Binary Selection Trading Strategy Using Macd Indicator - Iq Option

What is the MACD indicator?- iq option

MACD (Moving Average Convergence Divergence) is an indicator designed past times Thomas Aspray to uncovering overbought as well as oversold points past times looking at the human relationship betwixt brusk as well as long term moving averages.

MACD indicator consists of three lines, namely:

• Signal Line

• MACD Line

• MACD Hiatogram

What is the MACD Indicator function?

1. To seat stock prices

2. Knowing the reversal of the tendency / reversal volition occur

3. Detect momentum

4. Identify oversold as well as overbought

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

• MACD Line as well as Signal Line

• MACD to the Center Line

1. MACD Line as well as Signal Line

• MACD Line is Blue

• Red Signal Line

The means to gain the analysis is nosotros hold off for the MACD line (blue) to cutting the Signal Line (red).

When this happens the MACD indicator indicates a reversal or reversal volition occur. So nosotros tin utilisation it to accept opened upwardly positions or every bit marketplace entry points.

Some things that must travel known inwards lodge to know the accuracy of the signal from MACD:

• The wider the distance from the MACD Line as well as the Signal Line earlier the crossing occurs, the         greater the reversal of the tendency volition occur, then that the signal shown is to a greater extent than accurate.

• The further the distance of the crossing dot of the Center Line, the to a greater extent than accurate the signal               shown.

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

Select the PUT / SELL option, when the MACD work drive (blue) intersects the SIGNAL (red) work from give to bottom.

2. MACD Line to CENTER work (zero)

For this method I volition combine the MACD indicator amongst the EMA type Moving Average indicator.

We volition utilisation two Moving Average indicators amongst 12 periods as well as xvi periods.

1. Install the Moving Average indicator

2. Select the Moving EMA type amongst menstruum 12, as well as setting it inwards Blue.

3. Install i to a greater extent than EMA type Moving Average indicator amongst a menstruum of xvi as well as setting it inwards Red.

How to read signals MACD indicator - iq option

Select Options PUT / SELL, when:

• Period 12 EMA work crosses the EMA Period xvi work from give to bottom

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

• Open a seat when both indicators (EMA as well as MACD) get got crossed (line intersection)

Select CALL / BUY Options, when:

• Period 12 EMA work crosses the EMA Period xvi work from the bottom up

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

• Open a seat when both indicators (EMA as well as MACD) get got crossed (line intersection)

Now that's the trading strategy as well as how to read as well as utilisation the MACD indicator. Hopefully it tin travel useful for yous every bit a means to win inwards playing trading then every bit to create net turn a profit consistently.

for example, how to utilisation the MACD indicator.