticks that you have to learn.

For example lets see how a Doji candlestick becomes formed. As I already mentioned, Doji candlestick shows that the market is in indecision. It means the price doesn’t know to go up or down. Sometimes Buyers becomes stronger (buy more) and the price goes up and sometimes seller becomes stronger (sell more) and the price goes down.

Finally, the candlestick is finished when the price is exactly the same as the open price and a Doji candlestick becomes formed. So none of the buyers and sellers could take the control of the market. That’s why they say Doji means indecision and you have to wait for the confirmation because it is not clear if the price will go up or down.

If the next candlestick becomes completed as a relatively big Bearish (red) candlestick, it means Bears (sellers) succeeded to take the control and lower the price and if the next candlestick become completed as a relatively big Bullish (green) candlestick, it means Bulls succeeded to take the control and increased the price.

So what does it mean if the next candlestick becomes formed as another Doji?

Yes, it means the market is still in the indecision status and none of the Bulls and Bears have been able to win yet.

So you have to learn to hear and understand the story that each candlestick tells you:

1. When you see a candlestick, first you should find the open, high, low and close prices.
2. Check the previous candlesticks and find out if the market has been Bullish (uptrend) or Bearish (downtrend).
3. Try to understand from the shape of the candlestick that if the buyers (Bulls) are stronger or sellers (Bears) or none of them (indecision).
4. Then try to guess the color of the next candlestick using the above information.
5. If there is any candlestick pattern, like High Wave, Harami and … try to interpret them and predict the direction of the market.

Do Not decide about a forming candlestick. You have to wait for the candlestick to be formed completely. The shape and color of the candlesticks become changed several times during their formation and so they should be analyzed only when they are fully formed.

My bottom line advice for you is that if you can not make any prediction and the market situation looks un-known and unpredictable to you, DO NOT force yourself to make a prediction and take any position. You will be wrong in most cases and you will lose money. It doesn’t matter how long; just wait until you see a clear signal that makes sense to you.

