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Ideal Pivot Point Trade

We continue to only trade solid setups on the binary markets. It only took us about 20 minutes to find our trade set up this morning. We noticed how price action had hit resistance three in the middle the night. Although the spread between resistance three and pivot was not that wide, we still looked at the drop-off that occurred all the way down to support level one. Breakout traders got suckered into some poor long trades on the EURUSD last night and most likely had to sell off their losing trades. We came into the markets after the bounce off support level one. Price had climbed up to the pivot line about an hour before we started looking for our trade. Fortunately for us, price fell back down once again and on the second time up to the pivot line, we decided to enter a trade.

Price was climbing up to the pivot line and formed a five minute candle wick. It had started to consolidate before making one more extended move past the pivot. We took our put option around 9:10 this morning before the US markets opened. Price immediately moved in our direction showing almost 10 pips in our favor during the trade. By the time the trade was over we had a nice six Pip winner and price continued to move in our direction soon after. This was a pretty standard trade set up for us and we will continue to try to find these going forward. Anytime you can use the pivot line in your favor, with the direction of the trend, things become a lot easier.

In the image below you can see the price action that occurred over the course the night. Notice how price had almost hit resistance three and came back down to support level one. Although the distance between the two was not that wide, it still showed the drop-off was happening on the EURUSD. Price consolidated around support one before trying to move back up to the pivot level. Price has a tendency to gravitate to the pivot level when it’s relatively close. The image shows how price moved up the pivot on several occasions. Each of these set up a trade in one form or another. We continue to take these trades based on the price action we’ve seen over the last few weeks. With this type ranging markets throughout the day you need to take tight trades as well. Although you should be looking for the best trade setups as possible, you may need to branch out a bit more.
1 minute chart showing a nice setup
We’ve seen the whole number of 1.3000 quite often over the last few weeks. It should be interesting to see if we finally break down to the 1.2700’s or above the 1.3200’s. This is something we’ll keep an eye out for going forward, and only trade the best setups possible. Try not to get locked into a direction when the market is fluxing. Look for the trades to come to you and try not to force anything that isn’t there.
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