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Trading Resistance

It’s always interesting to see what happens to the markets after a big move on a Friday. Mondays are usually a big day, but have a tendency to figure out which direction to go is always in question. All last week we were watching the euro rise against the dollar based on several news events. This will most likely continue this week and paying attention to what is happening will be critical to making your binary option trades.

We noticed how price was rising from pivot over the last couple hours when we decided to take our put option at resistance level one. Price was rising up fast to this resistance level, but it did show signs of weakness throughout the morning. We immediately got in our put option trade just as the price pushed through resistance one. Price then pulled back immediately after entry given us six pips in our direction. Within a few minutes price then moved with a jumper candle to the North Side and went against us by several pips. In the end, price decided to push back down below our entry giving us a winner at TradeRush.

The chart painted the picture pretty clearly on this particular trade. As you can see in the image below on a 15 minute chart the EURUSD price action was hitting the high on Friday. This is a huge catalysts when deciding to take a put option trade against the overall trend. We like to trade with the trend, but when you have a set up that contains an area of resistance that is very favorable we will take it. You can also see how price was hanging around the pivot level on Friday and did the same thing today. It’s all about price action when you combine the setups.
15 Minute Resistance Area
The image below shares today’s trade as price was coming up to the resistance level. You can see how price moves up to resistance and pulled back immediately and then tried to move through it again. In the end, price moved back down to the latest consolidation area on the most recent move up. Whenever you take a trade against the overall trend please consider what is in your favor. We took this trade TradeRush today and it was a three Pip winner. At any point of this trade it could have gone against us, however we did notice the pieces that made it favorable to trade.

Nice Resistance Trade at TradeRush

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