How to Setup
Please setup expiration time on 5 minutes.
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Please setup chart on candlestics !
Please setup candlestics period on 5 minutes!
Please go to indicators list and select MACD
Please set MACD with fast period of 12, slow period of 26 and signal period of 9.
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Moving Average Convergence Divergence MACD
The MACD is one of the simplest momentum indicators. It was developed by Gerald Appel. This indicator is used to identify a market trend by analyzing moving averages. It has proven effective reveling direction, duration, and strength or market trend and asset price movement.
What is Moving Average Convergence Divergence? (MACD)
The MACD is a trend following momentum indicator calculated using the relationship of the prices of two moving average. The MACD is obtained by subtracting the exponential moving average for the 12 periods minus the exponential moving average for the 26 periods. Additionally to the MACD, the differences between moving average is obtained for the 9 periods and it is used as a signal line to call for market action selling or buying the evaluated asset.
Breaking Down Moving Average Convergence Divergence
In a moving average, converge divergence you will see either three figures or a graphical representation of three lines over a price chart.
a) The first numbers represent the faster moving average. This is usually the exponential moving average for the 12 periods
b) The second numbers represent the slower moving average. This is usually the exponential moving average for the 26 periods
c) The third numbers represent differences between the moving averages of the fast and slow. This is usually calculated for the 9 periods and this line is called the signal line
Divergence is when the lines are growing apart without crossing them over, this signals the end of the current market trend
Convergences are lines crossover this signs a market trend.
Bullish crossover is when the MACD line rises above the signal line, this indicates that the price of the asset will increase, therefore, it is a buying signal
Bearish crossover is when the MACD line falls below the signal line, this indicates that the price of the asset will decrease, therefore, it is a selling signal
Histogram is the graphical representation of the differences between fast and slow moving averages on a vertical graph bars over a price chart.
a) When the moving averages get closer to each other, the bars get smaller or thinner this is called convergence. The faster moving average is getting closer to the slower moving average.
b) When the moving average are moving apart or separating, the bars, as well as the histogram, get bigger and this is called divergence
Using MACD for Binary Options trading
The MACD represents the different moving averages and frequently there is a small gap or time lag, however, this indicator is one of the most widely used for traders, and once you learn to fully understand it is accurate, easy to use and reliable.
MACD shows momentum and market trend simultaneously in one indicator.
MACD is not ideal to identify overbought or oversold conditions
MACD Indicator 5 minutes Binary Options Strategy as Trading Pattern
When the price asset moving UNDER MACD resistance line, and BLUE line crosses from ORANGE line from below, that means is clear signal to invest CALL.
See some examples of CALL Options:
Open PUT Option
When the price of asset moving UPPER MACD resistance line, and BLUE line crosses ORANGE line from the top, its clear signal to open PUT possition.
See some examples of PUT Options
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