Start Trading Binaries with the FREE Binary Options Robot - CLICK HERE

Finding Good Trades after News

A news event got us rolling this morning on the markets. We were looking for 1.3742 all morning as we watched an 8:30 news report come out, pushing the markets up strongly on a five minute candle. It was the reversal move that gave us the entry a bit later. Price action is starting to consolidate and get a bit tighter as we hit the holiday week. This could lead to some false moves in both directions. Be sure to seek the trades you have more than above average confidence in. We’ve mentioned in another article, that during times of holidays and a lack of action, could lead to good trade setups not working. This means you have to be very particular on what you select. Don’t ignore good setups, but only take the best looking ones when possible.

We knew after the news event to wait a few candles while the markets digested the information. Fortunately for us, we waited longer than a few candles. Price moved up immediately after the release of the news. The next ten 5 minute candles slowly dropped off filling the initial news move. We’ve talked about this price action in the past as well. If price pushes back after the initial move, you should seek a reversal of the same move in the opposite direction, if not more. Price pushed through the 1.3742 and extended all the way down to support level one. This is where we entered our call option. We watched it rise slowly at first, but by the time the trade was over, we had a three pip winner. Post news events can bring some shaky moves to the markets, so you need to be on your toes after the release.

In the chart below you can see our entry by looking at the green arrow pointing to the north side. This trade was at the lows of the day. Two things could have happened at this point at support level one. We could have seen even more lows with a breakout move or a reversal. We felt pretty confident at the time that price action would turn back up. By the time the trade closed out, the reversal was in full effect. Price did eventually make deeper lows after the trade was over, but never got down to support level two. Several wicks were formed and price has now passed the 1.3742 level heading back to pivot. A decent short term trade as well for our Forex traders. You always want to put the odds in your favor and today using the trend helped.
EURUSD hanging hard

Although the markets are fighting to make new weekly highs, we will continue to trade what we see. These markets never go straight up. You may take some losing trades going with the trend, but it’s best to stick with it over the long run. Once we see a market reversal, play your trades in the opposite direction. We like trading the EURUSD on a daily basis and as long as the momentum is pointing up we will seek more calls than puts. This doesn’t mean calls will come into play. Remember, the price action has more strength leaning up, so which side of the rope would you want to be on in a Tug of War.

We are in the process of expanding our website and gaining access to other binary traders. If you have any suggestions about making this site better please let us know. We’ll continue to grow the site and trade with you in mind.
Risk Disclaimer

Comments

  1. Talk about news events. The news event yesterday was pretty wild. I wasn’t able to trade it, but thanks for updating us on the trades and news. I check your site all the time for all kinds of information.

    • Yes, news events can be really tricky to trade and unless you are able to handle the risk it is probably best to stay away. There are a lot of other trades available in a day. We all like big moves, but when it’s against you anything can happen.

Speak Your Mind

*