Hi traders, I have decided to make a weekly post on my blog on the weekly binary options trading overview which I usually already send out to those on my email list (sign up for my email list HERE) . This week’s outlook is fairly long.. hope this helps you out!
Looking at the daily chart, many main pairs are still in the midst of trying to identify the ends of the current extensions. USDJPY, EURUSD, AUDUSD for instance, are stretching the bollinger bands (Upper Band: USDJPY, Lower Band: EURUSD, AUDUSD) on D1 Chart and seem to be forming Dojis. While EURUSD is at a 161.8% Fibonacci Extension, the AUDUSD and USDJPY are at a no-man’s land, a short distance from the 261.8%. GBPUSD is currently just beneath the middle bollinger, and testing the 1.2300 support level. USDCHF is at 123.6% has just crossed the yearly open price of 1.00. There were several days last week where EURUSD, USDCHF, USDJPY were losing their usual correlation. If GBPUSD breaking below the 1.2300 support and USDCHF climbing higher could see a continuation of the current bull and bear runs.
Under these circumstances, I would typically expect to see very gradual sloping, “stair-cased style” patterns on the lower timeframes like M1, M5. However, this is not the case during the Asian and Europe sessions this beginning of the week. I attempted following some trade setups, and was able to generally win, requiring martingale to win only 2 of 6 setups taken. i consider this fairly decent. Business as usual for now, with those trading M1 and M5.
As mentioned, what happens with the GBPUSD and USDCHF could be catalysts for the rest of the week’s short term trading. So traders should keep cautious of the trading conditions, and watch your winning percentages, being sure to stop and fall back if your win rate drops below 60% at any given time. Similarly, during Binary Lab webinars this week, I won’t hesitate to end webinars prematurely if conditions turn. I suggest reducing your trade sizes to 40% of your normal, to enable you to sensibly re-enter, if need be, or abandon setups if you run into “flagging” consolidations.
(Subject to cancelling in event of “ABC” conditions (Abnormal, Bad, or Challenging)
All times in EST (GMT -5)
MONDAY – 930am
TUESDAY – 830am
WEDNESDAY – 330am
THURSDAY – 4am (Thanksgiving, Might cancel)
FRIDAY – 830am
See you on the webinars folks! Wish you all a good trading week!
Founder, Binary Lab
P.S. For those not yet in the Binary Lab, join HERE to be able to join us on our Daily Webinars, Download my Trading Indicators, and join and Discuss Trades with other traders in our “Traders’ Chat”!