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Using Support Areas on the Fly

We started to look at the markets soon after the highs of the day were reached. Price action was coming down to some areas of recent consolidation. It was also around the time when the US markets were about to open. We like to take trades before the US markets open, but as long as we have momentum building, it’s not a problem taking them after. In this case, we noticed how price action started to make two five minute consolidation candles. These candles allowed us to get in a call option at Redwood options. We used a previous support area as a trading guide. This allowed us to take a trade to the North Side and gave us almost 3 pips.

We were seeking a call option based on the momentum building to the north side of 1.3600. Price action had been climbing from pivot and consolidating along the way. We knew we needed a pullback to get in a call option on this particular trading day. Price action eventually pushed down to an area that gave us a good entry on the EURUSD. We did go through a little bit of pain out of the gate but a nice one minute wick candle formed soon after. It’s now showing on the chart, a nice doji candle during our trade. Price climbed pretty strong near the end of the trade and gave us the winner.

In the image below you can see the chart in full effect. Notice how price was climbing just above the pivot area for quite some time in the middle of the night. It eventually made a new highs near resistance one. Price attacked the same area and could not make new highs for the day. Obviously, this is an area that will show some serious resistance if it were to challenge it again later on today or tomorrow. Look for resistance one as a put option potential trade today as well. You can see our green candle which shows our entry point. You can also see the doji candle we mentioned above where the price turned around. Price climbed over the next 30 minutes to make a nice Forex trade if you are in that market today. For our binary trade we were in this for a good amount of time and saw a three pips winner. Ideally, had we waited another minute we would of had the best entry possible, which was the extended move to the lows of the previous 25 minutes. Price action is now climbing up and trying to reach the highs of the day and possibly resistance one. Should price action get up there, it’s definitely an area where you can look for puts. It’s also an area where 1.3600 comes in play as well.
Post US Market Trading
Over the past couple of days we’ve been watching the 1.3542 level do its magic. We will continue trading these areas like this trade from last week and keep a lookout for other locations on other currency pairs that may show similar movement. This will allow us to use an overall set up across the board on multiple currency pairs using a similar price point. The “42” level might be different on the Aussie dollar or pound dollar, but keep in mind of a potential area of reversal that continues to show consistently. For the EURUSD it’s been pretty consistent over the past year. We’ve only been watching this for about a year and we will continue to monitor going forward.

People have been asking us about some kind of trading service and as of right now, this is not in the works. It’s not something we are planning to do in the future as well. As long as you stay with the website and the YouTube channel, you’ll gain enough knowledge to allow your trading to get better every day. We’ve looked back on some of the videos in the past and realized how far we’ve come as traders. During this whole time we’ve grown just like everyone else. We are getting more consistent with our trades and finding the best setups using support and resistance. Our win loss ratio is only getting better and we feel very confident that we can find a good trade every day. If you have any questions about trading binary options or any trading for that matter, you can leave a comment below or get involved on the YouTube channel. We look forward to more trades in the future.

Risk Disclaimer

Comments

  1. Love your work Rich, learning a lot from you!

  2. Rich I see 7 or 8 vids all ITM… do you not post some losers or do you run 100%

    • Yes, this channel is focused on the winners and break even trades. I do have losers for sure. No way I don’t. I just like to show the winners on the channel. What to really look for with a positive touch.

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