BINARY OPTION TRADING STRATEGY USING MACD INDICATOR - IQ OPTION

What is the MACD indicator?- iq option

MACD (Moving Average Convergence Divergence) is an indicator designed by Thomas Aspray to detect overbought and oversold points by looking at the relationship between short and long term moving averages.

MACD indicator consists of 3 lines, namely:

• Signal Line

• MACD Line

• MACD Hiatogram

What is the MACD Indicator function?

1. To identify stock prices

2. Knowing the reversal of the trend / reversal will occur

3. Detect momentum

4. Identify oversold and overbought

Here's how to read the signals from the MACD indicator for trading analysis - iq option

• MACD Line and Signal Line

• MACD to the Center Line

1. MACD Line and Signal Line

• MACD Line is Blue

• Red Signal Line

The way to do the analysis is we wait for the MACD line (blue) to cut the Signal Line (red).

When this happens the MACD indicatorindicates a reversal or reversal will occur. So we can use it to take open positions or as market entry points.

Some things that must be known in order to know the accuracy of the signal from MACD:

• The wider the distance from the MACD Line and the Signal Line before the crossing occurs, the         greater the reversal of the trend will occur, so that the signal shown is more accurate.

• The farther the distance of the crossing point of the Center Line, the more accurate the signal               shown.

Select the CALL / BUY option, when the MACD line movement (blue) intersects the SIGNAL (red) line from the bottom up.

Select the PUT / SELL option, when the MACD line movement (blue) intersects the SIGNAL (red) line from top to bottom.

2. MACD Line to CENTER line (zero)

For this method I will combine the MACD indicator with the EMA type Moving Average indicator.

We will use 2 Moving Average indicators with 12 periods and 16 periods.

1. Install the Moving Average indicator

2. Select the Moving EMA type with period 12, and setting it in Blue.

3. Install one more EMA type Moving Average indicator with a period of 16 and setting it in Red.

How to read signals MACD indicator - iq option

Select Options PUT / SELL, when:

• Period 12 EMA line crosses the EMAPeriod 16 line from top to bottom

• The MACD line (blue) intersects the Center line from top to bottom

• Open a position when both indicators (EMA and MACD) have crossed (line intersection)

Select CALL / BUY Options, when:

• Period 12 EMA line crosses the EMA Period 16 line from the bottom up

• The MACD line (blue) cuts the Center line from the bottom up

• Open a position when both indicators (EMA and MACD) have crossed (line intersection)

Now that's the trading strategy and how to read and use the MACD indicator. Hopefully it can be useful for you as a way to win in playing trading so as to produce profit consistently.

for example, how to use the MACD indicator.

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