Trading GBPJPY and USDJPY with binary options prior to the UK Rate Announcement is safer if using the binary options because your risk is limited on entry. This morning was a perfect example.
Trading GBPJPY and USDJPY With Binary Options Prior to UK Rate Announcement
The 240-minute GBPJPY chart showed that price was at the ATR with potential hidden divergence on the Stochastics because the Stochastics was equal to the prior low but price was not. A binary option was place two strikes from where price was currently trading. The next bar opened at 145.79 and went down to 145.12. That is a 67 pip move away from the entry. However, then it started back up and the profit target was achieved. With only $31 in risk per contract on the trade, it was very easy to stick with the trade versus 67 pip loss on the forex side.
On the USDJPY, the 60 minute chart was at the ATR and the Stochastics was indicating the market was oversold. The Directional Volume indicator also showed there was insufficient sellers to push the market down. In this case, a long binary option was placed with $38 of risk per contract. Even though there was trend divergence on the 240-minute chart, if sellers cannot break through the ATR on the 60-minute chart, the probability of them going down on the 240-minute chart were slim, especially with the Stochastics indicating an oversold market. The most likely path would be upwards to test the prior high.
TradersHelpDesk currently offers two packages for trading GBPJPY and USDJPY with binary options — Create Your Own and Silver Package. Both the Create Your Own Package and Silver Package are on special this week and include the indicators, documentation, and online video training. Plus, if you are new, I even connect and install the indicators for you! For those that just wish to use the Trend ATR indicator it is also on special for only $295 for those trading GBPJPY and USDJPY with binary options.
*Please note that these specials will end soon.