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Bottoms Up on the EURUSD

The first thing we noticed was that Price had moved down significantly past support level three. Anytime price is extended through the final support area, whether it’s support three or resistance three, we consider a change of direction near this level. Price action is the key to trading binaries when price has met extended Lows or highs. In this case, price was forming a channel near these extended Lows. As price came down to the lower level of the channel we were then thinking about taking a call option trade. In the video you can see our entry a lot clearer.

The significant part about this particular trade was that a candle wick was formed 30 minutes prior to our entry. Once this wick was created a second time we then made our entry for our call option to the north side. The trade ended up being a solid eight pip winner, however price has continued to move up and is now up nearly 35 pips from entry(10:50am EST). There is no telling what might happen to the price from this point on, but this just shows you that finding the Lows on an extended move to the South side could be a strong play for both binaries and for Spot Forex Trading.

This 24 option trade worked out really well and never showed a sign of red or any pain. These extended moves also occur not as frequently as we would like, but if you can find one of these once a week on a pair or two you can be pretty much set up your whole week of trading.

The image below shows what happened on the chart. This metatrader chart shows how price action moved to the South side and and formed the channel. Notice how the wick was formed and where entry was perfectly set up. Price then moved through support level three and continued to move higher ever since. Finding the Lows again is critical when you’re trading a reversal of the current trend. You don’t want to get in the way of a falling knife.

Trading Lows on the EURUSD

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