Last week we saw a great example of how binary options can be incredibly advantageous when trading Forex. All you diehard fans out there that follow me on a weekly basis probably noticed a breakout occurring on the S&P Index 1 hour chart. Now, if you were trading Forex this was a flop – a breakout and 2 hours more before a retrieve. If you didn’t forward your stop loss you would have eventually ended up with a losing trade (I hope this didn’t happen to any of you.) For the binary traders out there, this was a great win, just look at the result on the following chart.
If you were following my analysis you could easily gain a nice payday from a PUT option on the breaking point. As I always say: you don’t need to buy lots of options everyday in order to win money. All you need to do is place one or two good trades per day. This trade could have been one of them so cheers to all of the traders to took advantage of this opportunity and shared with me the stories of their success!
You’ve probably noticed by now that I don’t use complex charts and strategies. The experience I gained through my years of trading has taught me to simplify things. The simpler the picture the clearer the picture the more potential there is win trading with binary options. Here is another example from last week for the GBPUSD currency pair. I identified the trendline on a naked chart and pointed out the breaking point. All you needed to do was place the CALL option and grab the money. As I wrote last week, I anticipate the British pound to continue climbing. Here is the result:
As for this week, I don’t expect any big surprises. I can’t predict the future so who knows there maybe something that shakes up the market. For now everything seems to show strength with a continuing upward trend.
USDCAD has a negative correlation to the market. Since the market is going up, we see a downward trend with this currency pair. Once it reaches to one of the boundaries it is a good time to act. If it reaches the resistance line, look into place a PUT option. If it reaches the support line look to go long with some CALL options.
Another currency pair I’m paying close attention to is USDJPY. For now it seems the currency pair tested the support line a few time with no attempt at a breakout. Currently I don’t see any signs of a breakout but rather from this point we should see a continuing upward trend. However, when it comes to trading you always need to take everything into account. You should definitely pay attention to this support line. The more times it touches the support line with no breakout, the more volatile the currency pair will be when if it ever does drop below the trend. You should be prepared for a PUT option if that happens.
As for the S&P Index, I expect it to retrieve to at least 2085 points, where the resistance line is. As I mentioned earlier, I anticipate a continuation of the uptrend toward the nearest price level.
If you looking for strong, volatile movements, just look at gold. Every time there is a sign that the commodities boundaries are shrinking, it means there is a war going between buyers and sellers. In most cases each group is watching to see who will win. More and more people are sitting on their hands waiting to join the winning side. With all this tension the outcome is usually volatility.
Follow the below chart and act upon any breakouts. In the meantime, you can take advantage of the signs by choosing to buy some boundary binary option.
Here is the gold chart:
That’s it for this week, remember to follow market events!
Good luck with your trading,