Trading long positions on IQ Option presents higher probability of getting winning trades. However, you must know the direction the markets are taking before you enter into a long trade. In this guide, I'll teach you how to use 3 different indicators to accurately predict a trend reversal. This will help you enter long winning trades on the IQ Option platform.
Create indicator template consisting of EMA, MACD and Parabolic SAR
Once you've logged into your trading account, you should first set up each indicator individually. Next, click on the “Added” feature on the indicators tab. This will show all indicators added. Click n the “Save indicator template” link at the bottom.
This allows you to use this set of 3 indicators in your future trades without having to set them up individually again.
Note that each indicator's settings should be adjusted to suit your trading strategy and preferences. For example, if you're trading 30 minute intervals, you can change the settings as follows: use EMA10 and MACD 12, 0.26 and 9.
On your trading chart, use 5 minute interval Japanese candles..
Trading using EMA, MACD and Parabolic SAR on IQ Option
This set of indicators works best when trading trend reversals. It's therefore important that you wait until you observe clear market fluctuations. The good thing is that, once the trend reversal occurs, all three indicators will signal it..
When to enter long buy position
The MACD green line must cross above the red line. At the same time, the charts have developed a bullish candle (green). The EMA10 cuts through the bullish candle and moves under the prices. Finally, the Parabolic SAR stops above the prices, breaks and starts moving under the prices.
When to enter long sell positions
Here, the green MACD line must cross under the red line. The chart develops a bearish candle which the EMA10 cuts across and starts moving above the prices. Finally, the Parabolic SAR stops and breaks under the prices. It then starts moving above the prices.
The MACD, EMA and Parabolic SAR set are a good way to identify when the trend is reversing and place long trades. Note that if you're using 5 minute interval candles, your trades should last at least 30 minutes if you're to increase probability of making winning trades.
Now that you've learned how to use this set of indicators, try them out on the IQ Option practice account. Share your results in the comments section below.
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