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Double Trade with a Nice Resistance

Trading Pivot Points Keeping an open mind when trading the binary markets is critical to your success as a trader. Whether you’re looking for short-term or long-term trades its best to trade when price action is in your favor and the expectations are high in the direction you want to go.

Today’s trade was on the EURUSD was based on an area of resistance using the pivot lines. This resistance one line has always been a favorite amongst the pivot lines. Anytime price moves into this resistance point and assuming price action is not so strong, we will take put options at this level. The power of this trade this time was the fact that it was at a whole number of 1.24000. This is a significant piece to a solid put option trade. Whole numbers are powerful when it comes to support and resistance.

Any time you can add catalysts to your trades you are better off. Knowing that a trade has more than just one reason for entry gives you a more confident feeling. In this case, we had saw price move from the lower end of a channel back up into a resistance area. Taking into account of a resistance area and a whole number was two times the love. Our put option was a nice winner by the time the trade was done.

The image below shows an area of the chart that was a great area for a call option on the EURUSD. This trade occurred around 9:30 AM on August 6, 2012. Price had moved down into the bottom of the channel and formed a nice solid 1 minute wick on the candlestick chart. We are using metatrader for trading charts and we recommend the use them as well. You can see price moves up and never looked back.
This Setup was Perfect
Since these trees were taken, price has moved through resistance one, but it did take several attempts for it to finally get through. This is something else you need to consider as a trader. Price may try to get through a certain area several times before actually completing the task. It’s not always best to trade the same spot over and over again, but when you have a solid area like a whole number and resistance point combined, it gives you significant support for your trade.

The USDJPY trade was a setup I liked and decided to take prior to the Trade of the day. This had a much longer expiry, so it took a bit longer to develop. It worked out well which is always a good thing.

Risk Disclaimer

Comments

  1. 11 August, 2012.

    Hi Rich,

    First of all, THANK YOU for showing us on Youtube as to how you trade Binary Options. Your synopsis (on your website) is really good as well.

    I must say that you are an excellent Trader. I’ve learnt so much from you in a space of just two days of watching some of your videos as well as reading the synopsis of your trades. I only stumbled on them just yesterday.

    I am new to Binary Options and trading in general. I’ve been training for a while and feel that others and I, (both new and experienced) could do with your guidance by way of a short book on Binary Options trading, focusing on the Pivot strategy that you use.

    If possible, it should be in PDF. You could even publish and sell it through Amazon Kindle, if you wanted to.

    I’m sure a lot of the people out there that watch your videos on Youtube and elsewhere would be most happy to buy it off you, if the price is right,and as long as you tell them on Youtube (and your website) that you’ve got a Binary Options book out that’s based on the Pivot strategy that you use to trade Binary Options.

    Perhaps you could manage to write it over a week-end, focusing on the Pivot Strategy in particular, in conjunction with multi time-frame analysis in looking for long-term support and resistance, long wicks, over-extension on the R3 and S3, trading the R1 and S1, what to look for, which time-frame to take a trade when a signal occurs, and so on. I’m sure it would sell like hot cakes. It really would and I’ll be the first one to buy it.

    I’d be most grateful if you could please consider this request. Thanks.

    Regards,

    Idris.

    • Idris,

      Thanks for the kind words. I really appreciate you coming forward and telling me what might help you and others.

      I will consider writing a book or something in the coming months. I’m not sure at this point how I will do this.

      I will definitely consider it.

      Thanks,

      Rich

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