Trading EURUSD using binary options produces a nice quick profit using a two hour binary.
Trading EURUSD Using Binary Options
On the 15-minute binary option chart, price had failed to close above the Pivot line. Going two strike prices out lowered my risk to about $25 per contract or $250 trading ten contracts (excluding the $18 roundtrip fee). Price moves down below my strike price but I notice that the Stochastics is overextended and price was in for a retracement. Since there was only 30 minutes left in the binary option, I opted to take profits. The retracement would turn a profitable trade into an unprofitable trade — something I didn’t want to happen.
Additionally, in this trading EURUSD using binary options video, I show you the hidden divergence that appeared on Crude. I knew to look for it because the RadarScreen showed that Crude was at an ATR (average true range stop) and the TradersHelpDesk Directional Volume indicator showed volume divergence on the buyers side. This would be a great trade except the two hour binaries do not open until 8am New York time on Crude. I had to bypass the trade because it did not fit my entry criteria.
The concepts that are shown in this video are in my new book, “Strategies for Trading Binary Options” and you can get it here. Plus they will be taught at the upcoming 4 day webinar and at the Las Vegas seminar.