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Picking the Strong Trade Setups

It’s amazing how Friday trading can either be really exciting or downright boring. The EURUSD is trying to figure out what is happening with the fiscal cliff in the United States of America. This price action is dictating a lot of northerly moves lately, giving the Euro a lot of strength. We continue to watch the price action on this currency pair and trade what we see based on our support and resistance levels. We are not forcing trades on either side.

Today’s trade started around 8:45 morning. Watch how price action had dropped from resistance two all the way to the pivot line. This price action allowed us to think about getting into a call option at the pivot for our trade of the day. We didn’t want to force the trade. Although it would’ve worked out at any point missing good trades can happen. Unless you’re really sure about your entry it’s best to just sit on the sidelines.

The actual trade we took was a put option going against the current trend of the EURUSD. Price had moved up from pivot and came into a resistance one. This resistance area had a nice 5 minute bar several hours prior. This part created a nice candlestick wick allowing us to take our put option using the 24option trading platform. We may have jumped in a little bit early because 3 minutes later price was against us by over two pips. Thankfully, price fell off quickly, giving our trade a nice winner closing out our week in the right direction. This trade set up was defined by these five-minute wicks and we will continue trading these as long as they keep producing.

The image below shares the actual trade we took on a 1 minute chart. You can see how price had moved up and formed a wick where our little arrow is located. Price then went up against us before pushing back down in our direction. This trade ended up being really nice considering the price action right now is completely above our entry level.
Smooth December Binary Options Trading

At this moment, which is around 11:15 AM Eastern standard Time. price action has pushed through resistance two all the way up to resistance three. Price had a fight at every resistance level on the way up. You can say breakout trades were good picks today as well. The EURUSD could see new highs for the year by the end of next week. We are coming down into a US economic crisis if the fiscal cliff does not get resolved. I’m not one to discuss economics but it appears that many people are driving markets by this information. We will continue to trade this solid movement no matter what information is coming out of the markets.
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