I was happy to see some of your comments about how you made strong profits trading binary options with my strategies, especially if you’ve been following my weekly analysis and were able to adopt some of my market interpretations. I know it is not an easy task to get rid of old habits and start fresh with a new promising method. In any case, I’m very happy to hear about your experience and your successful trades.
The market is mostly experiencing a neutral trend which is very natural after a volatile bear market with a small retrieve. However, the market remains volatile. For this week, let’s go over some of the opportunities that might play out in the near future as well as a short refresher on the short time strategy, trading with Bollinger bands.
Analysis of the S&P index:
This time let’s start with a look at the S&P index, a flagship asset that gives us a good sense of market sentiment.
There is no change from last week’s analysis. For now, I don’t see anything that leads me to believe there will be a breakout from the support line and the overall bullish trend. The market may continue in a more neutral trend within the boundaries (see below chart). Remember, in the long term, if the price trend doesn’t breakout it is still a bullish market as you can see on the weekly chart below.
Chart: S&P Index
Analysis of USDJPY
When looking at the financial market as a whole, I expect to see correlation between major indexed and major currencies but, just because we see a similar trend, it doesn’t mean the two assets will respond to market conditions in the same way. For instance, I noticed a similar trend for USDJPY that we see with the S&P.
On a daily basis, I do think there is a potential breakout waiting in the wings with USDJPY. Prepare yourself for one the breakout happens. I highly recommend you zoom-in to a smaller time frame such as 15 mins. Wait for the right setup to act upon.
Analysis of AUDUSD
Another currency pair with a similar trend is AUDUSD on the daily chart. Follow the trend until it reaches the resistance line and see what opportunities are available with the neutral trend.
As you can see from the above graph, the market tells us we need to be patient and wait for potential breakouts, but in the meanwhile there opportunities to win money from the volatility. One of my favorite strategies I constantly use with a great rate of success is the Bandit strategy (It simply steals money from the market ).
Reminder: Bandit Strategy
As you remember, the Bandit strategy is based on standard deviation levels. When the market reaches a peak high or a peak low (see below chart), a setup that might happen once a day – sometimes twice, you can have excellent success rates. Only when the candle closes above or below Bollinger band 3.0 should you consider placing your option against the trend.
Chart: GBPUSD 15min
Analysis of Crude Oil:
Lastly, I would to go over the market for Crude Oil. If you are following the news like me, you are probably seeing big headlines about oil prices from week to week. In fact, the oil price is fairly stable and aligns with the rest of the market towards a neutral trend although still volatile. The same barriers form last week remain. In this environment, I would suggest reading the market with assistance from Bollinger bands strategy.
Chart Crude Oil:
Below is an example of a short time frame marked with two beautiful setups for Crude Oil in a 15min chart using the Bandit strategy.
Chart: Crude Oil 15min
That’s it for now. I hope you enjoyed my weekly analysis. Happy trading!