Trading USDJPY binary signals today when the alert indicated a long position at 9:15 am with a two hour binary option.
Trading USDJPY Binary Signals
In this example, I was watching the 15 and 30 minute USDJPY charts. Notice that the blue dot appears on the 15 minute and immediately afterwards a reversal bar to the upside forms with the Stochastic very close to be oversold. Also notice how the 30 minute chart shows that price was testing the ATR on the 30 minute chart. Additionally, even though the Stochastic is heading down on the 30 minute chart, what is going to happen with a reversal bar? It changes the path to upwards typically.
The signal was issued on the last red bar. The next bar (green) forms the reversal bar needed to turn the Stochastic upwards (which is what I wanted).
Although the signals are based on the 2 hour binaries, with about 35 minutes left in the 10am binary option, trading USDJPY binary signals, I opted to do both the 10am and 11am binaries.
Although I have set targets at $80 for taking profits, I will not allow these positions to give profits back. Why? Because my job as a trader is to take what the market offers. In this case, the $80 target was filled on the 10am and I took profits at $47 on the remaining position because price began going against me. I took what it was offering.
On the 10am expiration I made $46.75 per contract. On the 11am expiration, I made $10.50 per contract. My return on risk to reward ratio was 1 : .82, or below my desired risk to reward of 1:2. However, considering that, at the moment, the USDJPY is range bound, I lower my expectations and simply take profits when offered. In other words, I adapt to the market conditions when trading USDJPY binary signals.