Candlestick Trading

Candlesticks are one of the most important tools we have in the forex and stock market technical analysis. The information that the candlesticks give us are the best and most accurate. If you like to become a good trader and you like to have successful and profitable trades, it is highly recommended to learn to read the candlesticks’ signals. What are the Japanese Candlesticks? Candlesticks are the oldest form of technical analysis in the world. Japanese Candlesticks were invented by a Japanese rice trader, Sakata, in 17th century. He spent about ten years of his life in researching and analyzing of the effect of weather, psychology of buyers and sellers and many different conditions on the rice price. Then he made 100 successful trades and retired a rich man and wrote two books about technical analysis. I highlighted the “psychology of buyers and sellers” because candlesticks are the indicators of the market psychology. This is the first and most important thing you have to know about the candlesticks. Price volatility is the result of nothing but the behavior of the buyers (Bulls) and sellers (Bears). When there is more buying than selling, the price goes up and visa versa. Candlesticks are the indicators that reflect the feelings (fear and greed) of the buyers and sellers. Candlesticks has their own language which is very easy to learn. If you learn their language, you will see that they really talk to you and tell you what will happen in the future. Candlesticks are the only real time indicators that we have and when you combine them with other useful indicators like Bollinger Bands, they will become the best trading tools. All other indicators like Stochastic, MACD and RSI are delayed and produce a lot of false signals. Ignoring the candlesticks and trading based on these indicators is like driving with closed eyes and just by listening to the directions that someone else gives you. It is clear that he can not give you the directions “on time”. Your reflections will not be on time too and you will be delayed which can be too dangerous. Candlesticks, candlestick trading and the related technical analysis were introduced to the western countries in 1985 and became so popular. Candlestick is basically a rectangle that gives 4 different information in a special time frame. If you use the daily time frame, for each day we will have one candlestick and if you use a 5 minutes time frame, for each 5 minutes you will have a candlestick and so on. Each candlestick includes 4 numbers: 1. Open price 2. Close price 3. High price 4. Low price For example, in the one hour time frame, the open price is the price of the currency pair at the time that the candlestick is started. In the one hour time frame, it takes one hour for each candlestick to be formed completely. So let’s say when a candlestick is just started in the one hour chart, the price is 1.9825. This is the open price. The prices goes up and down during one hour and finally, when one hour is over, the price is 2.0080. This is the close price. When the close price is higher than the open price, the candle is Bullish. It means the price has gone up during the formation of the candlestick. If the open price is higher than the close price, the formed candlestick is a Bearish candlestick. It means the price has gone down during the formation of the candlestick. High price is the maximum price and low price is the minimum price during the formation of the candlesticks. The shape and color of a candlestick may change several times during its formation and you have to wait for the candlestick to be formed completely and then read the candlestick signal and make your analysis and decision. Candlesticks have two main parts: 1. Body and 2. Shadows Psychology of the market: Candlestick trading means knowing the psychology of the market using the candlesticks shapes and colors. Candlesticks are the indicators of the market psychology. They show us if there is more buying than selling or there is more fear than greed in the market and visa versa. Using this information, you will be able to predict the direction of the price. You will learn about it here. Different shapes of the candlesticks: Because of the price changes, candlesticks can have several different shapes. For example the open price and close price can be the same. Or the high price can be the same as the close price. Lets see how many different shapes the candlesticks can have: 1. Typical candlesticks: All of the four prices are different from each other. A typical candlestick can be Bullish or Bearish. Typical Candlesticks 2. Marubozu: Marubozu means shaven. The candlesticks that have no shadow are called Marubozu. What does Marubozu mean in the market? In Bullish Marubozu, the open price is the same as the low price and the close price is the same as the high price. Bullish Marubozu means that Bulls are so strong and didn’t let the Bears take the price down when the candlestick became completed. It means there is a lot of buying activity in the market. The longer the candlestick, the stronger the Bulls. In Bearish Marubozu, the open price is the same as the high price and the close price is the same as the low price. A Bearish Marubozu means that Bears are strong and there is a lot of sell activity in the market specially when the Bearish Marubozu is longer than the previous candlesticks. What does it mean in general? 1. When you see a Bullish Marubozu, you should not take a short position because the Bulls are strong and the price can go higher. 2. When you see a Bearish Marubozu, you should not take a long position. 3. When you see a Bullish Marubozu at end of a downtrend, it is a reversal signal. You can just wait for the next candlestick and if it is Bullish too, you can take a long position. 4. When you see a Bearish Marubozu at end of an uptrend, it is a reversal signal. You can just wait for the next candlestick and if it is Bearish too, you can take a short position. 5. If you already have a long position and you see a Bearish Marubozu at the end of the uptrend, you should close your position and take your profit. 6. If you already have a short position and you see a Bullish Marubozu at the end of the downtrend, you should close your position and take your profit. Of course we will talk about the candlesticks patterns and you will learn more about taking the right decision when you see different kinds of candlesticks but by now, just keep in mind that Bullish/Bearish Marubozu means the Bulls/Bears are strong. 3. Doji: Doji means unskillfully. These kinds of candlesticks are called Doji or unskillfully because they don’t have a body. Why? When the open price and close price are the same we will have a Doji. So Doji candlesticks have no color and so they are neither Bullish nor Bearish. What does it mean? It means Both Bulls and Bears have the same power and are matched and the price doesn’t know where to go. It doesn’t know if it goes up or down because Bulls are not able to increase the price and Bears are not able to decrease it. So Doji candlesticks are indecision and uncertainty signals. All kinds of Doji candlesticks need confirmation. I will tell you what the confirmation means. There are different types of Doji candlesticks. The most important one is called Rickshaw man. In Rickshaw man the cross bar is roughly central. Rickshaw man is a strong indecision signal. So when you see it at the top of an uptrend, it means the price can go higher, or go down or becomes range. Another kind of Doji is called Gravestone: This kind of Doji also means indecision and when it is seen at the top of an uptrend it means the prices wants to bounce down. At the bottom of the market sometimes you see the Inverted Gravestone: Inverted Gravestone is also known as Dragonfly. Of course it doesn’t mean that inverted gravestone or gravestone can not be seen at the top or bottom of the market. In both cases they signal indecision. Doji can be seen in some other different shapes too: Sometimes Doji has a small body: What should you do when you see a Doji? As I said, Doji means indecision and uncertainty. When it is seen at the top of an uptrend or at the bottom of a downtrend, it means the price is uncertain to go up or down or sideways. When you see a Doji, if you already have a position, you have to take your profit and if you don’t have any position, you have to wait for the confirmation to choose a direction and enter to a trade. What do I mean by confirmation? The next candle sticks can work as a confirmation. For example when you see a Gravestone at the top of an uptrend, you should get ready to go short but first you have to wait for the next candlestick or even next two candlesticks. If they are Bearish, it means the price has changed the direction and you can go short. Please note that Doji candlesticks that have longer shadows, are stronger. As you see the Doji is confirmed by the next candlestick and the price went down. TO BE CONTINUED IN THE NEXT POST

