Sticking with a binary signal trade requires some confidence in the pattern. In this example, Gail shows why she would stick with a trade versus cutting her losses and it all is dependent on what the chart is telling her.
Sticking with a Binary Signal Trade
For clients that have the TradersHelpDesk Trend and Stochastics, this will probably make perfect sense. Why? Because the reason for adding the congestion dot was to distinguish break out trades from support and resistance trades. In these two examples, price flipped the ATR and formed a congestion dot. The typical pattern that results when this happens is for price to retest the new ATR before continuing. Additionally, the Stochastics was overbought in both trades, further indicating that, more likely than not, price would retest as the Stochastics was too high.
The retesting of the ATR will work in favor of the binary option (if using a two hour binary as Gail recommends) because as price is retracing, the binary is getting closer to expiration. Will it always work in your favor? No, nothing always works in trading but more often than not it does.
In this video, Gail Mercer, founder of TradersHelpDesk, shows you two live examples using two signals from this morning. She discusses why she is sticking with the binary signal trade versus simply exiting the trade.
Using the method described in the video, the GBPUSD was able to capture $20 per contract in profits and the GBPJPY was a loss.