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Trading Binary Option Channels

Trading channels on the markets is one of the all-time trading methods when it comes to trading tight ranges. Today on the EURUSD we saw a channel develop on the old resistance area which became a new support area. This price allowed the position to hold within a few pips and then catapult up to the North Side.

We took this trade early in the expiration time, with almost 13 minutes to go. Right out the gate the trade gave us a couple pips of pain, but then saw itself forming a strong move to the North Side. This particular move was in our favor and never really looked back. Although the price seemed to hit a small area of resistance only for a short period of time, it then started to move back up. This was one of his biggest moves we’ve seen on a 15 minute trade while videotaping live. It’s not often that you see significant moves like this that move almost 20 pips in your favor. When this does happen however, it is one of the better feelings as a trader.

The image below shows the channel on both sides. You could see the little check marks we placed in the image to show where the price topped out in where it bottomed out. You can also see where we entered on the last part of the channel before moving up and breaking above the top of the channel. When trading these specific trading channels you should always keep in mind of what support and resistance areas are around you and what else is happening in the markets. Although they tend to work a lot staying inside a channel eventually the price will breakout. In this case we were lucky to find the bottom of the channel and to watch the breakout occur while in the trade.

Trading Channels
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