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Change of Direction in the Markets

A little bit of news can make the markets change direction very quick. We watched the price of the EURUSD climbd to some nice gains, extended through resistance three. Price action formed a couple of candles above this line and eventually started its freefall. News came out out of the euro zone that Spain and Greece were suffering the worst jobless rates in many many years. This news caused the euro drop down relatively quick over a course of an hour. With the drop of over 100 pips, price action has dictated a huge reversal in the most recent trending market. Although there were some possible call options throughout the early morning, it wasn’t until after the US markets opened, when we started thinking about call options.

Today’s trade was based on the continuation of this reversal to the south side. We watched our price push through pivot line and the whole number of 1.3000. As price started to rise up a little, we entered our put option seeking a continuation seeking new lows. Our trade ended up closing in favor by seven pips, giving us a nice winner for April 25, 2013. We took this trade at 24 option on a 15 min. expiry. The main reason for taking this trade was because price action on balances was very quick to turn back down. After seeing several areas where price up to try and reverse it immediately fell off. By the third time we decided that it was best to continue in this direction in a Boyd call option reversals.

In the image below you can see how the chart formed a gradual climb up above resistance three. Within four candles, the drop started. It ended up going down over 100 pips to the pivot level and whole number. News can change anything at any time no matter what. You need to stay on top of your events when trading and try not to get caught up in miscommunication trades. Notice how price only stalled out at resistance one before pushing all the way down to the pivot. At this point, price has tried to rise back up, but only reached 20 pips or so from the lows of the day. Price will most likely break the lows of the day and continue further down. Should we get more bad news from the euro zone anything can happen.
Binary Options Trading at 24option
There has been some interesting price action on the Apple stock lately. If you are binary trading Apple, you have seen several fluctuations in both directions. Make sure you are careful on your entries but there should be some good setups going forward. If you have any questions or comments you can always ask below. Risk Disclaimer

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