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Purple Line of 1.35000 Gets Broken

We knew the purple line of 1.35000 would get broken when no one was watching. It busted through this price in the middle of the night. Had you been awake, some nice break out trades were available. It’s okay to miss the original entry of a significant whole number. What you try to do is emulate what just happened in the future. In our case, we watched the price move almost identically to the action this morning. Price had moved up through resistance three before pulling back and creating our entry.

We watched price drop off from the resistant three area for a couple of five minute candles. Price then formed a small little wick near a recent support area. We entered our call option on the ten minute expiry of 24option.com. Price went against us by two pips before closing up nearly 8 pips in our favor. Sticking with the trend on this trade was probably the smartest thing we’ve done all week. Yesterday we took a trade against the trend and we were lucky to have a winner. This trade however has significantly moved up since the original entry. Spot Forex traders would be of about 35 pips at this moment.

The image below has two important things to look at. First we’ll talk about the trade we took. Notice the little red arrow pointing up. This is the entry candle after the most recent pullback at resistance three. Price moved up in our favor by eight pips and consolidated back downward a few pips before making new highs 1.3570. Although you can see on the chart, price is still moving up and we should keep an eye out for the price point of 1.36000. We also want talk about an area of the breakout of 1.35000. Notice how price finally broke through this area. We talk about breakouts being a strong place to take trades, however we look for the pullback before entering. Price made new highs before coming back down to the 1.35000 level (Purple Line) which also was a resistance one area. That is where you take your long option or long trade. No surprise it rose after that nearly 70 pips to the north side. These are the best ways to trade breakouts. Avoid the original move and take the secondary move. This will confirm the breakout is in play.
Nice Bounce on this Trade
Price action is definitely on the northern side. Make sure you’re watching the trend and taking call options as the majority of your trades. Avoid put options unless a perfect set up falls in your lap. Price is moving quickly to the 1.3600 level and we could see it either today or tomorrow. We will continue trading the binary options market and hope you guys are trading well.

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