Binary Options Strategy: Long MACD on an online chart on a web platform. The ideal solution for a novice trader!
To generate income on binary options, many approaches and automated technical analyzers, the so-called indicators, have long been developed.
In practice, they are usually used with classic settings, but in this case, the indicators often do not respond quite adequately to the market situation, as a result of which they give the trader an incorrect forecast.
Strategy: Long MACD came to us by experimenting with the settings of the well-known MACD indicator, which many people say is the best indicator for options. This approach, during long testing, brought more than 200% of profit weekly. Therefore, now we will consider it in detail.
How to accurately predict where the price will go on binary options?
This requires fine tuning of the indicator!
The experiments were carried out with different MACD settings on the options trading platform. Of course, this can also be done using live chart, but in order not to be distracted by different tabs, it was decided to use the company's own web platform.
So, let's go directly to the strategy itself:
Before setting up the indicator, let's first explain why you need to change anything in its standard parameters at all?
If we leave the MACD indicator to its default settings, then it will simply show the current market situation of the asset, showing a belated forecast. Thus, a trader, trading on the basis of only his testimony, will simply often lose his money.
However, if the standard MACD parameters are slightly changed, then its forecasts will be longer in time, which means that they can be safely used for profitable trading.
Therefore, to begin with, we install this indicator on the quote chart, and set it up as follows:
By changing the periods of the oscillator lines and their signals, we thereby exclude the possibility of obtaining an erroneous forecast during short-term impulsive price fluctuations.
Thus, this indicator with a longer period will indicate to us as clearly as possible the points of future trend reversals, as well as its strength and duration of movement. So, for trading, we will use a clearly defined market trend.
MACD is probably one of the best options indicator that even a beginner can handle!
Signals by indicator
Option buy signals: CALL↑:
The indication of the indicator for the emergence of a growing trend will be the intersection of its lines upwards and their divergence from each other. It is at the moment when these lines crossed that it is necessary to conclude a contract with an UP forecast, setting an expiration of 2 minutes for it:
The indication of the indicator on the origin of a downtrend will be the intersection of its lines down and their divergence. It is at the moment when these lines crossed that it is necessary to conclude a contract with the DOWN forecast, setting an expiration of 2 minutes for it:
In this case, transactions must be concluded only after receiving a clearly expressed signal. And the confirmation of the price reversal will be the readings of the histogram of the MACD indicator.
When the direction of the trend movement changes, the columns of the MACD histogram will change the direction of their construction relative to the zero line.
Having opened trading platform and applying the MACD indicator with modified parameters on the chart, we actually get a universal tool for accurate forecasting of profitable signals!
Money management or money management on binary options
And although the “long MACD” strategy gives really accurate and stable signals, we recommend correctly calculating trading risks, that is, when concluding transactions, do not overestimate their volumes, but set the amount of each at the level of 3% of the amount of trading capital.
Trading signals for this strategy are generated very often, therefore, every day you can earn enough money to rapidly increase your trading capital.
If you test the system or just trade with a minimum deposit, like a broker FinMax, then contracts can be drawn up for the smallest amount.
It is these simple risk calculation conditions that make trading safer.