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Finding a Good Binary Trade

We had to wait a little while to find this really nice setup. We brought in another 42 level. This time it was the 1.3442. This price point has held as both support and resistance for a long time. It appears we have found a pretty solid area to trade around when the price gets to this location. Over the past year we’ve watched price challenge an area with a 42 level at the end. This includes any number that has a 42 at the end on the euro dollar. For example, we had the 1.3442 come into play, but in the past we’ve seen 1.3042, 1.3142 and just recently 1.3742. This will be an area we will trade going forward and we look forward to taking these setups on a continuous basis across the board. If you find this level to the over used be sure to step away and let price get away for a while. Try not to trade it every time it touches this number.

Today’s trade was based on this level 1.3442. We watched how price was finally climbing up from the pivot level and around the 1.3400 number. Although the range was fairly tight for the date based on yesterday’s boring trading action, we were looking at this level to take our put option. Our trade was going against the trend, but we were confident in this number just above resistance two. We got in fairly early on the trade on a 15 minute expiry at Redwood options. Although price to move in our direction at the beginning. We did go through several minutes of pain before price action pushed down in our favor. In the end, we saw a nice four Pip winner and price dropped a few more pips after the trade was closed. Price has since consolidated around resistance two and climbed up to make new highs, only to come back to the number 1.3442.

In the image below you can see price action hanging around the 1.3400 level. We were just above the pivot level when the market started to gravitate to the North Side. Price eventually pushed through resistance two after a nice setup was made there and hit this number 1.3442. You can see how our down arrow points to our entry and notice how price action pushed down soon after that. As we write this post, price action did jump up almost reaching resistance three and is now consolidating at the 1.3442. Hopefully you’re catching on here and will trade this area in the future.
1.3442 Level Showing Good Times
Remember, although price action worked for us on this particular trade, it doesn’t necessarily mean it’ll work again. You have to let price dictate your entry and wait for a solid time to take it. If price is consolidating around this area for several hours, it’s not smart to trade it at this particular time. We recommend you let the price get away from it by over 30 pips before trading it again. The longer it gets away from this area the better the trade should be.

We did have some time off last week from our trading videos and blog posts. Be sure to get involved on all trades going forward and try to get set up with a new account at Redwood options. We’ve been trading there for several months now and feel comfortable with their trading platform. If you have any questions about trading binary options or any broker information please let us know in the comments below. We’ve created this site to help traders around the world. Should you have any strategical questions please leave a detailed e-mail or comment so we can understand what you are asking. The more information you provide us the better the answer we can provide. Remember to keep an eye on your levels, manage your risk, and have a great trading week.

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Comments

  1. I’ve been trading Forex for about 3 years. I’ve just found binary options and really like it as well. I see you are trading with Redwood Options. Do you like their platform? Keep up the great work.

    • Yes, they are very much like Traderush. If you have anymore questions about them, you can reach us by using the contact page. We have a link of the sidebar as well. Welcome to the community Vincent.

  2. Ashan Abeysekara says

    Please let me know the Pivot Point tool you used in MT4 and where I can download, please send me email to [email protected]

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