Posts Tagged ‘MACD’


MACD and 21 Moving Average COMBO STRATEGY!!

Sunday, August 9th, 2015

Tuesday, August 9th, 2015 by Ashraf Moos 

Mikes_Binary_Options_Signals (1)

What kind of insight do we get by setting up the MACD and 21 Moving Average strategy? Instructions:

1) Trade short-term Reversals & Into Momentum.
2) The 21 MA gives us the momentum ‘price bursts’through and breaks with the previous structure.
3) The MACD HISTOGRAM confirms the move with momentum building towards the right side of the trade.
4) The MACD also invalidates 21 MA signals when the momentum is non existent so if we have 21 MA signals but the confirmation of the MACD is not there we do not enter a trade, as there is no momentum in the direction.

Below are the rules for Put and Call options based on the MACD and 21 Moving Average strategy:
Rules for Call Options

1.Price must be traded below the 21 MA, break above and close above it.

2.The MACD must turn positive to validate momentum to the upside

3. Expiry Times:

M1 = 5 MIN OPTIONS
M5 = 20-30 MIN OPTIONS
M15 = 45 – HOUR OPTIONS

 

See the setup below for a Call Option:

macd1

Rules for Put Options

1. Price must be traded above the 21 MA , break below and close below.

2. The MACD must turn negative.

3. Expiry times will be the same as explained for the CALL options.

Please use a Free Demo Account when testing my strategies please, This combination is very powerful when used correctly and also very simple to implement.

There are only two rules so please follow them correctly. FOR EXAMPLE: If the candle breaks 21 MA down and MACD is coming from the top..you might think to yourself, well it’s probably getting ready to turn negative but it doesn’t and you have entered a bad signal. ALWAYS WAIT FOR MACD CONFIRMATION.

TRADE ONLY DURING THE MOST LIQUID TIME IE: LONDON/NY SESSIONS.

TRY AND STICK TO THE MAJOR PAIRS SUCH AS EUR/USD,GBP/USD,USD/JPY,USD/CAD,USD/CHF AND AUD/USD. I HOPE YOU FIND SUCCESS USING THIS STRATEGY. NEXT UP ICHIMOKU!!!!! and then will focus on video lessons for the 4 strategies Ive given you :)))) happy trading peeps!!

Join me and other traders at Mike’s Signals Group on Facebook and don’t forget to share your feedback below.

The Gold Strategy for Binary Options!

Saturday, August 2nd, 2014

Saturday, August 2nd, 2014 by Michael Freeman

Gold is one of the underlying assets traded in the binary options market. Many Gold retail traders and shifting to binary options due to high cost of trading gold offline. The capital requirement is often in excess of $10,000 in the retail gold trading world while Binary options allows traders to initiate trades with less capital and a chance to get higher returns on shorter time frames, as you can trade $25 and with some brokers as low as $5 on a Gold option on time frames ranging from 30 seconds to 30 days.

In my videos and articles I always emphasize the important of focusing on one or two underlying assets when trading binary options and it’s the ideal approach while trading the Gold option due to the straight forward analysis and easy to use indicators that are required in order to evaluate the future short-term price movements of the Gold option. In  fact, some traders including myself are trading gold multiple  times every day, with my own signals group I have days where most of the signals I send to  my subscribers were purely Gold Call trades and in my luckiest days I managed to pull  %90-%100 ITM just by riding a Gold trend for the entire trading session!

Today I really want to break down the gold analysis for you guys,  so all of you  will be at the position  to  trade gold using a solid combination of fundamental and technical  analysis so keep reading…

goldrush

What makes gold tick literally?

Traders love gold because it is a safe-haven financial instrument which they can purchase in periods of uncertainty. As at late 2011, there was a major uncertainly in the market and the the price of gold shifted in an upward direction, this trend lasted for days at a time and continued for months. Traders who were lucky enough to  spot these amazing trends, managed to pull thousands and hundred of thousands of dollars by riding the Gold trends with high trade amounts.

In order to understand Gold you have to look at the gradual increase in value over the years.. it’s one of the most stable long-term ‘uptrend assets’.  in 2005 the price of gold was $513 .. and by 2010 the price almost tripled.. in 1970 the price was only $37! The increase in the value of Gold is mainly affected by scarcity, growing demand and when things are uncertain and people  rush  to buy gold. Scarcity and demand increase the price of gold over time, however ‘Uncertainty’ carries the short term affect we’re looking for as day traders.

The key  to understanding GOLD is Uncertainty!

