I hope everyone’s trading has been going well. Or if you’re taking a break, or still learning or in the early stages of your trading career I hope that process has been progressing and enjoyable at the same time.
I took exactly one binary trade on the USD/CHF on December 31. I started watching the market around 1AM EST, and it was undergoing some usual choppiness for the very early morning, and greater choppiness in general due to the ongoing holiday season (in this case, pre-New Year’s).
I did have a pivot level in play at 0.88889. I kept an eye out for potential put options at this level, but due to a strong price move of nearly twenty pips between 2:45 and 3:00, the pivot was breached before forming a high at around 0.88977. Minor resistance formed as price retraced back down to the pivot. Once 0.88977 was re-touched again, this told me that that level could be a reasonable place for put options. Whenever the market is showing sensitivity to a certain price, it’s always a good idea to take notice of it and hopefully exploit it to your advantage in the future.
Once price re-touched 0.88977 for a third time on the 3:25 candlestick and rejected the level, I began to feel very strongly about a put option possibility. Ordinarily, I might have taken the trade right there, but I was still over fifteen minutes out from the next expiry, so I felt I had no need to rush into the trade. But price did hit 0.88977 once again on the 3:30 candle, so I entered a put option at that price. This trade spent the majority of the time against me by about a pip or so, but I did get a one-pip winner by expiration.