Hello to all binary options fans! I have an interesting MACD binary options strategy for you. 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.
Contents
Setting up the IQ Option chart for MACD binary options strategy
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 MACD binary options strategy
The MACD binary options 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 with MACD and Parabolic SAR
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 with MACD and Parabolic SAR
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.
Which indicator works best with MACD?
Our MACD binary options strategy today uses MACD in combination with Parabolic SAR. This interesting combination works well with binary options, where your role is only to determine the direction of the price over the next 5 minutes. This double signal from the 2 indicators contributes positively to the effectiveness of the strategy.
If you do not trade binary options but want to combine MACD with some indicator in your normal trading, I recommend you attach the Bollinger Band to your chart. This will give you additional information about volatility. In this combination, the trading signals can be the colour changes of the MACD histogram if they appear when the price reaches the upper or lower Bollinger Band line.
What is the best strategy in binary option?
There is no such thing as the best strategy for binary options. In general, the performance of a strategy cannot be considered in a vacuum. A strategy is tested on a specific asset, a specific time frame and a specific time period. Then different strategies can be compared on the same data. The assessment must also have some criteria. In the case of binary options, what matters is effectiveness. Since the payout rate at IQ Option is usually 80-90%, it is worthwhile to have a strategy which is at least 60-65% efficient.
After all, the final account is all about making money. Today's MACD binary options strategy has great potential. If properly rehearsed and applied to liquid assets such as EURUSD it can make for profitable trading.
Summary
The strategy based on the MACD and the Parabolic SAR indicators brings a pretty high win rate. Apply the classical capital management method and remember to set the expiration time to 5 minutes.
You should always be well prepared when beginning the trading session. Analyse the market, and follow the economic calendar so you know what is going on in the world and 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 about MACD options strategy presented today. You will find a comment section further down the site.
Wish you high payouts!