So if the ability to identify uncertainty is the key to understanding why Gold tends to go into a solid uptrend, what type of market indicators should we work with in order to trace down the ideal moments to enter call trades? and to remind you, the Gold uptrends are usually a matter of days, it can escalate to weeks but for us binary options traders, we are looking for the weekly type trends, allowing us  to enter multiple daily call trades. I will also go over a technical analysis indicator you can use to verify your prediction in the next section on this article but first…Uncertainty can be triggered by one of the following:   Market Indicators for Gold 1) Decline of the US dollar, Gold and the US dollar move inversely in value, forming a negative correlation. When the dollar goes down, the price of gold goes up. 2) When the Feds lower interest rates in hopes of promoting trade between banks, the value of the dollar goes down and the value of gold goes up. 3) Look for major events relating to the US economy..  with the growing deficit you can be sure that Gold is heading towards a smooth and long lasting uptrend.

The way things are looking with growing world-wide instability and as long as the US economy keeps heading in the direction it is going, at least for awhile, then we will almost surely see gold hit an all time high! So now that we all agree that the focus with Gold should be on identifying Up Trends..

Technical Analysis – Indicator for Gold  There are lot’s  of different indicators for short term analysis but in this case you’re looking for an indicator that can reaffirm a positive uptrend momentum and alert you incase of a potential reversal, which is why the MACD indicator is ideal. Now incase you are not familiar with the MACD indicator and how to set it up your free charts, I included an overview video provided by Investopedia.com on the MACD so check it out .

Complete list of free strategies and technical analysis indicators on the BinaryoptionsChannel.com

MACD Explained by Investopedia.com – Watch this short video!

 
 How to setup the MACD on Free Online Charts? It’s very simple. Investing.com offers professional live charts for all binary options underlying assets with an option to add your preferred indicator on the charts. Checkout the following snapshot of how to select the MACD indicator from the drop down menu on investing.com. investingcharts

Investing.com is offered free and you can set the charts for anywhere from 60 seconds and one month. If you’re planning to test this strategy or any other binary options strategies I recommend using a free demo account. If you are interested to participate in my signals group and follow my gold signals every day, Monday until Friday, you can signup on the signals group page and for more information on binary options strategies make sure to subscriber to the binary options blog!!

Top Recommended Automated Gold Trading Software!

GOLD Digger

If you have any binary options related questions you are always welcome to email me directly at tradingbinaryonline@gmail.com Thank you for taking the time to read this article! Cheers! Mike

Binary Options Trading Indicators and Tools

Sunday, July 14th, 2013

Sunday, July 14th, 2013 by James Franklen

 

Binary options trading platform is constantly improving with the addition of new tools and indicators. Apart from the regular tools and indicators, that we often experience both in Forex and options trading, new inventions have been made to bring more advancement in options trading.

When we talk about binary options trading, we see some custom tools, including MACD, Relative Strength index and stochastic indicator. These indicators also go along with MetaTrader 4 platforms. Therefore, it is advised to be careful about the selection of trade type while using these tools for assessing the assets. Below is the list of some common indicators that can be used along with the trade type suitable for the investors. The careful use of these mentioned binary options indicators results in big profit for the investor.

Binary Options Indicators and Tools 

Bollinger Band: Bollinger bands are well known for their effective use in binary options, especially for creating purchasing and selling signals. They help in formulating quality decisions by allowing the trader to compare price movements with the alerts generated by other technical indicators. They function broadly when interconnect with the reliable overbought (or oversold) technical indicator. Bollinger band performs well with most binary options types, including Range option, Touch option and the basic Call/ Put option.

Stockhastic oscillator: Stockhastic oscillator is a technical momentum indicator which compares the security’s closing price with its price range over a period of time. It is used when an assets is caught in a range bound market. It is handy when used along with an overbought or oversold indicator (which is joined with Bollinger band). The indicator has got an excellent standing over the years for indicating the price reversals. The tool is also very affective in finding new entry and exit points, if the price follows a nice pattern. One can achieve the better trading results by installing the stochastic oscillator on trading charts by utilizing the daily time frame or higher.

Relative Strength index: Relative Strength index (RSI) is used to measure the speed and change of price movement. It is one of the basic indicator that new traders find, when they search for technical analysis. Revealing the strength of an ongoing trend makes the indicator perfect for entering positions, specified as trade or no-trade types order.

Parabolic SAR: Parabolic SAR (Parabolic Stop-and-Reverse) is used to find the suitable entry and exit points. Although the indicator picks up the alerts little late but its signals can be improved, if combined properly with other indicators like ADX. The indicator is perfect for those who look for reversal points in the market.

MACD: Moving Average Convergence Divergence (MACD) indicator shows the relationship between two moving averages of prices. The indicator is handy in finding the price divergence. To achieve the best results, the indicator should be used in conjunction with call or put option, with a long expiry time.

Pivot Calculator:  Pivot Calculator is widely used to determine alerts for the option’s range (made up of call options, put options, and touch and no touch options

Watch the Pivot Points  Strategy Video on Youtube and learn more about the Relative Strength Index!