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Moving Right Along

Last week we had some serious moves to the North side on the EURUSD. Our goal today was to seek trades near support levels that were ready to make a bounce with the overall trend. Over the course of the night we saw price move through resistance two, but by the time the morning came around we started getting below resistance one. This is why we started looking for call options at

Priced started to consolidate after forming a new low around 1.33335. The euro came up to almost touch resistance one but failed three different times forming nice five-minute wicks on the chart. Price then started to make another move back down to the lows, but never got that far. This gave us a point of entry for a call option after four five minute candles stalled out.

We took our call option late in the five-minute candle and watched the price rise after about 2 minutes. Price ended up closing five pips in our favor giving us nice winner before moving up even higher after the trade was done. Price did fall off again back down through our entry point, only to regroup for a couple of minutes before thrusting back to the North Side, pushing through resistance one. Price has since consolidated at this area and it should be a place to consider call and put options. After big moves last week a lot of things opened up since we are in new trading territory. We’ll wait for price show us what to do. No need to force trades when nothing is in play yet.

The image below shows our entry using the five-minute EURUSD chart. You can see our little arrow pointing up which was our entry point. Although we did see a bit of pain for a couple of minutes, price did move up giving us a nice winner. These are the types of trades when the trend is working in your direction that make your chances stronger. Usually when you’re looking at a consolidation play and you are against the trend, price will have a tendency to move against you at the last minute. We’ve all been there. Being in a trade where price is consolidating, having the trend on your side is your best bet. It increases your odds significantly.
Consolidation Jumper Candle
Over the weekend we wrote a blog post about a software that we’ve been beta testing. The Forex Black book software should be available in early February. So far it’s produced a lot of pips on the Forex market and should be interesting to see how it does when it is released. We will continue to monitor the software and give updates to the YouTube channel and other means. If you have any questions about this or anything else add a comment below or send us an e-mail.

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