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Trading Smart

It’s funny how some weeks you trade with the trend and others you trade against the trend. Once we found out that price was moving heavily to one side we decided it was best to stick with that direction. When you can get into a trade knowing that you have that behind you, it definitely makes you more confident in the trade you are taking. There were several setups that worked out pretty well for reversals against the trend, but it’s okay not to take those particular trades based on the price action we’ve seen today. Better to be safe then sorry.

We noticed how price was forming a channel all the way up to resistance three. Three different areas of support within this channel were developed before we entered our trade. We looked for price to get down to the bottom of this location and get a good fill. We did take a trade within a pip of our entry thought. Price then consolidated for a couple of minutes. We did have a slight bit of pain, but in the end the price did move up in our direction giving us a two pip winner. Just because you only get two pips versus 10 pips in your direction doesn’t mean it wasn’t a solid trade. I talk about this all the time how price will dictate which direction it will go and as long as it finishes in the way you wanted to, it doesn’t matter.

The image below shares the channel that was formed this morning. Notice how price action came up and hit resistance three giving a solid price action trade in the reverse direction. Had I been in front of my screen at the time I would’ve possibly taken this trade. Although I would have not been completely confident in it, I definitely felt that this area was a good spot for a reversal. We’ve seen the price move up significantly to new highs the last couple weeks and sometimes price has a tendency to slow down after a while. It should be interesting to see what happens going forward this week and into next week. Price is only a short amount pips from reaching new highs over the last several months.
A nice Looking Trade Setup at Resistance Three
Should price break out of the 1.3175 level we could see new highs since April of 2012. This would be a significant blow to the US dollar and allow the Euro to move up nearly $12 since July. Not 10 pips, but $12 from 1.2000 all the way up to 1.320000. Finding these bottoms and tops is not always easy, but for those who got in at the lower levels of 1.20 are now seeing significant returns on their investments.

Hopefully by now you’ve seen the latest page on our binary options chart set up. If you’re new to binary options or haven’t seen it please visit this particular webpage to get more information about how I look at charts and how you can get the same set up on your screen. This will make things a lot easier for you to follow my routine and help you become a better trader in the binary options market. A lot is happening the rest the week on the markets and hopefully you can make some solid trades.
Risk Disclaimer

Comments

  1. Jason Walker says

    Hey Rich

    I’m from the UK and am a newbie to the binary options scene and your videos have been a great help in trying to understand the price action strategy and the markets to a novice like me. I started out using the TradeRush platform about 3 weeks ago trading the EUR/USD currency and yesterday I unfortunately cleaned out my account. Up until I started watching your videos I think I have been trading way too much (around 10-15 time per day) which has contributed to me losing money.

    The price action strategy looks really good and I understand the concepts but I think I am either getting in too early or too late to the trade which has seen me lose out on some trades by a fraction. Can you offer any advice or tips? I’ve deposited another £200 into my account and am determined to be more disciplined and only place trades when I see the right setups.

    Thanks
    Jason

    • Well, cutting back on the amount of trades you take would be step one. You may want to trade a demo account for a little while to make sure you really understand price action. Try to only take trades that have more than 2-3 things working for you. Trends, lines, support and resistance levels, whole numbers etc.. Take your time and don’t trade just to trade.

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