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Taking Retracement Trades

After a really nice weekend it’s sometimes difficult to get your feet wet finding a good set up on the binary options market. Although we weren’t able to take a trade during our normal 8 to 11 range, we were able to find one just after 11 o’clock on the EURUSD. Over the course of the night we saw price climb nearly 100 pips to the whole number 1.33000. It did this relatively smoothly without too many big pullbacks. Waking up this morning to see the price climb that high and then drop off almost the same amount made us look for both calls and puts. The trend was definitely up in the morning and has been down all afternoon on the EURUSD.

The trade we took today saw price coming down to the whole number and pivot line. We saw how price had dropped off so much that it was due for a bounce. Sometimes price doesn’t bounce as much as you think, so we decided to wait for the bounce and then to take a put option going with that current trend. This paid off really well after we got in a put option trade at 1.3222. Price immediately dropped off about 15 pips reaching 20 pips by the end of the trade. The other set up we liked just before this on this particular move was the bounce off the pivot line 20 minutes prior. Had you taken that trade you could have had a nice winner as well. Price has since stair stepped further down and is now dropping off to support level three. The range of the market is over 200 pips today and should set up some decent trades the rest of this week. Anytime you have a huge intraday swing things are definitely taken place that will affect the overall markets in a big way some time soon.

In the image below, you can see how price dropped off from the whole number 1.3300 and pushed all the way down to the 1.3200 and pivot line(Blue). Price bounced off this perfectly like it usually does. Forming that nice retrace three candles later. The trade we took just above the purple line of 1.3219 played off this retracement. Price then fell off immediately, giving us a solid trade before pushing back down through pivot once again. Price kept dropping after this trade was done to support level three at 1.31000, which setup a nice solid trade as well in the late afternoon. Taking trades late afternoon on days like this is okay because price action is definitely still strong. Be on the look out for more big swings if price action continues this way.
Nice Looking Retrace Put
We will continue taking trades at 24 option and trade rush as well as using the charts for most the video. Keep an eye out for new trades the rest of the week and we will continue answering all your questions about the binary options market.

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