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Money Trade on a Nice Pullback

There is nothing like trading the Nonfarm payroll report on the first Friday of every month. Although we were not here to take a nonfarm payroll trade, we did take a secondary trade that was set up perfectly an hour after the news came out. News trading can be exhilarating if you know what you’re doing and are able to get in the trade you want to take. When trading binary options it’s sometimes best to sit on the sidelines and wait for trades to set up for you when picking a direction.

Today’s trade had price action moving towards the north side. Once price decided to come back to the pivot it then cranked up over 100 pips. We saw a trade set up form on a pullback of this move to an area that became a small support area. We entered our call option trade at 24 option and allowed the price to move in our direction for 13 pips. Within that same hour price had moved up another 20 pips coming close to the resistance one area. In this case we called a secondary bottom to a huge leg to the north side. Any time you can trade the binary markets or the Forex markets and can find bottoms like this you are in good shape.

The image below shows exactly what happened just after news broke this morning at 8:30 AM Eastern standard Time. As you can see price moved back into the pivot and then decided to move up from that level and never looked back. You can also see the price action right where we entered our trade on that long candle at around 1632. We had a pain free trade that moved up to the North Side and eventually hit the resistance one area later that morning. A real monster trade.

Non Farm Payroll Chart

It turns out that almost an hour after our trade was entered price moved up more and actually hit resistance one. It then retraced from that resistance area and would’ve made a great put option set up. Any time you can trade against the trend you want to have a solid resistance area or an area where you have a good educated guess about a reversal. Don’t expect price to move significantly lower from this resistance level, but enough to get you in a trade that you feel comfortable with in a short timeframe.

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Comments

  1. hey rich…thnx for all the great videos…im a newbi…and trying to understand how you determine all of your resistance lines . any info you can provide would be greatly appreciated ..im a new subscriber to your utube channel, and look forward to the videos
    everyday…thnx again bud….STEVE

    • I use an indicator that plots the line every night. Are you using MT4 charts? If not, I recommend them for sure. Just keep watching the videos and ask questions.

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