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Trading Against the Trend

This week has shown some pretty boring price action. It wasn’t until Wednesday when price decided to move off the cliff and push to the 1.2700’s level. We’ve been talking about this for quite a while and it finally made its way all the way to this area. Price on the daily chart has been meandering around the 1.2800 for the past week and today it finally made its move. We started watching price action push to the downside and looked for trades to go with the trend. However, today was a trade based on a reversal going back up against the trend.

Price had hit new lows a couple of hours prior to our entry. We started looking for a trade around 8:30 this morning and as price was pushing to the downside, it started to reach the lows of the day. We looked for an extended low and took our call option at Traderush. If you would like more information about trade rush you can see them here. Price went against us a couple of pips before moving up to the North Side relatively quick. Price moved up on the one minute candles continuously and closed out as an eight Pip winner. Price continued to move up a few more after the trade was done. At the end of the trade, before pushing back down once again. Price formed another new low as well as a huge five minute wick.

Price has since moved around the same area. Price has hit new lows and hit the area of 1.2750. This is a half whole number that we traded back in the day. As price continues to climb we could see some nice put options setup.

We did see price come down to 1.2800 in the middle of the night. We hope some of you took this call option against the trend. Price bounced significantly about 12 pips, setting up a nice 10 minute expiry.
This was a Non Trending Trade
Yesterday was a good lesson in being patient. If you watched the video you can see how price was just standing still between 20 and 40 pips throughout the whole day. On days like this, it’s best just to walk away and not even trade. We almost didn’t even have a trade of the day. Price action was against us for about 95% of the time before eventually moving in our direction at the end. We don’t like to be in trades like that, but fortunately it ended in our direction. We will continue to stay patient.

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