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GBPUSD Call Option Around Pivot

Today’s 24option trade set up was found in a consolidation range which allowed us to get in on the bottom of the cycle. The price had moved up, gravitating towards the pivot line, but then decided to consolidate creating a tight range. Once we saw the price come back to the lower side of that particular range we took a call option. This call option then moved in our favor on the next candle by a significant amount and by the time the trade was over we had a nice four pip winner. This was a pain free trade that allowed us to take a call option and we knew we could have the price gravitate towards the pivot line which was only about 10 pips away.

Any time you trade below the pivot line you want the price to show some signs of north side movement. In this case, we noticed several higher lows instead of lower lows. What this means is that, the price was trying to move up but only coming back to areas above the most recent low. This led us to believe the price was definitely moving up and will at least hit the pivot line. Any time you see confidence and order flow to the north side you want to be on the defensive side if you are looking for a put option around any support line. The pivot line had become an area where it might not be such a great way to trade a put option on the pound dollar.

The image below shows what happened after our trade in the video. We had mentioned the price had started moving up to the pivot line and to only take a trade or put option at this level if things are in your favor. This was not a solid entry for a put option based on the price action we had seen earlier in the day. As you can see the price moved through the pivot eventually consolidated just above it, and then moved up more to the north side.

We knew this binary options trade set up would be dangerous if we took a put option and in the and we decided not to take it. The price eventually moved above the pivot by more than 10 pips. Another trade setup occurred soon after the price decided to move back down to the pivot line. The chart does not show the action, but we had about eight candles to the downside that moved right back to the pivot line. Had you entered a call option around the 10:04 candle, you could’ve followed the trend and momentum to the upside. The price ended up closing about five pips above the pivot line or in this case a call option on a 15 min. expiry. So within about an hour you had two nice trade setups available for you on the GBPUSD by itself.

Pivot Level Breakout

These are the types of trades you want to seek throughout the day. If confidence is moving in one direction you want to try to seek that direction and stay with the order flow you are watching on the charts. The pivot level is a solid way to trade any should only trade it based on the price action you’re watching at that current time.

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