Posts Tagged ‘MACD Indicator’


Binary options Swing Strategy

Monday, August 24th, 2015

Monday, August 24th, 2015 by Ashraf Moos 

Welcome Traders, This is Ashraf I am one of the top traders at Mike’s Facebook group. Many traders in the group follow my strategies and I decided to keep posting content for Mike and his website visitors. Today I will go over my Binary Options Swing Strategy. First, this strategy is designed for hourly, 4 hours and end of day expiries. Do not use any of the tactics with short-term expiries and always test a new method or strategy using a free demo account as Michael Freeman suggests, especially if you are a beginner.

Disclaimer: This Strategy was first posted on Investoo.com and a few blogs but Ashraf gave it his own touch. I encourage you to watch his unique video on this topic that’s posted on my channel.

The goal of this Swing strategy and method is practice is to take advantage of the market price swings. We use this method of trading only during high volatility conditions as a prerequisite.

THE INDICATORS: For the most part, we’re going to use the Bollinger Bands in order to determine the market direction and condition with the default settings.

MACD with settings of 3,11,16. As you can see, we are using an aggressive setting for the MACD Indicator in order to evaluate when the momentum starts.

   SMA – Simple Moving Average is set at a period of 3 which will be our trigger!

 THE RULES AND CONDITIONS

CALL SETUP: Price breaks above the middle Bollinger Band. The 3 period SMA breaks above the middle band. The MACD turns positive.

PUT SETUP: Price must break the middle Bollinger Band downwards. The 3 period SMA breaks below the middle band. The MACD turns negative.

EXPIRY TIMES: Trading off the 15 minute chart = one hour expiry. Trading off the 1 hour chart = 4 hours to end of day expiry.

Watch my complete video on the Binary Options Swing Strategy for a complete illustration.

THE STRATEGY HAS AN ACCURACY OF UP TO 83% IF APPLIED CORRECTLY

I also encourage you to check out my article titled ‘PSAR and ADX Combo Strategy %80+ ITM!!‘. Let’s sum it up, Swing trading is widely covered and used by binary options and FX traders but many times they don’t get the setting and the combination of indicators right. After using my Swing method for a very long time I can testify that my setting for the MACD, Bollinger Bands and SMA can provide you with some amazing trading opportunities. I also encourage you to check out some of the previous articles I’ve written for Mike and videos on Mike’s Binary Options YouTube channel. If you have any questions you are welcome to comment below this article and I will respond and also below the video on YouTube. Good luck with your trading and again, remember to test every binary options strategy using a demo account before you trade using a real live account. If you are interested to get professional signals from the admins and top traders at Mike’s Facebook Signals Group, you need to join us!!! We’re doing amazing and generate many signals on a daily basis, free binary options educational sessions and live webinars. Good luck with your trading!

My Bullish MACD Strategy

Tuesday, August 5th, 2014

Tuesday, August 5th, 2014 by Michael Freeman

In this article I plan to explore the MACD, Moving Average Convergence Divergence indicator which goes hand in hand with my favorite binary options gold strategy. Professional Forex and Binary Options traders all agree that using a single indicator on it’s own is not a sufficient way to generate consistent winning trades. The use on an indicator, including the MACD must be combined with a strategy and ideally with fundamental analysis.

I know that many of you are not familiar with MACD and I want to break it down today and provide you an insight for how this powerful technical analysis can assist you with predicting an accelerating Bullish Trend, since MACD in definition is a ‘short-term trend following, momentum indicator! It shows us the connection between two moving averages and let me explain.

MACD has 3 components

1) MACD line = the difference between two moving averages, set by default on 12 day – 26 day EMA)
2) A signal line =  9 day EMA. Important: This is our Buy/Sell Trigger or in reference to binary options, our CALL Signal!
3) The Histograph = represents the difference between those two lines. so for example when the two lines meet the histogram is at zero.

macd-signalline

MACD Tutorial on YouTube – Recognizing a Bullish Signal on a 60 minute chart

How do we recognize a bullish signal?

1) When the MACD line crosses over the signal line, it signals us to buy (call trade). In essence, the forumula that’s behind this indicator calculates the increasing upward momentum, and it’s presented to us visually with the MACD line crossing over the signal line.. simple as that.

buysignal

2) another way to use MACD is with the centerline method where you’re basically observing the histogram and when it reaches ZERO you know that the MACD line is crossing over the Signal Line suggesting an accelerating bullish trend, signaling us of an opportunity to enter  call trade once the two lines intersect and the histogram at zero, as the MACD is about to climb above the signal line.

histogram

Watch my YouTube Video explaining how to trade using the MACD Indicator with reference to the Gold Option Strategy

The indicator is usually offered on all the free charting websites including on Investing.com  and you can set it on 5 minute candlestick charts or 1 hour, depending on your trading preferences. The MACD is an ideal indicator for short-term and works together with my favorite Gold Strategy for Binary Options which is bringing me a lot of success! If you have any questions you are welcome to email me at tradingbinaryonline@gmail.com or comment below this post.

