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Taking Binary Options Trades with Clean Setups

Over the past few weeks we’ve been talking about extended moves on a particular currency pair. The EURUSD likes to make strong moves and when it does it’s best to take a reversal trade after we’ve reached the extended area which is resistance three or support level three. We like these trades because price is moving into an area that it doesn’t move into very often. When prices get above an average daily range it tends to want to come back into that particular range. There are plenty of times price will keep moving in that direction, but this is one of those setups where you can get a good price estimate on whether the price will reverse or not.

When looking for a trade this morning we noticed that this had already occurred at support level three. Although we missed this particular trade we weren’t giving up on our trade of the day. Soon after this price action occurred the price moved up from the extended move closer to support level two. It formed a small channel in which we took our put option at trade rush today. This trade moved in our favor by over six pips and was pain free all the way.

Friday trading can be difficult especially in the afternoon, so this is why we seek to trade in the morning when price is smoother. Any time you can find a trade set up with an extended move consider that an area where bottom has been formed. Although we took a put option back towards that direction we were not seeking for this trade to go down past that extended move at any given point. Our goal with this trade was to get the price to drop just below our rate and not have any concerns. Later in the day price could move above Support two or even higher, but as binary options traders we don’t worry about that so much.

The image below shows the extended move trade that we missed earlier this morning. This trade is one we love to take on either call options at support level three or put options at resistance three. You can take the same kind of trade at the line but it’s always nice to see price move through it first getting the best price for your trade. This gives you a little bit more of a cushion for the price to move and allow you a better price on the binary option.

Extended Move Past Support Three

The image below shows a solid Pivot Point Trade setup. Had you taken a put option you would have been in great shape.

Nice Pivot Point Trade

Risk Disclaimer

Comments

  1. Been watching your youtube videos and looking over your website for about a week. Great information!!!
    I’m a 1 min eur/usd forex trader and was looking at binary options to “supplement” my trading. Your style seems to match mine almost to the letter so I’m happy I found you to learn more about binary options! I do have a question in regards to binary options: what is the need to use more than 1 broker? Are there potential problems in having just 1 broker?
    Thanks.

    • Lisa,

      I’m glad I can help. I use more than one broker to keep my videos interesting. It breaks it up from the same thing every day. The three brokers I use are the best going right now. Depending on your account size you can pick either of the ones I have listed http://www.binaryoptiontrading.com/binary-brokers/

      Let me know if you need help getting an account open. I can help make sure you get taken care of.

  2. Hi Rich,

    You are one of my mentors, i have been watching your youtube videos for over 1.5 month and learned a lot and improved my trading. I have already trippled my demo account at 4xp.com and i am going to open live account at 240ption soon. I have one question i see that you are using Pulse Fibonacci + Pivot indicator. I have tried to download this indicator from various sites, but all of them lagging or have wrong text coding. I can not read which one of them Resistance which is Support. Could you please to share the link when i can download properly working version of this indicator.

    Thank you and over best regards.
    FXTrader

    • Thanks for the comments. It means a lot.

      Search for the fibo_pivot indicator in Google to get the latest version. I know it is out there somewhere. I told someone the other day and he was able to find it.

      If you open a 24option account please remember to contact me first.

  3. Hi Rich, thank you for your reply and help. Unfortunately there are too much versions and currently i use FiboPiv_v2.mq4 but its showing wrong S/R levels. Could you please to share your indicator. I would be very grateful to you if u send it to my email.

    Thanks in advance.

    I will send you an email before i open an account with 24option.

    Best regards,
    FXTrader

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