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  1. #1
    Rookie Member LondonGeezer's Avatar

    Is this a safe trade? !!!

    Please see the chart below.. it's a day chart on the Apple stock.. it shows it ended on Friday with a bearish engulfing candle.. would this be a safe enough entry for a 1-day trade do you think? I'm thinking Forex rather than binary with a TP of 140.22 but any advice would be really appreciated. Click image for larger version. 

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  2. #2
    Specialist Member Ingmar's Avatar
    Hi LondonGeezer,

    I'm not even close to being pro but this is a good exersise for my analysis.

    I would not take a PUT option there myself.

    On the daily chart you can see a channel has sort of formed. The upper TL has acted as support before and the latest day candle is pretty close. This might happen again. Also, stochastic is about to leave the oversold channel and indicates a coming uptrend. Equally, on lower timeframes stoch gives a (nearly) oversold signal. Last but not least there's signs of divergence to be found on stoch as well which would signal a coming reversal.

    Both 99 and 200 EMA show an uptrend and on the daily it could act as support. You'd be trading against the larger trend buying a put option which adds to the risk you take. On the lower timeframes however, you can see a bullish flag has formed and perhaps the start of a breakout that got cut short when the markets closed?

    So on the lower TF i would say yeah, it might drop further. And you'd be going with the smaller trend. But what goes down comes back up (during the same day). Therefore I would NOT take a day long expiry PUT.

    I hope you get some more reliable feedback from the pro's here as well :-)
    Last edited by Ingmar; 04-16-2017 at 10:51 PM.

  3. #3
    Legendry Member milos's Avatar
    Its binary options forum.

  4. #4
    Legendry Member Michael Hodges's Avatar
    yeah, that's not really a bearish engulfing pattern, those usually happen at a top, not near support, which is what it looks like Apple is trading on there. I wouldn't do it, but I'm not you and it's your decision.

  5. #5
    Legendry Member Okane's Avatar
    You should never jump into a trade only because "well there is that one candle..."
    You need more than just a candle type/formation. Watch the price action.

    I agree with Ingmar. The trend seems bullish and the support line and the trendline remain UNbroken see image:
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  6. #6
    Specialist Member Ingmar's Avatar
    Yay! Glad to see the pro's agreeing HAHA :-)

  7. #7
    Rookie Member LondonGeezer's Avatar
    Much appreciated advice guys. I've been studying a lot but it's clear I have a loooong way to go.. lol

  8. #8
    Specialist Member Ingmar's Avatar
    my pleasure. It was a good excersize for me as well :-)

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