Simple MACD Binary Options Trading Strategy

The binary options trading strategy based on the MACD-dot.ex4 indicator is a very simple strategy. The indicator performs all the analysis and shows the signal. All the trader is required to do is to know how to trade the signal.

Chart Setup

  • MetaTrader4 Indicators: MACD-dot.ex4 indicator (default setting), MACD_OsMA.ex4
  • Preferred Time Frame(s):  1 minute, 5 minute, 15 minutes, 1 hour.
  • Recommended Trading Sessions: Any time. Depends on when the indicator signal appears on the chart.
  • Traded assets: Any.

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Download the Simple MACD Binary Options Trading Strategy

Trading Examples (Click the image for full size view)

simple-MACD-binary-options-trading-strategy

Strategy

The MACD-dot.ex4 indicator paints a blue dot below a candle for a bullish signal, and a red dot below the candle for a bearish signal. Confirmation is obtained from the MACD_OsMA indicator in the form of both a cross of the OsMA lines and the cross of the MACD bars from one side of the zero line to the other.

CALL ENTRY RULES

A CALL trade is setup when the following occurs:

  • A blue dot appears below the candle.
  • OsMA lines cross in oversold territory.
  • MACD histogram bars cross from negative to positive.

Expiry for CALL Trade

Set the expiry time of the trade to close after 4 candles. For this M15 chart example, this corresponds to 1 hour.

Early Exit Strategy

You can also close the trade early when the trade is in profit for a smaller payout.

PUT ENTRY RULES

A PUT trade is setup when the following occurs:

  • A red dot appears above the candle.
  • OsMA lines cross in overbought territory.
  • MACD histogram bars cross from positive to negative.

Expiry for PUT Trade

Set the expiry time of the trade to close after 4 candles. For this M15 chart example, this corresponds to 1 hour.

Early Exit Strategy

You can also close the trade early when the trade is in profit for a smaller payout.

The M15 chart above displays the trade setups for both the Call and Put trades. The following must be emphasized:

  1. The dot which signifies trade entry will appear when the entry candle is already open and not as the candle is about to open. The trade is set as soon as the dot appears.
  2. The trade must last four candles to give enough room for profitable performance.
  3. Expiry is at the closing price of the 4th candle.

Download

Download the Simple MACD Binary Options Trading Strategy

About The Trading Indicators

Study the chart properly to see the various points at which the MACD-dot.ex4 indicator presents trade opportunities. The indicator can actually present several opportunities on one asset and in a single day, allowing for good profits.

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