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Breaking Out on the Binary Trading Charts

A great trade setup for us today on the EURUSD. Throughout the video we spoke about the risk of trading. Understanding your risk is probably the most important detail you figure out before taking a trade. If you don’t accept the risk of trading; not only will your account blowup, but you won’t even know what hit you when it’s all over. Take a step back before taking your first trade and get a fuel for the risk.

Today’s trade was based on price action pushing through resistance three. We had a news event that occurred at 8:30 this morning that caused the market to push up 50 pips in about 15 minutes. As price was rising up we started looking for call option areas on pullbacks. We did notice a nice pullback and wick on the 5 minute chart to a news support area. However, this wasn’t a holding ground considering the news had just come out. It wasn’t until it repeated itself 20 minutes later. We took our trade at 24option on a call option on the secondary pullback to a support level that was set up by the news event and recent price action. Price moved up in our favor immediately, it then pulled back against us for about one minute and continued to breakout to new territory near the end of the trade. This was a monster trade working in our favor giving us a nice 10 pip winner and it’s continuing its rise to the 1.3200 level. (Update – Price has now moved up to the 1.32600 level only 3 hours after our trade)

In the chart below you can see the price action that occurred prior to the entry of our trade. Notice how price bounced off the 1.3100 whole number purple line. This was a news event that occurred at 8:30. Price moved up a quick 60 pips before pulling back down. Within this range of the pullback is what we started looking for a call option. We were thinking trend all the way. You can see the green arrow pointing to the North Side. Price had pulled back through resistance three and we took our entry. Price immediately climbed up and is continuing to make new highs as we write this blog post. Price should see the 1.3200-1.33000 level. We did have a couple things working for this trade and is the type of trade you hope to find on a daily basis.
Using a Pullback area for a Breakout
We have another news event tomorrow. The nonfarm payroll for June comes out at 8:30 in the morning. We’ve seen two big moves based on this information this week already. It will be interesting to see how much it moves for this news event that’s already been digested. It’s not like the news hasn’t come out yet. We’ve already had a heads up, so we might see small action at news time. If the numbers have a strong deviation we could see significant moves of over 100 pips and possibly breakout to monthly highs. Should price push back down, we could be stuck back in the range we’ve been in for the last four months. As binary options traders we will take the best trade setups possible and avoid the first 30 minutes after the news event. This will limit your risk and allow you to take the best trade set up on Friday. Watch for false breakouts in both directions and keep an eye out for extra catalysts when entering your trade. We’ll see what happens after news and we’ll continue our training videos tomorrow.

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