One-Touch Binary Option – Live Trade Example 2

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Video Transcription

Hello traders, let’s trade one options right now, okay. So the first thing we are going to do is we are going to go to our trading platform or to our broker. And we’re going to see what options we have available.

And we have the Euro/USD; we have oil, Aussie/USD, GBP/USD and Euro/Yen. And as you can see, we already have them here on the MT4 platform. We’re going to start with the Euro/USD.

So the first thing you have to do is see the targets that the broker has for you. So we have 1.39212 on the downside on the Euro/USD and 1.39281 on the upside on the same Euro/USD.

Okay, so we’re going to grab the Euro/USD and the first thing we’re going to do is we’re going to go through the five minute chart. This is the five minute chart of the Euro/USD. We are right here and we are going to start with the levels.

This is a support level and we are right here at support and we are going to draw a trend line from this high to this high and as you can see we are breaking through and testing this low right here. And we are right now at 1.39240.

So we’re going to go back to the trading platform and we’re going to see what we are going to do. The level that is on the upside is 1.3928, which is right here. But we are breaking to the downside here. As you can see, we draw the trend line that went from this high and we tested it here a couple of times and then we went back. And here we have a missed breakout or a fake out to the upside.

So what we are going to do here is we’re going to draw some pips from this high to this low. To see where we’re at. And actually, we are not at the .382 right now so what we’re going to do is we’re going to draw pips from this high, which is the very next leg down, to this low, which is the low of the leg down.

And we went all the way here to the .618, as you can see and we are right now, rejecting it. And we are rejecting the trend line to the downside. So what we’re going to do is we’re going to buy one touch to the downside and we’re going to invest $100. Okay.

So there you go. Now we also have oil, but oil right now is not moving at all, let’s see. This is oil. CLM4 is the future contract of oil, but is the same price, okay. As you can see, it is not moving at all so we are going to pass.

And we’re going to go to the Aussie/USD. The Aussie/USD is in a very particular place, okay. This is the 30 minute chart, let’s go to the four-hour chart and as you can see we were on an uptrend. So let’s put our levels, right here, okay. We have this high testing it here, testing it here, testing it here. We broke through the upside and then we moved sideways along it.

Now the thing we’re going to do right now is we’re going to draw some pips from this high to this low. This is the four-hour chart, remember, this is the four-hour chart. What we want to do is to see if these highs are being rejected and if these highs are in confluence with an important pip level on the four-hour chart, and they are.

As you can see, price has retraced all the way back to the .618 and it’s now rejecting it. Now we are going to go to the five minute chart, okay. And this is the five minute chart. We still have our pip levels from the four-hour chart, which are very important, so we are going to keep them. And we’re going to draw a trend line from this high to this high.

And as you can see, what price did here is we broke through the upside and now we are testing this same trend line as support. We tested it here as resistance and we were trading below it and now we broke it and now we are testing it as support.

We are going to draw some pips from this high to this low and we’re going to color it green so we don’t confuse them with the four-hour pips and as you can see, we tested at .382 but since we are testing this trend line as support right now, and this week signals rejection, we are going to buy some one touches to the upside. Here we go. We have the Euro/USD to the downside and the Aussie/USD to the upside.

Now let’s go to cable. Cable is the GBP/USD, the Great Britain Pound and the US dollar pair. And as you can see, this is the 15 minute chart. So we’re going to draw what we call a flag. A flag is a pattern that signals a continuation, but we need to break above these trend lines.

Now what has happened here is that we were in a steep uptrend and now we are in a range. But this is not a flag, but more of a pennant. A pennant is also a continuation pattern, but we are not moving at all. Let’s go to the five minute chart and let’s see what can we trade here.

We are still in this continuation pattern and even though we are breaking with these highs on the five minutes, we are still inside our range so we are not going to trade the GBP/USD. We might trade an aggressive one touch to the upside, because this is a continuation pattern, but the true entry will be above these highs.

So we are going to leave it right now. Let’s see what else we have here. We have the Euro/Yen. And if we go here to the Euro/Yen, let’s go to the four-hour chart. And let’s see what has happened here on the four-hour chart. As you can see, price action is super choppy on the four-hour chart.

But we can still draw some levels and some trend lines that are important for us. Like this one. This is important because we have tested it once and twice and now we’re breaking to the downside. Remember that this is the four-hour chart. We don’t trade off the four-hour chart.

We need to go to the five minute chart and we have our levels right here. Now this is the five minute chart. Let’s draw a trend line from this high to this high to see what has happened.

Actually, what could happen right now is that the previous heavy support area is here, we tested it once, twice; we broke to the downside and now I think we might go and test it again before going down. So what we’re going to do here is we’re going to draw some pips on the five minute chart. Now we are struggling with this high and the .236 Fibonacci retracement level.

But you need to understand that these pips are very particular because we are taking the entire move up. As you can see here, we went all the way down and then up. So what we need to do is grab the immediate high, which is this one, with the immediate low, which is this one. And right now we are just testing the .382.

We have a very heavy confluence here with this support area and the 50 Fibonacci level. So I think we are going to go all the way up here to test this area again. Well this area was tested as support and we are going to go up here to test it as resistance before we go down.

So what we’re going to do here is we are going to buy a one touch option to the upside. So the Euro/Yen will be this one. I’m sorry, this one. And we’re going to invest $100.

So we have three options open right now. We have the Euro/Yen, the Aussie/USD to the upside and of course, we have the Euro/USD to the downside.

Let’s go and take a look at cable again to see what’s going on. And cable on the five minute, I think this area is being rejected heavily because we have… One, two, three tests as resistance and one, two tests as resistance.

So what we’re going to do here is we’re going to buy one touches to the downside on the GBP/USD, but before we do it, we’re going to draw some pips. As you can see, we are moving below the 50 level, which means these levels are being broken. So we’re going to go and we’re going to invest $100 on a one touch to the downside on the GBP/USD. So we have four trades open and we’re going to come back when they expire.

Okay, now we’re back and as you can see, two of our trades expired in the money and two of our trades didn’t. We had a 50% accuracy in just four trades and under five minutes of trading. You can do this all day long with the platforms or the trading platforms that we have for you.

All you need to do is draw the levels, draw the pips, see if the price is rejecting the levels and if they price is going up or down. You can trade one touch options as we do.

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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