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By: Adam Stone
December 26th 2013 7:07am GMT, London UK

Binary options traders are probably ready to just start the new year of trading and we can’t blame them. Looking at the dearth of action in the coming day, many can assume that it’s just better to sit and wait a few days till the new year. Well, guess what? This would be a critical mistake considering the real underlying trends in the market. With the way the markets are behaving, despite low liquidity levels, it would be a missed opportunity to resign yourself to the thought that the market will be there for you in January.Take for example the US stock markets which continue to record new highs in nearly every session.

The Dow Jones, now at 16357 as of the Christmas Eve shortened trading session, is one to keep on your watch list again today. As opposed to the S&P, which is our perennial trading favorite due to its incredibly accurate breaks, the Dow Jones has been on the same trend but with a larger number of false breaks. This has caused us to be more reluctant to provide break or reversal strategies for binary options traders. It’s simply a risk/reward issue. But over the last few weeks, as we’ve watched the development of the index’s break patterns, it seems like we can again put this index in the forefront. The statistics are very positive and allow us to state with a great deal of certainty that another break to the upside will allow binary options traders to take Up options with low risk. Of course, S&P traders know this behavior very well already, the Dow wasn’t able to give this type of signal based trading of late. So today, binary options traders will look for yet another break above the previous high to get in on the action.


Notice in the graph above how in each of the last sessions the DJ index has broken above the resistance and simply hasn’t headed back down. This indicates a very positive trading behavior you should seek in every asset you trade. It doesn’t matter for what time frame, this is the pattern you need to seek. The reason is that with forex trading, the actual move above the break is what’s key. The fact that the market can go back down after a break is of little relevance to forex or index traders. But for binary options traders, it’s everything.

As a general rule, binary options traders need to be more sensitive to this type of behavior and it will certainly keep you out of harm’s way down the line. Just know how to play by the rules and stick to what can and should work for binary options strategies of all types and you will keep yourself making profits for months and years to come.

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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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