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Price Action Trade

Getting back into our trading this week we were seeking some solid trades on the binary options market. Sometimes price on the currency pair doesn’t create a wide range and decides to consolidate in a fairly tight range. This is the time when you should trade price action and use it to your advantage on all trades until these channels are broken. Today’s setup was based purely on price action.

We entered our trade on the high side of the consolidation area that had two levels of resistance. This put option trade allowed the price to move up a little bit giving it some wiggle room. In the end, the price only moved up against us by a half PIP for only a few seconds. Price never went against us to the point where there was any pain. The price then moved down giving us a nice solid winner for our trade the day on the EURUSD.

A lot of times trades will get formed without the use of pivots or support and resistance lines. The trade today was a perfect example of trading pure price action using what you see in front you for your trade. It is almost like the picture was painted and we knew the price would go in the direction we wanted according to the chart. This 24 option trade was a success for a $370 payout.

The image below shows a five-minute euro USD chart this morning. We wanted to place this image in this post because it occurred around the same time that our trade of the day was taken. As you can see, the price had moved up a couple times and reversed at the same level at the pivot on two different occasions. This shows that the pivot was fairly strong as a resistance point on the price on the euro. You can see how their almost exact copies of each other.

5 Minute Wicks

Trading these wicks on pivots is a powerful way to trade price action. Once you see the wick created you can then take future trades at the same level in the future. In this case, we were able to see this almost to a tee on this chart. The price then ended up consolidating for a couple hours in which we got our trade this morning.

Be sure to get your 72 hour Option Fair Demo Account set up as soon as possible. This will give you 72 hours to test out the platform and then allow you to make a decision of whether you want to make a deposit.

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