Having a trading strategy is crucial for your success. You will come across plenty of the strategies but are they effective? It is a good idea to know them and check how they work for you. The strategy I am going to present to you today is based on two indicators which are the MACD and the Parabolic SAR. It is considered to be one of the most powerful trend trading strategies.
Setting up the IQ Option chart
Log in to your IQ Option account and choose the asset. Then, click on the indicators icon and search for the MACD (Moving Average Convergence Divergence). In order to be able to use this indicator for today's strategy, you will have to change its parameters. Set a fast period for 7, a slow period for 14 and a signal period for 5.
Then, repeat the procedure to add the Parabolic SAR to your chart. Leave its parameters as default.
Trading with the strategy that combines the MACD and the Parabolic SAR
The strategy allows you to catch the trend reversal or continuation point. Knowing when it might happen will help you to decide when to enter the trade.
Use 1-minute Japanese candlestick chart. You can hold the position open for 5 minutes.
Opening a short trade
The Parabolic SAR should be visible above the price bars. The MACD indicator should cross the middle 0 line from above. Now you can place a short order.
Opening a long trade
To open a long position you want quite the opposite situation on the chart to happen. The Parabolic SAR should appear below the candlesticks and the MACD should cross the 0 line from below.
The strategy based on the MACD and the Parabolic SAR indicators brings a pretty high win rate. Apply classical capital management method and remember to set the expiration time for 5 minutes.
You should always be well prepared when beginning the trading session. Analyse the market, follow the economic calendar so you know what is going on in the world what might affect the prices. Do not forget about risk management and emotion control.
IQ Option has a free demo account. Test today's strategy there and you will see it can turn out very profitable.
Once you are ready move to the real account to earn money. Share your opinion with us in the comments section. You will find it further down the site.
Wish you high payouts!
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