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Call Option in the Middle of July

Today’s trade was purely based on price action using an old resistance level which then became our new support. Any time you can trade these price points gives you the empowerment in your training. It’s not always easy to find these old resistance or old support levels and then reverse him. You sometimes need to look back over the course of the day to find this particular setup.

In today’s case we noticed that price had moved up pretty significantly from the pivot point on the pound dollar. It stair stepped its way up and eventually hit a resistance area that held pretty well. Over the course of the next 15 minutes price pushed through this original resistance area. This area of resistance now became support. Price then started to move up into a Resistance one on the chart. It then had a nice 20 to 25 pip move all the way down to our new support(Old Resistance).

We took the call option knowing that the trend was to the north side and that this price would hold. We did go through a little bit of pain and in the end it was winner for the trade of the day. Over the past week we’ve been looking more at trading with the trend and in this case it definitely helped us take this particular trade. The thing to remember is to always think about where price has been and what kind of psychological factors were involved for price.

The image below shows how price had moved up and formed a nice solid wick candle on the 1 minute chart. We used the Wick as our new support level when we took our trade. Although the ideal setup is on the top of the closed bar on the Wick. Our trade had pushed through the wick all the way to the bottom near the bar open. However, price then bounced up from that point giving us our winner. These are the types of trades that can make your week and are considered significant with binary options.

Trading Support

This 24 option trade was a short-term expiry, but ended up being victorious for Monday, July 16, 2012. If you have any questions or comments please leave them below and we look forward to hearing from you.

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