Day Trading Binary Options – Live Lesson

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Video Transcription

Hello traders. Welcome to the Binary Options Day Trading Live session. Today we’re going to day trade the Euro/U.S. dollar, the U.S. dollar/Swiss Franc, the Euro/Yen and the GBP/USD.

First of all what we need to do is go to the one hour chart and see where we are at with these currency pairs. Let’s start with the Euro/U.S. dollar. Okay. So the Euro/U.S. dollar as you can see has come to an area of heavy resistance around here. If we pull out the Fibonacci levels from this high to this low, we can see that actually we have reached the 61.8 level.

So what we are going to is we are going to buy puts on this currency pair for a 30 minute expiration option. We are going to make a $100 put on the Euro/U.S. dollar. Now, let’s go back to the charts. As you can see here, is a pretty easy setup. We have a double top after this huge move up, so I’m very confident on this setup.

If we go back to the tile charts and let’s go to the Euro/Yen. This is the Euro/Yen one hour chart. As you can see here, we are at this low. If we go to the five minute chart of the Euro/Yen, we can see that we are actually right there at support. But we don’t have a confirmation yet that these levels have been rejected. So we are going back to the one hour chart and we are going to pull the Fibonacci retracement levels. We’re going to add one ratio to these Fibs, which is the 88.6 ratio. Which is an important level, it is not on this Fibonacci by default, but we like to add it on our trading.

Here we are almost at the 100 Fibonacci level, which means that we have almost retraced 100% of this entire move up. What we are going to do now, is we are going to pull another Fibonacci level from this low to this high to see if this actually confluences with the levels that we have here.

Let’s color it black so we can make the difference on the five minute chart. Here’s the five minute chart and the Fibonacci levels confluence right here at the 78.6 with the 61.8. We have broken through all of them.

I don’t think that we have a confirmation just yet that this area of support has been rejected. So we are not going to trade the Euro/Yen at this time. We need actual confirmation of rejection.

Let’s go to the GPB/USD This is the one hour chart. Let’s go to the four hour chart to see where we are at. You can see here that we have this spike high and we also have this area of resistance right here. We are at this area of resistance.

Let’s pull some Fibonacci levels out to see where we are at. You can see that the 78.6 confluences perfectly with this spike high, with this level of resistance. Based on the four hour chart, we can’t say that this area has been rejected. But, what we can say is that we are right there and we are going to look at the five minute chart to see if we can actually trade this to the downside. Let’s pull some trend lines right here.

You can see that this high has been respected clearly. You can see that we are actually making higher lows, which means that, well, we can’t say that this is a triangle. This is basically a wedge, and what we are going to do here is that we are going to buy puts on this currency pair too. Grab the GBP/USD for a 30 minute expiration option, where we are going to buy puts right here at resistance.

We are trading the GBP/USD and the Euro/U.S. dollar. The Euro/U.S. dollar has moved against us a little bit, but it doesn’t matter guys because what we are doing here is we are giving our trade room to breathe, room to move in our favor.

Let’s go back to the Euro/U.S. dollar one hour chart and let’s see what this currency pair is doing. We are here right at resistance of the 61.8 retracement and if we go back to the 15 minute chart, you can actually see that we are making higher lows and we have broken with them.

This can be a fake out and cannot be a fake out, but as you can see, price is actually moving down in our favor and this is why we are giving this trade 30 minutes in order to move in our favor.

If we go to the Dollar/Swiss Franc one hour chart, you can see that we have moved all the way down. I don’t think that we have a clear setup to buy any binary options on this pair.

So what we are going to do is we are going to try to trade the Aussie/U.S. dollar. If we go back to the four hour chart, to the data chart of the Aussie/U.S. dollar, you can see that we have actually broken with this massive area of resistance. Tested after [inaudible 00:06:59] support.

We tested it again a few days ago as resistance and we have now broken to the upside. If we grab a Fibonacci level from this high to this low, you can see that we have broken with the 61.8 level too. But if we grab a line here and put it on this spike high, you can see that the actual area of resistance is this one.

If we go back to the one hour chart, just to see what price is doing above this area of resistance, you can see that we have printed one, two, three candles. Three one hour candles with long wicks to the upside.

Remember that candlesticks give you a sense of the market bias. This means that even though double pressure was there, because we moved all the way down up here, we are closing all the way down here. There is a clear resistance at this area.

Let’s go back to the five minute chart and you can see that we have cleared this area of support. What we are going to do here is we are going to buy puts on the Aussie/U.S. dollar. If we go to the Aussie/U.S. dollar and choose a 30 minute expiration option, where we are going to buy puts. So we are trading puts or we bought puts on the Aussie/U.S. dollar, on the GBP/USD and on the Euro/U.S. dollar.

As you can see price has moved literally a few pips above our entry zone or entry level, but that doesn’t matter because we are giving the trade room to breathe, room to take direction.

Let’s go back now to our charting platform and let’s go and try to trade the U.S. dollar/Canadian dollar to see if we actually have a setup right here. The 15 minute chart shows what seems to be here, a bottom, okay? A base. When price creates a base, it means that it tests the same area as support several times.

Now, let’s go to the one hour chart to see if we have actually a level to trade from. As you can see, the one hour chart shows that we are still making lower lows. If we want to count a trade, we have to look for areas of actual support. So we have found one right here, but we broke with this area.

The next area of support is this spike low, which we have tested with this wick right here. The red candle went all the way to this area of support, but closed above. Making it a rejection on the four hour. And the next candle started open above the area of support and it’s printing loose.

If we go back to the five minute chart, you can see that we have actually moved above this area of support. Right now we are printing a massive candle to the downside. What we are going to do here, since we are on the five minute chart, we are going to pull the Fib from this high to this low.

You can see that we actually rejected the 50 level so we are going to buy puts on a very short term trade on the U.S. dollar/Canadian dollar.

Now we buy puts on this currency pair and let our trade breathe. Now we have four open trades and we will be back when these options expire to see how we did.

Okay, we are back and as you can see, two of our trades ended up in the money and two of our options expired out of the money. This means that we had a 50% accuracy in our trading today.

The thing about the GBP/USD and the Euro/USD dollar is that we’ve lacked follow through to the downside. This can happen when we lack momentum, so we need to choose the correct times of the day to trade.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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