A large number of trades today as price trends managed to sustain themselves for at least a few waves. Such days provide a great opportunity to get some positive trades in the book, as not all days move favorably.
Figure 1. EURUSD 1-Minute Chart, London and New York Overlap Period
At the start of the US session the EURUSD was moving sideways, so I wasn’t really interested in trading that. The large drop seen at the left of the chart changed the tone though. Several small pullbacks following the drop provided entry points, into what was likely to be another drop to follow.
The Envelope entries could have been used to establish a short position, or alternatively a triangle formed. When the triangle broke to the downside a short position (put) could have been established.
The price runs to the downside, and then another small pullback provides another short opportunity. Another occurs shortly after, although this resulted in the first loss of the day.
The price breaks the highs seen during the triangle and the first pullback makes a higher low. This shifts the short-term bias to the upside. A long trade occurs after the price has made a couple new higher swing highs and higher swing lows.
Another long entry occurs a short time later, and that trade takes longer to get going as the price rides along the envelope for about 20 minutes. Eventually it does go, and produces a profit.
After a nice pop higher, there is another long trade, although the price quickly drops resulting in a loss.
The strong shift back to the downside indicated we should be looking for shorting (put) opportunities again. The next opportunity comes when a slow moving pullback reaches the upper envelope.
Trading “mini-channel breakouts” would have also worked out well today… especially after London closed (not shown on chart) and there was some rather chaotic movements. Trading the mini-channel breakouts resulted in a number of a high profit trades for very low risk.
If you are having trouble seeing the shifting trends, and deciding when to go long or short (calls or puts), then check out the BinaryOptions.Net YouTube channel. There are loads of videos which cover basic concepts and build up to more advanced concepts.
Some days seem to suit the eye a bit better than others, and which days those are will vary from trader to trader. This was one of those days for me. While there were a couple losing trades, there were lots of positive ones. As a trend trader when we can see the price is running in one direction for several waves we need to take advantage. Take trade as they come, and don’t worry about reversals until they actually occur. But when they do occur, be nimble and ready to jump on the new trend as opportunities arise.