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Trading Binary Options in August

Today’s trade had breakout written all over it. We finally broke through to some new highs and that led us to a pullback trade. When trends are really working those are the best trades to take. You try to stick with the trend and wait for a nice pullback area. Don’t take the trade too quick, but in time a setup will occur. By catching this before the US Open meant price was pulling back perfectly for a call option at Traderush. Try to find an extended move on a pullback in this case. We had a couple of pips in pain, but never a doubt in the end.

We started to look for a trade around 9:00 this morning. We noticed how price was definitely pushing higher into new territories where we haven’t been since June. We finally broke out of the highs of June. There was a nice 5 minute wick this initial push to the highs. This is when we knew we could find a pullback trade going with the trend. Anytime you have a nice move up, pullback trades are the best play. We did not take the first initial pullback, however we did wait for an extended move. Price eventually moved down just a little bit more to give us a nice call option. Price went against us for a couple of minutes, but we were fortunate to get in this trade relatively early. Price did eventually start climbing and by the end of the trade it moved up 12 pips in our favor.

The image below shows the actual trade of the day on the EURUSD. Notice how price was climbing from the pivot level and climbed through resistance three which set up a nice wick. This could’ve been a nice trade for put option traders at this particular time. Price did form the cup and climbed through resistance three making new highs above the whole number 1.3400. Eventually it did hit the 1.3430 level and this is where we started looking for our trade. About 45 minutes later we entered our call option and as you can see in the chart, price action climbed not only during our particular trade but soon after it climbed 20 pips more. Price started to pull back just a little bit once again and it could set up for a nice call option in the near future. Should we hang above the new highs the day, we could see some new price territories getting hit the rest of the week. Trade what you see in this case. Don’t get overly excited about moves you may see. Remember, we are still in soft trading times.
A Nice move up on the EURUSD
Be on the lookout for some nice trading tomorrow and try to stick with the trend when you can. Don’t jump on the first pullback you see, but you may find a nice extended move for entry. The momentum is definitely to the North Side, so you may be able to take even longer trades if the payout is higher. This will let you make a little bit more money with a little bit less risk. Over the next few days will determine what happens the rest the month so be on the lookout for any news events that may come up. You can also look at other currency pairs if for any kind of correlation. This may let you take more trades with the trend. When the trend is strong you want to be making the most trades. This will let you avoid the false breaks and whip saw action. If price does fail a couple of times, make sure you wait for more catalysts to work with.

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