On last Friday, Wall Street has noted her worst day since the ‘Brexit’ while major indexes has dive by 2.5% into a two months low.
The main reason is that the market is finally understands that there is a quite good chance for raising interest (USD) in the upcoming days.
For us, binary option traders, it really doesn’t matter if the decision will take place next month or afterwards or this month, as traders we just need to take advantage of market situation, for the binary option trader there’s more than one tool to gain money from an anxious market.
The first rate announcement will occur at 21st of Sep so save the date, it is is going to be super volatile in the market, follow my next analysis to get full information and steps for how to gain money out of it, same as we did at the ‘Brexit’ event.
Until we get this date, there is no point to guess what will be the next move, most likely that each asset (currency, index and commodity) will remain at its daily boundaries with a tendency for declines / neutral trend.
Let’s get started with the main index – the S&P
After a super long neutral trend followed by low volatile market, the S&P provided us a breakout that was difficult to predict, it was not a question of if it will occur but when…
This is all about Bollinger bands, it is a powerful indicator that can tell us the whole story about the market, every time you see Bollinger bands are narrowing down in a horizontal trend, it is most likely will end with a sharp and volatile move such as last Friday.
S&P Daily, Bollinger bands
I personally use Bollinger bands with a great success so I already shared my best strategies which you can find here
The situation now with the S&P can provides us lots of opportunities, using Bollinger bands you can tell when it will retrieve, for instance, if you see a the price is reaching and close beyond Bollinger 3.0 it is a good sign for a retrieve all you have to do is to zoom in to a smaller time frame for the right timing, choose the relevant binary option type and don’t forget to know what amount you are willing to risk
Recently, I received lots of replies of how to get rich graphs include indicators such as Bollinger bands MACD, stochastic, moving average etc…
The issue is that not every broker provides full graphic system, but you can find free graph services at the followings:
Both are pretty good, just choose the one you like to trade with the most.
Here at http://www.binary-options.trade/brokers/ we gathered also a list of the best broker where chart platform is one of the criteria’s.
Up next in our weekly analysis, the EURUSD, while the S&P has sharply declined the EURUSD has kept with the same low volatile move, until the 21st of September we should expect the currecy will remain in between the triangle boundaries.
EURUSD Daily Triangle
The classic move after a breakout is that the currency retrieves to the breakout line, this is exactly what the GBP does, moreover there is a uptrend support line crosses the breakout line, I expect the GBPUSD to reach 1.32130 as first step
Similar to the EURUSD its being trade in between a triangle boundaries, before the rate announcement there is not supposed to be any breakout, you may try boundary type binary option when the market has no volatility
When the market fear rizing up the best asset to invest on is the Gold, that’s why I think it will continue the uptrend from the last few weeks, in the meanwhile, same as the EUR and Oil the Gold creates also a triangle pattern which I assume it will remain until the next USD rating announcement.
Have a great week