The MACD and Bollinger Band Trading Strategy For Binary Options

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

The MACD and Bollinger Band Trading Strategy For Binary Options

Today I want to explain to you a strategy to work with binary options to 60 seconds that we are successfully testing which is based on the analysis of Japanese candles chart in which we have added the indicator MACD 12-26 with mobile media to 9 periods to which we have applied Bollinger bands. The strategy is revealed extremely effective both for inputs in Put that in Call. Now what we are going to analyze are the inputs in Put.

The image above speaks for itself. In the upper part you find the candles chart of the Pound (GBP) compared to the american dollar (USD) and below the indicators of the MACD (continuous blue line) with the relative mobile media (dashed blue line) and the Bollinger bands that draw a sort of channel. Our strategy is that to enter with an option PUT (that is in short) when the MACD crosses the middle line from top to bottom in the proximity of the upper part of the Bollinger band.

Just to let you observe the power of this signal I want to show to you an image of a continuous sequence of this type of signal that provided us with continuous successes.

Advice:

  • Register you to 24option hence to open your DEMO account.
  • Made the minimum payment to open the account.
  • Ask immediately a demo account on which you can make all your tests.
  • Once you learn the right strategy – you begin to operate with real money.

From this strategy is born an observation which led us to another strategy on the binary options to 60 seconds: strategy of the cusps of the MACD.

How to Use MACD Indicator to Trade Stock & Binary Options

MACD (usually pronounced Mac-Dee) stands for Moving Average Convergence Divergence.

The MACD is the difference between the value of the 12 period EMA (exponential moving average) and the 26 period EMA of the asset price.

In short, the MACD indicator gives the short to medium term trend of the price action. A positive MACD value indicates upward price trend while a negative MACD value indicates a downward price trend.

A 9 period EMA of the MACD is superimposed on top as a Signal Line. In other words, the Signal Line is just a smoothed out, less choppy version of the MACD line.

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

There is also a histogram which measures the difference between the MACD line and the signal line. The histogram can help to assess the velocity of the upward or downward movement.

Buy & Sell Signals

Crossover Signals

Buy signal is generated when the MACD line crosses above the signal line.

Conversely, a sell signal is generated when the MACD line crosses below the signal line.

MACD Divergence Strategy

Another strategy often employed by traders using the MACD to find trading opportunities is the MACD divergence strategy.

When the MACD diverges from the price action, it can signal the end of a trend.

Bearish Divergence

When the price is on an uptrend but the MACD is on a downtrend, it signals a bearish divergence, indicating that the market may soon be turning bearish.

Bullish Divergence

When the price is on a downtrend but the MACD is on an uptrend, it signals a bullish divergence, indicating that the market may soon be turning bullish.

Continue Reading.

RSI (Relative Strength Index) Indicator Explained

The RSI or Relative Strength Index indicator is bounded momentum based technical indicator that attempts to predict a change in momentum. . [Read on. ]

MACD Indicator Explained

MACD (usually pronounced Mac-Dee) stands for Moving Average Convergence Divergence. The MACD indicator gives the short to medium term trend of the price action. [Read on. ]

Bollinger Bands Explained

The bollinger bands are adaptive trading bands that reflect changes in volatility and provide a better view of the true extent of the price action. [Read on. ]

Parabolic SAR Explained

The Parabolic SAR indicator (or PSAR) is designed to calculate the point in time when there emerges a better than average probability of a trend switching directions. [Read on. ]

ADX Indicator Explained

The ADX, or Average Directional Index measures the strength of a trend and can be useful to determine whether an asset is currently in a trending market or a ranging market. [Read on. ]

73# MACD Binary Strategy

MACD Binary System

Submit by freddyfx 14/08/2020

MACD Binary Options Strategy is an trend momentum system, It’s based on the double MACD in the sub window below the chart.

Markets: Stocks, Indicies, Metals, Forex. This binary strategy works good on the Indicies ( S&P 500, DAX, FTSE, ).

MACD Binary System il also good as trading system for to trade.

Time Frame 30 min or higher ( best 4H).

Expires Time 3 bars after. (90 min, 180 min, 720 min, 3 daily).

Technical financial indiicators:

Exponential moving average ( 6),

Exponential moving average ( 13),

MACD (12,26,1) , with MACD (5,15,1).

MACD ( 5, 15, 1) crosses upward MACD ( 12,26,1 );

MACD ( 5, 15, 1) crosses downward MACD ( 12,26,1 );

Double MACD Trading System

The same conditions for entry trade.

Exit position options:

when MACD (5, 15, 1,) crosses in opposite direction MACD (12,26,1);

when exponential moving average crosses in opposite direction;

Best Binary Options Brokers 2020:
  • BINARIUM
    BINARIUM

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:

  • BINOMO
    BINOMO

    2nd place in the ranking!

Like this post? Please share to your friends:
All About Binary Options Trading
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: