The referendum today in Italy is the first junction where the future of the EU will be determined, in case the Italian people will vote ‘No’ for embracing the reforms suggested by Italy PM Renzi, it might become the first step for domino effect start with Italian exit – Italexit from the EU and continue with bank system cries allover Europe.
It is too soon to get into conclusions but the warning signs are up there.
Just keep in mind that the price of the market and currency is always take into account all risks so even if the vote is not for Itexit, it will still be calculated into the currency of the EU and will affect mostly on EURUSD, GBPUSD.
How you can use this information for your own good? as a binary option trader you need to know not only the technical analysis of the market, you also need to be familier with the fundamental environment, it’s a jungle out there, in order to survive you need to learn first the area and different creatures.
So this week i expect the market will be in a waiting mode but it will also be volatile for short time frames, the market is wating for the rate decision of the Fed to be publish on December 14, the expectation is the Fed will increase the rate, for more details on the exact date and time you can visit Forexfactory.com/calender, if you like you can check also fxstreet.com/economic-calendar
On this weekly analysis i’ll go over some of the major assets and review the Bollinger strategy.
As mentioned in the strategy, the strategy is more reliable when you take a step back to a wider time frame such as 1 hour and 4 hours, in the chart below there are two opportunities for good trades, it is not always as successful but the winning odds are great.
Actualy it’s very simple strategy to execute, all you need to do is to use ‘Naked’ graph, adding Bollinger 2.0 and Bollinger 3.0
Now, there are couple of rules you should follow before placing any trade, i’ll explain it for ‘Put’ option, it is vice versa for Call option
- Candle is breaking out Bolloinger 2.0
- Closing price is touching bollinger 3.0 (or above)
- At least half of the candle is above bollinger 2.0
- place a trade for ‘Put’ option at the end of the hour
For it simplicity, it brings nice successful rates.
Another rule of course is the more the time frame is wider the successful rate of the strategy will increase accordingly.
GBPUSD 4 hours chart
The strategy is most recommended with GBPUSD, Oil, EURUSD.
For all traders who follow my analysis you already know i always recommend to trade on long time frames and also to choose carefully your trade by waiting for the right setup with a well designed strategy, and yet, i get lots of requests from traders who wish to have a strategy for short term time frames, so here is 60 second strategy for EURUSD.
Rules are as follow:
- Use Naked chart
- Mark a trend (3 touching points at least)
- Once you see a breakout it’s time to hit a trade with the same direction.
Here are two examples from the past week:
EURUSD 60 seconds
Now let’s take a look on some of the assets:
Oil – keep an eye on this one there is a good chance for a breakout from resistance line, you wanna be there when it is happening.
USDCAD – is heading towards the support line, time to seek for ‘Put’ option setup
That’s for this week, i hope you’ll have a succesful tradings, please leave me a message for any comment or question you have in mind.