No matter what your preference is, if you in favour of Trump or Hillary, i shop you took the most of the election day, as expected the market was super volatile, and as a binary option trader, there were several oportunities to gain some profits, even though it’s usually not so easy in this case it was a quite simple.
In case you follow my weekly analysis, I mentioned on last week analysis two things:
- It is very much possible that Trump will win the elections
- The market will react with a great decline if Trump will win
So, if you prepared well, you know the market is going to react sharply, you could use a one touch binary option or ladder option, and to try both sides.
for me it was obvious to try and bet for a sharp decline of the market, in any case once the market streched the limit and was breaking out the bollinger bands, it was a huge opportunity to reverse and place a trade for the market to retrieve, and that’s it, you don’t need to make lots and lots of trades, for me it was enough to catch two good trades and to call it a day.
As some of you requested, Before we analyse the week ahead, let’s make a small review for some of the binary option types:
- What are the main binary option types available
- When to use each of the types
- Strategies for binary option types
Main binary option types:
- One touch – provides you a target price, in case the asset (currency/ stock / comodity ) is reaching the price you win the trade, BTW, it’s there is no need to stay above the target price (or below if it’s put option), you just need the market price will touch the target.
- Ladder option, the same as one touch but with several targets and more point of risks Vs. opportunity, the far target points are usualy get above 200% of winning
- Boundary option – provide you two target prices which the market price shuold stay between them
Now, if the market is super volatile and there is a spike expect to happen so ladder option is the right one, on the other hand, the best binary option type to handle a non-volatile market is the boundary option.
Let’s analyse the market for the upcoming week, start with the S&P,
So all signs are showing the buyers are still here, on one hand it looks like it’s a beginning of another uptrend, but, there are still signs of momentum indicators and diversion that point on a decline that suppose to happen
Here is a great example of the bollinger strategy in 4 hour chart, the long candle is breaking out bollinger 3.0 while it is also closing the price there, it’s a classic opportunity for placing put binary option
As for the next move i’d stay out from the currency at this point, there is nothing in the near future that shows on a technical pattern or triggers
It looks like it broke out the support line, but for now it’s not convincing enough, in order to call it a break out, most of the candle should be below the support line, in case it will retrieve there is a good chance to see Gold heading upward, if not…we keep to follow:
Oil – first target is the support line around 42.6 as shown in the daily chart
Oil – Daily
Have a great and successful trading