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.
EUR/JPY trading 20 Nov 2017
The Euro is suffering after the German coalition talks collapsed, and I see room for EUR/JPY to fall further. You can clearly see the formed channel and its break out with a big bearish candle. I entered my Put trade at the close of the breaking candle as I expected the down trend to continue, which proved to be the correct decision here.
EUR/JPY trading 21 Nov 2017
Yesterday, I saw space for EUR/JPY to fall further, and today, we are witnessing the drop. On the 5-min chart above, you can see three bearish candles closing below the support line, and in all three cases, it follows another bearish candle. When the price is moving in a downtrend and a bearish candle closes below support, it proves to be a good Put trade signal. I have placed a Put binary option in the last scenario on this chart, which one may consider a bit risky because of the long wick.
USD/JPY trading 29 Nov 2017
Today, USD/JPY was moving in higher opening space for some nice Call trades. The U.S. Dollar was boosted because of revised data, which shows an economic growth of 3.3%. After reaching 112.15, the pair lost momentum, and we saw the pullback with two bearish candles on the hourly chart. After the pullback, the pair was on a rally again, and I placed a 5-minute Call trade based on pure price action. You can see the unsuccessful attempt of breaking resistance by the bullish candle with the big wick (inverted hammer). Thus, I had to wait and see what came next. Two small bearish candles were engulfed by a strong bullish candle with almost no wicks. At the close of that candle, I entered a new 5-minute Call trade.
GBP/JPY trading 04 Dec 2017
The British pound was boosted after some positive Brexit headlines earlier today, but later plummeted over 100 pips because of a failed Brexit deal. On the 5-minute chart, you can see the overextended candle with a big wick that broke the recent support. I prefer skip trading after such an indecisive candlestick. The next bearish candle closed with almost no wick, and I entered my 5-min Put trade, which closed in the money.