Trading EURUSD with Binary Options and divergence results in a $400 profit or a 100% return on investment using support and resistance with the Stochastics hidden divergence signal.
Trading EURUSD with Binary Options and Divergence
The Stochastics hidden divergence is a great signal because typically price moves in your direction immediately. I entered slightly early on this one because I could see the “pausing” within the price bars. Price did go 3 pips lower than where my entry was and then it immediately proceeded up above the Out of the Money strike price I had entered at (1.1220). The Directional Volume indicator had also indicated that buyers were stepping in right at the Pivot Line. Although price had broken thru the pivot lines, I knew that a retest was necessary to ensure that it would act as support. With the pausing effect in the price bars, more likely than not, price was going up as sellers were not going to step in.
I set an $80 profit target which would result in a return on investment of 100% or $400 since I was trading ten contracts. Trading EURUSD with Binary Options and divergence results in the profit target being achieved.
Even though price went higher after I exited the trade, price then returned to below the strike price at 1.1220. This happens a lot and, if traders cannot control their greed, they would end up losing on a good time.