Start Trading Binaries with the FREE Binary Options Robot - CLICK HERE

Using Lower Highs for Entry

Today’s trade was based on the EURUSD moving to the north side only to reach just above the pivot line and then try to break that high two different times. On the third attempt to break the most recent high we noticed how it was stalling quite a bit. This is when we entered are put option, which gave us a solid 13 PIP winner and actually dropped another 30 pips after that giving spot Forex traders a solid entry as well.

Trading lower highs for put options is a solid method of understanding resistance at certain price levels. In this case we saw a huge 5 min. wick develop on the the chart that led us to believe that the price had a lot of resistance at that particular area. As prices move up to these levels and fall quickly usually means you need to look for secondary entry to see whether the price breaks that original high or falls back down to make a new low.

As binary option traders these are the areas where you can really profit and not have to worry so much about the price moving against you. In this trade the price never went against us and only fell with a lot of strength given us the trade of the day and making it a winner but a significant amount. The video below will go into the trade a bit more.

Here is an image that came to my attention around lunch time. Although this is later in the day, you can see how the price tries to move back through the pivot like the trade we took earlier for the trade of the day. It stayed above the pivot for two minutes and fell perfectly for 40 pips as I write this post. Obviously this area has some serious weakness. If this price does break this area, look for this price range to become a nice area of support.

Taking a EURUSD Trade around Pivot

Risk Disclaimer

Comments

  1. Francisco says

    I took these two trades ! Gotta love trading ! thanks rich!

Speak Your Mind

*