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Finding Trades in the Chop

We got off to a weird start this morning. We were watching a trade develop in choppy market conditions, when we finally took our put option just before the US markets opened. The interesting thing about this trade was that we entered on the wrong expiry. It turned out to be the expiry after the one we thought we were getting into. Of course in the end we got lucky and had a nice winner. Our prediction was correct, we just had to wait a bit longer. With so many things going on while recording, we must have fat fingered this option. Fortunately for us we got away with it today. We did enter this trade at GTOptions, which has been really good to us lately.

For the past two weeks we’ve been watching price action trade between the 1.3200 and 1.3300 level. This has probably been one the most boring summers we’ve seen in some time. The markets are waiting around for something big to happen before a direction is decided on. At this point people don’t know what’s happening to the currencies across the world. As binary options traders we need to focus on taking trades based on what we see. If there is a lot of chop going on in the markets, it’s sometimes best not to trade at all. In our case, we decided to take a trade based on the chop using the range that was going on for the past few hours. We were looking at the high side and decided to take a put option back down to the whole number 1.3300. Although price was above the whole number we still didn’t feel comfortable trading call options because we were near the highs of the morning. It’s just a matter of time before we see a breakout to one direction or another, but until we see that happen we will continue playing the range and taking the trades that we feel best suit our style.

In the image below you can see how price action was consolidating at the whole number of 1.3300. Notice on the 5 minute chart you can see the green arrow where we took our put option. Although our trade was set for a 9:30 expiry, it turned out to be a 9:40 expiry. Price action did move against us for about 8 min. Eventually price did move in our favor and with the extra 10 minutes, it allowed this trade to be a nice winner at GT. Price did move further down to the South side after the trade was complete, but has since reached new highs for the day and continues to break out above the resistance one level. This could be the momentum we seek for a new trading range, but until that happens for sure, we will only trade what we see on the binary markets.
Put Option on Metatrader
If we continue to see the choppy markets next week please try to limit your trading by at least 50%. If you are trading 10 trades a day it’s best to switch to five and if your trading three trades a day, maybe switch to one or two trades a day. This will allow you to avoid bad situations. Its just not worth it if you are taking trades and they aren’t working out. Try to avoid the bad situations and they’ll help your bankroll continue to rise versus getting depleted. We’ll be trading all this week and next week so make sure you get involved on the channel and on the website.
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