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Getting Back to Business

It’s not only good to start the week off right, but to start the month off in the right direction. Getting into the last month of the year always makes you want to make as much money as possible. This is the month where you figure out whether you’re current trading techniques are working in your favor. This will allow you to continue your success or let you evaluate what is not working. We were seeking trades this morning based on the heavy price action to the north side. This particular price has been moving up into new high areas since September. Several trade setups occurred throughout the night and will occur the rest of the week. In today’s trade we were fortunate to bring in another purple line that was plotted many months ago.

We were looking for a trade at Bank de binary this morning working against the trend. At first we were seeking call options, but nothing set up in our favor to make it worthwhile. Price pushed down through our new purple line of 1.3042. This line was an area of resistance back in September. We used it today as an area of support and resistance on the binary options market. We obviously want to take the best possible trades that are given to us.

Sometimes when price pushes through a certain level it has a tendency to gravitate back up. Price did move through the purple line and we waited for the pullback. Price then moved perfectly to the level and it allowed us to enter the trade at 1.3044. We took our put option and watched the price move in our direction without any pain. The trade worked out really well giving us a four Pip winner. Price continued to move in this direction before expanding above it and back into the highs of the day. This is why we say, Trade What You See.

The image below shows the trade in action. You can see how price moved down through the purple line and then within a few minutes came back and touched it. We got in at this level and felt pretty confident that it would go back down before it had any continuation to the north side. This was working against the current trend. Anytime you see price action like this, it makes trades much easier.

Although this is a one minute chart, if you look to the left side you will see the price action move fast through resistance three. This price action formed a huge five-minute wick candle on a 5 minute chart. Anytime you have a wick of this length it makes it a good area to take a reversal trade. Had we seen this earlier in the day we would’ve jumped on a short option or short Forex trade. A lot of times wicks become huge area of resistance or the opposite case if the wick was pointing South.
New Purple Line Trade

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