Hi, I’d like to get your views on why this happens so often. The futures for Oil were below 93.50 on 3-22 until right before expiration of daily binary and then skyrocketed about 10 minutes before expiration. What are your takes on this? MarketMaker play? how can traders protect themselves from such spikes in the end? Take profits early and close the position early? Do you think this happens more at the end of week instead of everyday? Probably too many questions for one post, but you get the idea. Regards.
Oil below 93.50 on 3-22 until right before expiration of daily binary
darrell
#2
Market makers are not interested in direction they are simply interested in filling orders and laying off risk. Market Movers do move the market to fill orders at one level and dump them at another.
Short covering is common before a session close even more common on a friday and even more common on an expiration friday.
The market goes down as the buyers above the market have dried up…it goes up as the sellers below the market have dried up.
Watch volume as usually you will see a spike (a dump) right before the market reverses as they have just gotten out of their positions.
The daily binary expires when the pit closes. YOu want to be aware of pit hours even in todays electronic age it has a lot to do with the markets movement.
use Nadex spreads market spikes don’t hurt that way.
Don’t hold binaries that you entered for less than $50 risk till end of day have a take profit plan and stick to it. See Getting the Edge in binaries under bonus webinars for more information on this. Leaving binaries on till expiration and not having a take profit plan on binaries are the biggest mistakes binary traders make.
To see how often anything happens simply look at historical charts.