Knowing when to use divergence pays off on Nasdaq binary options this morning. In this case, it indicated that price would continue up and it did netting profits on both 20 minute binary options and a 2 hour binary option.
Divergence Pays Off on Nasdaq Binary Options
In this case, price had moved above the Pivot line and had a slight retracement to the ATR. Since the TradersHelpDesk ATR turned white, I knew I was close enough to the average true range stop to take a trade. The TradersHelpDesk Directional volume showed that sellers were decreasing on the way back to the ATR (plus sign on the chart) and the icing on the cake was the divergence in the Stochastics indicator showing that price would more than likely make a new high.
Knowing where price was likely to go, I executed two trades:
- 20 minute binary option at 4726.50 strike price for $49.50 in risk
- 2 Hour binary option at 4724 strike price for $52.25 in risk
I closed the 20 minute binary option at $92.50 for a profit of $43 per contract. Then I closed the 2 hour binary option out at $91 per contract for a profit of $38.75.
This particular setup is one of the high probability setups that simply screams the direction of your trade. The setup works on futures, forex, and binary options. This technique will be taught at the upcoming webinar sessions later this month. And, if you register before Friday, the Early Bird rate is only $597.