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Taking Trades in Choppy Markets

Today’s price action continues to trade like yesterday and it could stay like this for a while. We saw price go up and down over 100 pips yesterday and with news coming out of the euro and US markets, price could get a bit crazy over the next few days. Usually when you see this type of movement you’re better off letting things settle down before attempting to take a trade. Today we saw some nice consolidation after almost hitting the 1.2700’s. Price came up and pushed through pivot a couple of times and eventually broke through the whole number of 1.2900. We started to look for both calls and puts at this level and waited patiently for the price to come to our spot. Remember, you have to pick your spots wisely.

Price eventually made new highs for the day and started to retreat back down. We then saw a recent support area where we decided to take our call option back up to the north side. Price had moved against us for the first few minutes after entry, but eventually moved up giving us a nice three Pip winner today. We did see about eight pips in favor on this trade. After the trade was closed, price did move down to the pivot level. Once price hit the pivot, it bounced up and is now consolidating a couple of hours after our trade at same price point. It should be interesting to see what happens the rest the day, so keep an eye out for the markets to make radical moves later on. We are also getting into a holiday weekend, so at some point price will start to slow down.

The chart below shows the price action that occurred over the course of the night and during our trade. You can see how price climbed up through the pivot level a couple of times and consolidated. Price eventually moved up making the new highs and the green arrow shows our call option entry. This trade did go against us for a couple of minutes before moving in our direction. We took this trade at 24option today he continues to use this broker as our leading trading site. It’s hard to tell what price might do the rest of the day, but we are seeing a fight develop between the 1.3000 number and the 1.2800 number.
Choppy Price Action Continues
When taking trades around the holiday you need to take precaution of a slowdown in the markets. Price could completely stall out and leave you hanging if you’re looking for a bigger move. Keep an eye out on the levels and only take the best trades possible. If you can avoid it, try to stay out of the markets on Friday, especially in the afternoon. The markets will not be open on Monday. Risk Disclaimer

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