Here’s an update on a Binary Option position that closed on Friday afternoon on the back of a week of good news for AUD short-sellers. You can read the first part about the initial H&S set-up here. The second part with an update on the first part of the trade being closed out is here.
Just a quick reminder. I traded a daily Head & Shoulders pattern on AUDJPY using Binary Options. I placed the trade at point 1 with a No-Touch barrier near the level of the right shoulder and I placed a Touch Barrier trade at 81.50 (point 2 on the chart) which was a target based on a standard chart pattern.
As mentioned previously the No-Touch barrier completed some time ago and I was pleased with the result. The Touch barrier had a far lengthier timeframe in place and I was still not convinced that it would make that target. Well thanks to the RBA, who cut interest rates early this week starting a sell-off in AUD, which only accelerated off the back of poor US NFP numbers on Friday. My 81.50 target was hit on Friday afternoon. And as I write this on Sunday evening the AUDJPY has already gone nearly another 100 pips past my target.
So overall a profitable position built up from two Binary Option trades. Hopefully you can see how combining my normal technical analysis of the markets, utilising simple chart patterns with Binary Option plays you can see how I can take a further low- maintenance positions in the market alongside my normal trading style and instruments.
Until next time, trade well!