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Purple Line Makes Another Great Trade

When it comes to trading in any market we try to focus on what has happened in the past and how we can make the best educated guess about the future. Of course not every trade will go according to plan, but this gives you a better idea of whether to enter a long or short trade. No matter what market condition you are in, knowing what has happened in the past can help you make the best decision on any particular trade. Today we were eyeing our purple line. Yet again today, it came in to play several times, giving traders plenty of options to trade.

The trades today were focused on the purple line at 1.2750. This area had been a support and resistance area for quite some time and we knew if the price came up to it there would be a nice put option setup. About one hour prior to this trade price had moved up to this same area in a rapid formation. These candles attacked the purple line and formed a huge wick on the 5 minute chart. Had you been trading around 7:30 Eastern today you could have taken that trade perfectly without any pain. Price ended up closing nearly 25 pips in a 15 minute expiry.

The trade we took was the secondary move to the purple line after the original move was done. Over the course of an hour price moved back up to 1.2750 once again. We thought about waiting for the price to extend through giving a new high, but we noticed lower highs being formed. When this happens you don’t necessary need the extended move to get in your trade. We took it just about dead even at the line giving us no pain and a nice five pip winner. Price soon dropped another 25 pips from our original entry. Any time you see a trade move in the direction you picked it may give you a little bit more confidence going forward with your trading ideas.

The trade has been over for a couple of hours and price has fought and consolidated just below our price point. Should price get through the 1.2750 number we could see price move up to resistance three giving the momentum to the Euro. Tomorrow, the purple line should be in play as well, but most likely around the support areas versus resistance areas.

The image below shows three areas where you could’ve traded the purple line at 1.275. Although it was a 10 minute expiration it would’ve worked on a 15 or even 30 minute trade. Price moved up hard on the left hand side of the chart to this level. It then consolidated for several bars before pushing back down all the way to resistance one. The second move up was to the same level and immediately wicked on the candlestick and pushed all the way back down. The third move up, which was the trade we took was perfectly entered and exited based on our entry of this line.
Trading Lines to Perfection

Trading in the binary options market can be difficult. Having the right tools and ideas in your mind before trading is critical. Knowing what price action is doing and what could happen is key to your success as a binary options trader. Try to figure out which direction price will go at certain areas and write them down. Set alerts to warn you where price is heading. It will help you identify solid setups in the future. There comes a time when you need to make tough decisions with your trading. Having a couple things working for you is what it takes to make you a successful trader. We will continue the trading videos the rest of the week and hopefully have nice setups like we’ve had the past couple days. We will trade what we see.
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