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Post Holiday Binary Trading

Sometimes you just need to be thankful that you found a trade. Today was nothing special after the long weekend in the United States. I was pretty excited to look at the charts this morning only to be disappointed by the lack of activity. The EURUSD wasn’t making the moves that it made on Friday or anything similar to that fashion. With so many days off you just want to get back in the game and have everything start to flow the way it was, but sometimes you just have to take what you get.

Today’s trade was based on price action that was forming in a tight channel. This channel formed a descending triangle on a 5 minute chart. This isn’t normally a pattern I like to trade. However, knowing that price action was very boring today I had to find the best possible setup. The only catalysts I had working for me besides this descending triangle was the price movement on the pound dollar moving up and price had been above the pivot the past couple of days. Nothing special, but enough to stick with the small trend.

We entered our trade at 24option pretty early in the expiry. We had over 10 minutes of waiting time before the trade closed. Our entry was on the lower side of the triangle. I also like to talk about these particular setups as if you were to twist the rubber band over and over again. What tends to happen is the tightness needs to let go eventually. In previous trade I talked about the sling shot method, where price has moved so far in one direction it will have a tendency to pull back into itself(Eventually). In this particular case, price was getting really tight and a breakout was set to occur. In the end, price did not breakout. In fact it did finish above our entry price giving us a winner for the trade of the day.

The image below shows a EURUSD 15 min. chart. As you can see, price had moved up from the pivot level on Sunday night and touched the resistance one area. Price then pulled all the way back down to the pivot and formed a nice doji candle. That shows the top and the bottom of this particular triangle as the needlepoint started the form. Price then moved up before wicking pretty hard. Price action continued to get tighter and tighter as time moved on on. Any time you see this kind of price action it’s best to just walk away. Very boring price action for sure.
Boring Trading Charts

It’s not worth trying to pick a direction to trade when there is no direction that you can see. We will be back tomorrow for Tuesday’s trade of the day, so make sure you continue to watch the videos and subscribe to the channel if you haven’t already. If you have a questions or comments you can always leave those below as well.
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