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Trading Resistance at Old Support

We talk about price action on the binary markets every day. We will continue to do this until we find a different way to trade the binary options market. At this point we’ve been trading with you in mind for several months and the one thing that has stayed the same is price action trades based on the charts are delivering. If you haven’t noticed the patterns we look for, it will be a good idea to watch our videos and read the blog posts to catch up on all the things you can look for to making your trades.

Today’s trade was based on something that happened yesterday. Over the past few days price action has been slowing down since Friday. Whenever this happens you have to take into consideration where price will go on a slow moving day versus a big moving day. In this case, price was below support level II, but not actually down to support level III. Price then continued to move back up into support level I.

This is where we decided to take our trade based on this move back up into this support area that became new resistance. We’d like to see these trades especially with the trend. If you notice on a daily chart how price action has been dropping ever since that Doji candle the other day. I wanted to stick with the southerly trend that was occurring right now. This trade moved through support/resistance but only by a couple of pips before moving back down into our favor. In the end, the price moved down a couple pips to give us a nice winner. Price continued to move down over the next several minutes before pushing back up to the same level.

The image below shares what happened on this particular trade and what occurred after the trade was finished. Notice how price action moved up through support level I and then fell. It fought for a little while before pushing down into the southerly direction. Price then continued to move down later this morning before pushing back up into this resistance area again. Price recently pushed through this support level making its way back up to the pivot. This should be an interesting price to watch as the day continues. If price holds around the pivot level by the end of the closing we should have another doji candle which means we could push higher tomorrow. Always consider what is happening in the overall markets and the news around the world. Although we have seen a slowdown recently things could pick up tomorrow and push to resistance three by the end of the day tomorrow.
Old Support Becomes New Resistance
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