Every successful trader should know about financial atmosphere and sentiment, especially for the binary option traders, each small effect can ruin a set of trades, it means that you should prepare in advance for all possible events.
Well, you already gained some knowledge about technical analysis, but in order to cover yourself with all tools, you should know about the financial environment as known as fundamental analysis, here you can find more about Technical analysis Vs. fundamental.
So…there are two major events you should take into account:
First is the Fed interest rate decision on the 2nd of Nov 2016 which is expected to be significant decision, there is a good chance the Fed will decide to increase the rate although there is also good chance it will remain the same, in any case the market will be super volatile at the same date.
Second is the United States presidential election date on Nov. 8, until the election date, you should take into account also the series of debates events, open your calendar: Sept. 26, Oct. 4, Oct. 9, Oct. 19.
Each of the debates might influence the market, the big question with this current election is what will happen to global stock market if Donald Trump wins the Presidential election?
The market is a bit worried for some of Trump ideas such as bringing back jobs to the US, going after ‘currency manipulators’ , ‘trade war’ to be delivered as tariffs on imports and more.
Every time Trump increase his chances to win the market will react, yet, the fact he published his ideas, doesn’t mean he will be able or will want to execute it.
Prepare your trading plans for next Monday – the first national debate between Hilary and Trump.
Let’s cut to the chase and let’s analyse the market for next week:
As i mentioned the major event will be the debate on Monday, the second is crude oil inventories on Wednesday.
Zooming out to a daily time frame there is a triangle template that i being created, my guess it will breakout once the new interest rate will be publish ( 2nd of Nov. ).
EURUSD daily chart
Till then, it’s better to chase after some short term trades,
I would like to share with you one of my super simple three stages strategy to trade the EURUSD with binary options, it goes like this:
- Choose 15 min chart (Naked – no indicators)
- Recognize a trend and mark it with resistance or support line
- once the line breaks out it’s a trigger to bet a trade for the same breakout direction
Here is a nice example from last week:
EURUSD 15 min chart
The first candle that try to breakout is a blue one but it doesn’t end with a breakout price, the next red one is actually breakout, when it ends its time to place a PUT option in the same direction, i would just make sure the breakout candle is not way above/under Bolinger bands 2.0
The same triangle template as the EURUSD, we will have to wait for Wednesday to see whats happen, till then, i’d use some Bollinger bands strategy on short time frame (15 min).
Oil Daily chart
The currency is getting closed to the last ‘Brexit’ pick low, usually it will try more then once before it will breakout to a new low
GBPUSD Daily chart
The currency shows an interesting triangle on a weekly chart, when it will breakout it will provide a nice opportunity for a great binary option trade that will be great for ladder option type
You just need to follow the setup on a smaller time frame
USDCHF Weekly chart
That’s all for this week, i’m wising you a successful binary option tradings for this week, please send me your question or any other comments you have.