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Price Action Trading

Today was an interesting ride on the binary options market. We took our trade at 24option.com and went against the trend for the day. The past few weeks we’ve been more or less sticking with the trend and only taking solid setups if we looked against it. Price action was dictating to the Southside on the overall markets and this showed heavily on the EURUSD. Price moved down through support level three in the middle of the night and continued to hold this area for a few hours. It wasn’t until we saw price action move back up to the north side where we decided to take our call option trade.

As price was rising from the lower area of support level three we noticed higher lows were being developed along the way. Once this was concluded we entered our trade on a pullback back down to one of the higher lows. Right after entering the trade we noticed how price moved back down to support level three which was also a whole number at 1.2900. At this point there was nothing we can do as we were already in this trade, but we knew price could get down there knowing that the overall trend was to the Southside. Trading against the trend can be a bit hairy so please be careful if you do this in the future.

Soon after entry price dropped off 10 pips against us pushing slightly through that whole number of 1.290. However, over the next 10 min. price steadily rose another 15 pips which in the end gave us a nice three pip winner. It wasn’t an ideal trade with the price going against us causing a lot of pain. Price action was dictating a northerly move at this particular time. Any time you can trade the markets using price action you are in better shape for being successful.

Price will continue to fluctuate around this area until it gets back to either support level two or pushes further south on the day. We will continue to monitor the markets and wait for our trade of the day tomorrow.

You can see in this picture below how if we had waited three or four more minutes before entering our trade we would’ve had a perfect trade. Price moved all the way back down to support level three and created a wick at this level. This level also included the whole number of 1.2900 and bounced completely up about 15 pips soon after hitting it. Ideally this was the better trade and we know that now. Always looks clearer after the fact.
Support and Whole Number Holding

If you can see trades develop like this in the future please make sure you try to stick with the trend. If you decide to go against it definitively make sure you have a couple of catalysts working for you. 24 option definitively produced a good solid feed today. We felt very comfortable with our entry and exit.

Risk Disclaimer

Comments

  1. Richard Allard says

    Nice trade i,m a newbie at binary trading , great videos you have posted great for a begginer.which site do you personally recommend and do you have to take the bonus they offer.
    thanks
    Richard

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