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Trading a Solid Trend Line

Today is a pure example of a trend forming day on the EURUSD. Price continued to move up from support level one and has not looked back over the past few hours. If you look on a 15 minute chart you can see how price hit that same price area at 1.230 a couple of days ago and significantly moved to the North Side. Now prices came back to the 1.230 which is also support level one again and has bounced all the way up to pivot at 1.2340. Looking at the chart price it continues to move up in a stair step pattern forming all new higher lows. When you see this type of price action it’s best to stick to call options on pullbacks.

We took our trade using the pullback on the north side trend moving EURUSD. Price had not hit the pivot yet and we decided to take a call option just below it. Price moved against us a few pips but then continued its pattern in the long direction. Any time you can see a trade form like this you can have more confidence that your trade will work out. In the end, our price was up five pips from her entry and we could have gotten in to a 3 min. later and possibly had a ten pip winner today.

The image below shares exactly what has happened over the last few hours. Notice the trend line going up to the North Side through pivot. Price continued to make higher lows and bounced off this area or around this area to continue up. There were several occasions where we could’ve taken a call option trade on Monday, August 20 2012. We took our trade at 24option.com and got a decent fill for winning trade.

Bouncing all the way up

I did mention in the video that there could be a potential put option setup at pivot. However, price has been superstrong and it would be going against the trend on a strong market. In this case, it’s best to stay away from put options and look for extended moves. Remember, we like to see extended moves on reversal trades. This gives you more of a cushion against a strong moving currency pair.
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Comments

  1. Mark Leigh says:

    Hi Im new to Binary options trading. Please could you give me any advice thanks

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