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By: Adam Stone
April 11th 2014 7:30am GMT, London UK

Binary options trading refocuses on the downtrend today and for a change, I think it’s time to just go with the flow. After many months of exhibiting a very negative propensity to enter the index market on the way down, it looks as though the winds of change might be upon us. Yesterday was the first day in nearly 5 months where average volume of binary options transactions was higher than the average on US stock indices. The incredible phenomenon of signaling a downtrend by virtue of lower volume was an incredible tool we tried to convey to our readers daily. The very fact that the down trend was a deterrent to entry, even in the direction of the trend, tends to boggle the mind. But now, with uncertainty compounded by other exogenous factors like the Chinese market weakness and other economic events.

The S&P dropped yesterday by an additional 2.09% and binary options traders simply were unable to sit idly by. The incredible drop was just too much for many though but volume just kept heading higher and in fact reached its highest level in over 1.5 months. The DOW, down 1.62% on the day, was also very strong in terms of volume with binary options traders getting in on the action early and with fury. The volume was robust and reached a record for the year of 2014 with binary options.

From an economic standpoint, this dramatic drop may only spell out to a minor correction in the grand scheme of things. But in short term analysis, it’s a massive move that drew attention from every corner of the trading world. So the day ahead may work out to be rather anticlimactic for those edging up to the market in hopes of more fireworks.

NASDAQ with Binary Options 11-4-2014

We believe that the best course of action is actually to monitor the NASDAQ stock index which fell a whopping 3.1% yesterday. The drop was simply huge and we expect the market to regroup a bit today. It just doesn’t seem logical to expect a further drop for the index and as such, binary options traders will do well to take advantage if the index breaks back higher towards 4050. The level, which marks the low from earlier in the week, was broken only to recover. Today, binary options traders can take down options on a break of the level. However, we admit, we are still of the belief that the index will actually recover and will completely be ignored by technical traders for the time being.

If the break level is tested, then surely reversal strategies will come into play and binary traders can take up options on each test of the level but a break is by far a more desirable outcome as the risk levels of any trading below this support will increase profitability by a very wide margin.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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