- 3 weeks ago I decided to seriously work on binary options. Strictly speaking, this article - the result of this experience. At the beginning I started to learn how to better predict the behavior of prices in the short intervals, such as 1 minute. And what other traders are using to do this.
- Currently, there are many different automated technical approaches (technical indicators) to obtain the correct forecast for binary options. The most frequently used classical configuration for their application. At the same time the technical indicators are not able to properly respond to the market situation, and as a result, the trader receives an incorrect forecast.
- Some days I experimented with the settings of the popular technical indicator MACD. This trading approach tested not for a long time and was able to bring 284% of the income for one of the trading week. Now let us consider in detail how to use «MACD» trading techniques.
How to configure technical indicator MACD?
- I began my experiments in Dukascopy binary options platform. Because it included a set of indicator in the trading software, so you can easily carry out its installation on the chart of the financial instrument.
- When using the default settings MACD technical indicator shows the current situation on the market, and the resulting use it to forecast with much delayed. This situation leads to the loss of funds from the invest account. And when the default settings are changed, are more long-lasting movement forecasts quotation of traded asset, thereby increasing the profitability of trading. After many of searches I create a technical indicator on the chart of the financial asset with the following parameters:
- When I change the period of trade and signal periods of the oscillator lines, then definitely we do not get the wrong prediction for binary options for short-term price fluctuations. Over a long period of technical indicator shows us properly to the point of reversal of the trend, as well as on the duration and strength of the trend movement. Thus, we provide optional trading on a distinct market trend.
- The technical indicator shows us the birth of the uptrend line through the intersection of the oscillator in the upward direction and divergence of these lines together. When an intersection of lines, need UP position to carry out, moreover, with a 1-3-minute period of the transaction:
- The technical indicator shows us the birth of the downtrend line through the intersection of the oscillator in the lower direction and divergence of these lines together. When an intersection of lines, you need to quickly perform the DOWN position, with a 1-3-minute period of the transaction:
- As a result, we got a very powerful forecasting tool, producing up to 80-85% profitable trading signals. Important, enter into trading positions expressed at the time of the trade signal. As confirmation of the price reversal is necessary to apply the technical indicator MACD histogram indicators. When to the direction of the trend changes, technical indicator columns change the direction of its construction in relation to the zero level.
- With regard to capital management, then at the conclusion of each transaction using 5-7% of the total trading account size. As a result, 284% gain for the week. I continue the test further to collect more statistics.
Regardles, and good trades.