It’s generally a good idea to allow entry points to establish themselves prior to trading digital options. Forcing a trade is among one the biggest mistakes made by traders. It can be frustrating to wait a long time for an indicator, and then there are also false signals to consider. This strategy works to avoid these negatives and can be quite beneficial when you want to trade with the EUR/USD currency pair.
For a currency pair like the EUR/USD, whole number trading works to highlight the areas of support and resistance. For example, an asset price that is increasing without much momentum could lead some traders to believe that a Put position might be the right selection. The thoughts connected to whole numbers can have quite the impact, as they often draw the attention of the trader much more so than pips. Some traders would rather trade the breakout, while others prefer to watch for reversal. Even when strategies are used, personal preferences will always play a role in binary options trading.
There exists more than one whole number strategies for the EUR/USD pair. One is known as the Wall Strategy. When using this version, you’ll need the asset price to climb from a lower level to a whole number that the asset price rarely exceeds, or has not pushed past in the last 24-hours. You’ll need to evaluate past movement to find this number. Many traders consider this the area of reversal. Reversal trades can be effective with both short and long-term expiry periods. The strength of the wall strategy becomes clear when the price reverses. It will be at this point that those who traded a breakout will realize they’ve made a mistake. When selling starts there should be further downward movement to trade with and profit from.
Another opportunity using the whole number digital options strategy comes when the EUR/USD price has pushed through the area of resistance. This signifies that the asset has now entered a region of support. When the price forms a solid base level, buying and selling should balance just higher than the average or median whole number, making it possible for the price to hold its position for a period of time. Again, you’ll need to look back and establish the highest, lowest, and average price.
Keep in mind that when a whole number is mentioned in relation to digital options trading, it does’t always suggest an exact number. It is possible to trade with half wholes, or even much smaller numbers. In fact, when trading digital options, a single pip can make the difference between a trade finishing in the money or out of the money. Your goal will always be to have each trade finish in your favor, with plenty of profit going into your digital options account. Strategies such as these two EUR/USD strategies can help you accomplish this.