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Post Super Bowl Trading

We try to trade with the trend when we can. After Friday’s big move to the north side it was time for a pullback. We watched how price moved back up to today’s recent highs in a consolidation range. It then fell off exactly how we predicted it. It dropped giving us a nice 12 pip winner. By only taking this one trade we made out well. If you can avoid over trading you will be that much better off.

Any time you see price move up significantly for a long period of time, you look for pullbacks, before the continuation to start up again. On Friday we had a Nonfarm payroll trade that sent the EURUSD up to 1.3700. In that same day we watched it come all the way back over 100 pips. This formed a huge wick on the daily chart. Price today has been off about 80 pips from the close of Friday. Consolidating all day near the lows and still making new lows as we write this post.

1.3500 is only 40 pips away and could get to support level three. If this were to happen price could see even further lows tomorrow or the next day. However, be on the lookout for price to continue to the North side with the current daily trend, making new highs above 1.37000. There are a lot of possibilities still out there whether the price will move up or down. As binary option traders we look for the best setups only. Don’t force the trade.

Today’s trade was based on the price moving to the South side. We then sought consolidation forming for about four hours. Price had moved up and move down on three different occasions. On the third occasion we took our put option: with today’s trend. We got in at the top of this level before pushing down 13 pips and closing out 11 pips in our favor. We didn’t see any pain on this setup at Traderush. This was a solid put option on a current days trend, where the overall markets are reversing and are currently weak.

The image below shows the price action, consolidating for those several hours before our trade was entered. You can see how we put a arrow where our strike price was created and how price dropped off forming new lows later that morning. We will continue trading these types of trades until we see the trend shift back up.
Trend was down so we took a put
Look for trades around 1.35000 which is also support level three. This might also get to an extended level, so be careful not to jump in early. If price were to break back up to support level one, you could be closer to the 1.3600 level, so be aware of any northern moves. If we do close where we are now we could see new highs rest of the week. Trade what you see.

We mentioned how Forex Black book is now available for download. Make sure you get your copy and installed as soon as possible. You have access to the software for free for some time and then after a certain period is over, purchase will have to be made to continue using it. If you have a questions about the software you can always contact us. We also created a
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