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Picking Your Spots is Critical

Keeping an eye on the markets is critical in your trading. If you miss a trade there is always another. This morning we missed the best possible option, which was a call option at the pivot level. More about this later.

Today’s trade was based on price action to a resistance area. We noticed how price had moved up earlier and continued to thrust to the North Side. Resistance one was in our sights but we knew how price had fallen back prior to that, which gave us a nice area for put option entry. This trade went against us in the first few minutes, but turned out to be a great trade allowing the price to fall back down to the short side. When you can get a set up like this going against the trend it helps to have a few things working for you. Yesterday we had significant moves the North Side which led us to believe that today would be more of a consolidation or slow moving day.

When you do have a second day of price movement after a big move you want to try to stick with the trend as much as possible, but if something shows you some weakness you also want to take that as well. The second is also a fight between the bulls and the bears. When that happens you can take either trade, call or put depending on which looks best.

We took our trade at 24option today and it looked pretty good after the first few minutes of pain. It ended up being an 8 pip winner and since this trade has fallen off several more pips. I do expect the price to consolidate for the day and possibly make its way back down to the pivot level or through resistance one. Thursday looks like it can be the day of reckoning where price will decide whether to keep moving in the yesterday’s trend or come back down. As binary option traders we don’t really focus on what could happen tomorrow, but these are the types of things you want to be aware of when you take your calls and puts. In binary options, you want to be well aware of your surroundings.

The image below shows how powerful the pivot level was this morning. As you can see, the price moved down to the pivot and only within a minute did it stay there before moving back up to the North Side. With the trend being up, this allowed you to trade the pivot with pretty good confidence. It did come back down after that first touch, but as you can see it only came back just above the pivot before moving it back up towards resistance one. These are the types of trades you try to seek and unfortunately we were not in front of our desk to take this particular trade because this would have been the trade of the day.
Perfect Pivot Trade

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Comments

  1. elaine clark says

    im new to this and would appreciate some advice

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