These countertrend trades using forex binary options and spreads allow traders to limit their risk when the markets are pulling back within the trend.
Countertrend Trades Using Binary Options
In this video, Gail Mercer, founder of TradersHelpDesk, shows you how she countertrend trades forex using binary options and explains why she thought the markets would retrace this morning.
The strongest countertrend trade setup is when you have a market that is overextended on multiple timeframes. In this case, the AUDUSD and USDCAD were overextended on multiple timeframes so the entry was in the direction of the pullback. The least favorable setup was on the EURUSD because only the 240 minute was overextended.
The overextension is measured using the TradersHelpDesk Stochastics indicator. Anything above 80 is overbought and anything below 20 is considered to be oversold.