Читать книгу Binary Trading - John Piper - Страница 48

There are three main classifications of market action. The market can either:

1 go up

2 go down, or

3 go sideways

There are times when it is likely that the market will do something but we do not know what. For example, if a market comes down to a level from which it has previously rallied strongly (such a level is known as support) a number of traders will be looking for another strong rally. But these traders know that if support breaks the market may fall sharply.

In such a situation the obvious trade may be to buy the market at support. This could be done as in the example set out in the following table (Table 3.3) and if we get the direction right that is fine.

But what if support breaks?

In the table we contrast the behaviour of a Tunnel with a more conventional up bet.

For the remainder of this section I am going to refer to these bets as Tunnels and they will go to 100 if the underlying market stays within the designated range.