Hey everyone, tonight i made another 2/3 ITM. I decided to get rid of the Stochastic as i don’t really use it often and it doesn’t play a key role in my trading decisions. My ultimate goal is to simplify my charts so there’s no distractions.
When i started looking at the charts, the market was trending up but then entered into a ranging period. So i drew the ranges support and resistance levels which outlined higher probability trades and waited around for price to come back down and touch the support level. Well in a very short time, price did dip down with one large bearish bar and touched the support line, i watched how price reacted around that level to see if it would push through, and it didn’t, so i placed a 30 min expiry call, and won.
My second trade i thought the strong uptrend, that broke through previous bar highs, would continue up, but i should have payed attention to price around that area because it did NOT want to go through the 1.03940 area, price kept reaching that level and closing below over and over, and essentially it created a double top in the lower time frame. You can go back and look at the 1 minute time frame to verify it was a double top, but i don’t look at the 1min tf anymore as it adds to the confusion. I lost the second trade, but i placed a put after price was rejected with a 5 min expiry and won. The setup of the second trade and third trade was also similar to the 2b setup, as price reached a high, dipped down, and went a little higher and failed to follow through. A 2b setup is if prices penetrate the previous high but fail to carry through and immediately drop below the previous high, the trend is apt to reverse. The converse is true for downtrends, so this is another setup to add to your toolbox that is reliable.
I’m still reading those books by Al Brooks about price action, so i don’t get to trade as long as i like since the books are so long. If anyone has any questions about my methods, please ask me. I’ve dug around the internet reading tons of forums about binary options and the markets, so I’ve gathered and idea of what seems to work and what doesn’t. One thing everyone should understand, is my method of trading may not work for you, you should do whatever makes sense to you. i believe everyone can learn price action, and then develop a sound trading strategy from it. Hope all is well and happy trading!