Support and Resistance (Barry) Signals
My trading style is based on support and resistance breakouts for trading 5-minute binary options. It is a simple breakouts strategy that uses two Meta Trader 4 indicators: Support/Resistance Barry and Value Chart. I am trading the EUR, GBP, USD and JPY currency pairs during the European and U.S. sessions. To perform successfully with this trading style, you need price action knowledge and should spend some time on the charts.
Trading EUR/JPY 13 Nov 2017
EUR/JPY started on a bullish run during the Asia session. The currency pair found resistance at 132.48, after which the Euro lost its gains. As you can see on the chart, the 21 EMA clearly shows the price was moving south. After a small pullback (3 bullish candles), the pair found new resistance, after which the price continued south. The fourth white candle broke the support, and I entered my Put trade at the opening of the fifth bearish candle. The candle opened at 132.05 and closed in the money, at 131.98.
Trading GBP/JPY 13 Nov 2017
GBP/JPY dropped to 148.05. After losing 160 pips, the price started to consolidate, and I was looking to enter a Call trade. Three candles touched the newly created resistance but didn’t break it. The fourth candle (bullish candle with no wicks) closed above the most recent resistance, and I placed a 5-minute Call trade. The candle opened at 148.39 and closed in the money, at 148.44.
EUR/USD trading 14 Nov 2017
The Euro was boosted after the positive macroeconomic news; the pair reached new high of 1.1744. I waited for some time to take this trade, but in the end, it paid off. The 21 EMA clearly showed the EUR/USD was moving in an uptrend, and I was looking for a break in the channel. After three indecisive candles that just closed above the recent resistance, I decided to go with a 5-minute Call trade.
EUR/USD trading 15 Nov 2017
I just took a EUR/USD Put trade with a 5-minute expiry. The price was moving in a channel with lower highs and an overextended bullish candle brokered the channel. I didn't place a Call binary option on the next candle, but it would have been an ITM trade as well. By following my strategy, I waited for a breakout in the opposite direction, which happened on the second bearish candle after the newly created resistance.
USD/JPY trading 16 Nov 2017
Following the U.S. data, the USD/JPY pair continued to lose its recent gains. You can clearly see on the chart the reversal in direction and the small channel with lower highs. The price clearly continues south, and I was looking to place a Put trade. The big bearish candle smashed out of the channel, one minute before the close, I entered my trade. I didn't wait for the full close because I was expecting an undeceive candle (doji) to follow. As you can see, it came out a hammer. Entering at the opening of the new candle would have been an ITM trade as well, a very lucky one, just one pip lower.
GBP/USD trading 17 Nov 2017
The Pound just bounced from support 1.3170 after dropping 70 pips during the day, and I was looking to place a fresh 5-minute Call trade. After two indecisive candles closed below, a small bullish candle closed above the resistance 1.3194. I decided it was time for my Call trade, but that decision proved to be wrong. The breaking black candle was too small to continue the buyers' enthusiasm, and that was my main mistake here. The indecision in the Pound continues after tough Brexit trade talks between the UK and Germany.