WIN BIG ON BINARY.COM

Hy guys, I will like to introduce to you another means of increasing your BINARY.COM and binary options account with minimum lost. Before I proceed, what I'm about revealing might not be used by every one, but I've been using it and its working well for me. I'd made more profits than loss. The truth of the matter is that, you cannot win all the time, that's the fact, that's the reason why money management is important. Without much ado, see the captured screen of what I'm about to reveal. I will always advise to demo trade to test a system b4 usage. As you can see from the screen above, the images are of the trades I took with the system I'm about showing you. I didn't show you to show off but to tell you that you don't need to pay that very hard to get what you want. Online money making is real, I've known this and I've said to my self that, "No Going Back". Step 1 OPen an account with either BINARY.COM here or with good broker like binary.You might as well click on this banner. Step 2 go to http://www.investing.com/, scroll down to where you will see this image As you can see on this page we're having Popular, Forex, Indices, Commodities, Stocks and bonds. All that you need to do is to click on any part of it that suits your trading of the day. I mostly trade on forex and commodities so I will click forex now as seen on the screen below. Please do take note of the area I put in rectangle, its the time frame, click on each time frame and make sure they are saying the same thing, dont trade on that currency pair if the 5mins summary is different from its 10min and hours and daily summary. what I mean is that, if the 5mins summary is saying Strong sell and the 15mins is saying Strong Buy, please leave the currency and go to another one. Take a look at this. The above images shows that EUR/USD on this day was having different summary on each time frame, I will not advise you to trade this currency because you might loose it. I place mostly daily trades, between 6am to 23:30pm or the last time of the market. The above shown that hourly and daily were strong sell, I might still risk it because I'm trading end of the day trade. But I still dont buy the ideas. Step 3 After you've seen this, all that you have to do is to login to your BINARY.COM accounts or your bbinary accounts to place your trade. Strong sell means you should place down or sell/put the currency pair while strong buy means you should go up or buy the currency pair. What I love under BINARY.COM is that you can choose your own time frame from Now to 7 or 8 hours I rarely loose the trade, but under bbinary you must stick to the time given so atimes I may loose due to market volatility moving against you. Most of my trades on BINARY.COM end at 4pm GMT or at worst 4:30pm GMT. Haven done all these correctly, seat down and expect good results most often Trade with care, demo trade b4 going life. See you at the top.