Most Reliable 60 Seconds Strategy

Wednesday, May 7th, 2014

Wednesday, May 7th, 2014 by Tim Lanoue

I have seen a lot of interest in the original binary options 60 seconds strategy so I feel the need to keep feeding you guys more short-term trading strategies.  As you can guess from the title this is going to be a 60 second trading strategy and it is one I just recently came up with.  I have been testing it out lately and so far out of 750 trades I have had a 77% in-the-money, which is pretty good.  Below I will discuss everything that you need in order to use this strategy on your own.

Indicators Needed

What makes this strategy great for novice traders is all you need is one indicator, you don’t need a bunch of indicators that could potentially cloud up the charting solution.  The one indicator that we need is the MACD (moving average convergence divergence) indicator.  The main function of the MACD Indicator is to measure momentum that is associated with trends.  In the picture below you can see how we only place trades when we have short-term trends that developed momentum.

How To Apply the 60 Seconds Strategy

The signaling process with this strategy is very simple and only requires two steps.  The first step would be that we need our blue MACD line to touch or cross through our white MACD line, this is the signaling process.  In order to confirm this we make sure there is a candle that correlates with the direction of the blue line.  So if our blue MACD line crosses our white MACD line upward then we place a CALL trade if we have a bullish candle above it, and vice versa for PUT trades.

 

 

Recommended Time Frames, Expiry Times & Trading Hours

When watching the asset I like to have it on a one minute time frame since this is a binary options 60 second  strategy.  Recommended expiry times when using this strategy would be 30, 60 and 120 seconds, it works great all those expiry times.  In addition, when I am using this trading strategy I trade during the New York trading hours.

How To Change Settings on Indicators on freestockcharts.com

In order to change the settings of this indicator to the settings that I have on my chart you need to first add the indicator which can be found by add indicator.  Once you click that, scroll down until you see MACD and click on it.  In order to change the settings now you go to the exponential moving average and left click on it, select edit and change it to a period of 3.  Now go and left click on MACD in the box and click on edit.  Now change the short to 9 and the long to 20 and you are all set.  Changing indicator settings are relatively simple and will be something you will do often so it wouldn’t be a bad idea to get use to changing these settings and tweaking these strategies so they are perfect for you.

60seconds

As always traders, if you have any questions or comments please feel free to leave them below!

Difference between Binary Option Oscillator Indicators

Wednesday, March 26th, 2014

Wednesday, March 26th, 2014 by Tim Lanoue

There are a wide variety of technical indicators that are being applied into binary option strategies.  Many of them being moving averages, momentum indicators, lagging indicators and oscillator indicators.  Knowing the difference between oscillator oriented indicators can help you out in the long run when deciding what oscillator indicator to use in a binary options trading strategy.

Basics of Oscillator Indicators

It is important to understand that all indicators that exhibit oscillator type characteristics fluctuate either above or below a centerline and between values that dictate the current market conditions of the asset.  There are two types of oscillators, the first would be centerline oscillators and the second would be banded oscillators.

Centerline Oscillators

Centerline oscillators are the most commonly used oscillators when trading binary options.  Common indicators that are centerline oscillators would be the MACD (moving average convergence divergence) indicator and the ROC (rate of change) indicator.  The MACD indicator is known as a trend following type of indicator which makes it extremely useful when you are using trend trading strategies.  The main function of the ROC indicator is to measure the percentage of price change over a given period of time.  If the percentage represented is above the centerline then the asset is displaying a bullish change however if the percentage is below the centerline then the asset is displaying bearish characteristics.  Another function of centerline oscillators is that they can determine and show the relative strength of direction that is shown during the assets price action, this is why these type of indicators are particularly useful when trend trading.

Banded Oscillators

These type of oscillators are becoming more and more popular due to the fact that they can help traders predict whether or not the assets that they are watching are displaying extremes or not.  The main function of this type of oscillator is to predict whether or not the asset you are watching is overbought or oversold.  Knowing the market conditions of our targeted asset is a great advantage in determining whether or not a trade should be place or not.  A couple common type of banded oscillators would be the stochastic oscillator and the RSI (relative strength index) indicator.  Both of these indicators will show you whether or not the market conditions of the asset that you are watching are overbought, oversold, or neutral.  However, there is a band oscillator that does not reflect an assets market conditions and that would be the Commodity Channel Index (CCI) indicator.  This oscillator is unbounded meaning that it doesn’t reflect values that would show the current market condition of the asset but rather provide signals that there will be a continuation in the direction that the asset is heading.

bull

 Learn more about Binary Options Indicators

Technical oscillating indicators are a great tool to use when trading binary options.  Knowing the basics of these indicators is key to determining which oscillator indicator is right for you in your trading strategy.  If you have any questions please feel free to leave them below and thank you for your time.