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Finding Whole Number Setups

We took Tuesday’s trade before the US markets opened up. Something that stood out this morning before we started looking for our trade was the action based on a 15 minute chart. We noticed two significant 15 min. candles pointing to the south side that were just above the pivot level prior to the move. Price was hanging around the 1.3042 number before dropping nearly 100 pips to the south side. Price formed several wicks near support level three and eventually found a low. Price slightly stair stepped back up above support level three before consolidating once again. This is when we started looking for our trade using the 24 option platform.

As price was climbing back up from the support level it was hitting the whole number of 1.3000. Here you will find more information on support and resistance. At binaryoptiontrading.com, we like to trade whole numbers especially with the trend. The trend was down for the day and although we saw a good call option potential set up earlier, we knew the put option was the play of the day. During the 5 minutes we were in this trade, price was hanging around the price point of entry. Our strike price was almost on the whole number exactly. Price had moved up and moved down several times before closing at the last second in our favor. We were able to walk away with the winner, but we were willing to take a break even trade if that’s what happened. Price moved down a little bit further after our trade and has continued to climb back up to support level one a couple hours later.

In the image below you can see our price entry by looking at the green arrow pointing down. Price was coming up to the whole number of 1.3000 and if you look to the left, you can see two candle wicks. Those wicks were extra resistance to go along with the whole number. Price only moved against us by hair, and only moved down a little bit. This is what can happen before the US markets open. Fortunately for us, our price closed in our direction at that mark. Price then climbed above the 1.3000 level and moved back down several pips. Since the close of the trade and the early price action, price have climbed all the way back up to support level one. Although this is only 30 pips from our entry, it shows resilience the euro has at this level. Price did go into the 1.2900’s on the EURUSD and could see them later on today or tomorrow. We like to focus on what we see on the charts and take the best trades possible. No need to force the trade when price action doesn’t show a good one.
Trade what you see
Price action on the US market should get interesting over the next 24 hours. Apple is slated to give their earnings report and there are a lot of questions behind that. With the selloff of over $300 a share over the last several months, it will be interesting to see how the stock acts tomorrow. Will it fall to new 52 week lows or will the buyers move in and push it back up? With so much cash on hand it’s hard not own Apple stock at this price level. Although this won’t affect the currency markets it will allow traders who look at stocks some big opportunities tomorrow. Stay focus with your trading and take the best setups.
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