MARTINGALE STRATEGY APPLIED TO BINARY.COM

A martingale is any of a class of betting strategies that originated from and were popular in 18th century France. The simplest of these strategies was designed for a game in which the gambler wins his stake if a coin comes up heads and loses it if the coin comes up tails. The strategy had the gambler double his bet after every loss, so that the first win would recover all previous losses plus win a profit equal to the original stake. The martingale strategy has been applied to roulette as well, as the probability of hitting either red or black is close to 50%. Since a gambler with infinite wealth will, almost surely, eventually flip heads, the martingale betting strategy was seen as a sure thing by those who advocated it. Of course, none of the gamblers in fact possessed infinite wealth, and the exponential growth of the bets would eventually bankrupt "unlucky" gamblers who chose to use the martingale. It is therefore a good example of a Taleb distribution – the gambler usually wins a small net reward, thus appearing to have a sound strategy. However, the gambler's expected value does indeed remain zero (or less than zero) because the small probability that he will suffer a catastrophic loss exactly balances with his expected gain. (In a casino, the expected value is negative, due to the house's edge.) The likelihood of catastrophic loss may not even be very small. The bet size rises exponentially. This, combined with the fact that strings of consecutive losses actually occur more often than common intuition suggests, can bankrupt a gambler quickly. Casino betting limits eliminate use of the martingale strategy. Mathematical analysis One round of the idealized martingale without time or credit constraints can be formulated mathematically as follows. Let the coin tosses be represented by a sequence X0, X1, … of independent random variables, each of which is equal to H with probability p, and T with probability q = 1 – p. Let N be time of appearance of the first H; in other words, X0, X1, …, XN–1 = T, and XN = H. If the coin never shows H, we write N = ∞. N is itself a random variable because it depends on the random outcomes of the coin tosses. In the first N – 1 coin tosses, the player following the martingale strategy loses 1, 2, …, 2N–1 units, accumulating a total loss of 2N − 1. On the Nth toss, there is a win of 2N units, resulting in a net gain of 1 unit over the first N tosses. For example, suppose the first four coin tosses are T, T, T, H making N = 3. The bettor loses 1, 2, and 4 units on the first three tosses, for a total loss of 7 units, then wins 8 units on the fourth toss, for a net gain of 1 unit. As long as the coin eventually shows heads, the betting player realizes a gain. What is the probability that N = ∞, i.e., that the coin never shows heads? Clearly it can be no greater than the probability that the first k tosses are all T; this probability is qk. Unless q = 1, the only nonnegative number less than or equal to qk for all values of k is zero. It follows that N is finite with probability 1; therefore with probability 1, the coin will eventually show heads and the bettor will realize a net gain of 1 unit. This property of the idealized version of the martingale accounts for the attraction of the idea. In practice, the idealized version can only be approximated, for two reasons. Unlimited credit to finance possibly astronomical losses during long runs of tails is not available, and there is a limit to the number of coin tosses that can be performed in any finite period of time, precluding the possibility of playing long enough to observe very long runs of tails. As an example, consider a bettor with an available fortune, or credit, of 2^{43} (approximately 9 trillion) units, roughly half the size of the current US national debt in dollars. With this very large fortune, the player can afford to lose on the first 42 tosses, but a loss on the 43rd cannot be covered. The probability of losing on the first 42 tosses is q^{42}, which will be a very small number unless tails are nearly certain on each toss. In the fair case where q=1/2, we could expect to wait something on the order of 2^{42} tosses before seeing 42 consecutive tails; tossing coins at the rate of one toss per second, this would require approximately 279,000 years. This version of the game is likely to be unattractive to both players. The player with the fortune can expect to see a head and gain one unit on average every two tosses, or two seconds, corresponding to an annual income of about 31.6 million units until disaster (42 tails) occurs. This is only a 0.0036 percent return on the fortune at risk. The other player can look forward to steady losses of 31.6 million units per year until hitting an incredibly large jackpot, probably in something like 279,000 years, a period far longer than any currency has yet existed. If q > 1/2, this version of the game is also unfavorable to the first player in the sense that it would have negative expected winnings. The impossibility of winning over the long run, given a limit of the size of bets or a limit in the size of one's bankroll or line of credit, is proven by the optional stopping theorem. NOW TO APPLY IT TO BINARY.COM YOU NEED THE FOLLOWING 1. A VERY NICE CAPITAL 2. PATIENCE 3. LOSE YOUR GREED STEPS 1. FIND THE 10TH RUTH OF UR CAPITAL AND USE IT AS THE 1ST STAKE 2. DOUBLE UR STAKE WHEN YOU LOSE PLUS LITTLE PROFIT 3. PLACE YOUR BET AND RELAX NB: PRACTICE WITH A VIRTUAL ACCOUNT FIRST

Types of trades on Binary.com

Types of trades

Whatever your market view or strategy, Binary.com provides you with the right trade to profit from your prediction. Choose from five ways to trade:

• Rise/fall trades
• Higher/lower trades
• Touch/no touch trades
• In/out trades
• Tick trades

Rise / Fall

Choose Rise/Fall when you want to profit from the market rising or falling from its current level.

1. Choose the market, the time period, and how much you wish to win.
2. Price the trade.
3. Win 80-100% on your stake if you are correct.

 

Higher / Lower

Choose Higher/Lower when you want to profit from the market ending higher or lower than a price target.

1. Choose the market, the price target, the time period, and how much you wish to win.
2. Price the trade.
3. Win 10-1000% on your stake if you are correct. Increase your winning return by choosing a price target farther away from the current price.

Touch / No Touch

Choose Touch / No Touch when you want to profit from the market touching or not touching a target any time during the contract period.

1. Choose the market, the price target, the time period, and how much you wish to win.
2. Price the trade.
3. Win 10-1000% on your stake if you are correct. Increase your winning return by choosing a "Touch" trade, with a price target farther away from the current price.

In / Out

Choose Stays In/Out to profit from the market staying inside or going outside two price targets any time during the contract period.

Choose Ends In/Out to profit from the market stopping inside or outside two price targets at the end of the time period.

1. Choose the market, the price targets, the time period, and how much you wish to win.
2. Price the trade.
3. Win 10-1000% on your stake if you are correct. Increase your winning return by choosing "Stays In" with a narrow price target.

Tick Trades

Choose Tick Trades when you want to profit from very short-term market movements over the next 5 ticks.

There are 3 types of tick trades:

1. "Tick Trades Up/Down" - you win when you correctly predict if the market will rise or fall over the next 5 ticks.
2. "Lucky 10 Digits" - you win when you correctly predict the last decimal digit of the 5th tick.
3. "Quick 10%" - you win when you correctly predict what the last decimal digit of the 5th tick will not be.