The Best MACD Entries

Strategy Review: MACD is one of my favorite indicators for trading binary options . It can be used in a variety of ways to determine trend, reversals and trigger trading signals. It can also be used in any time frame, making it a very useful tool for trading long term monthly binary options all the way down through the list of expiry s to !" seconds.

The Best Of MACD Entries What am I Ta !ing A"#$t% It is a simple strategy for short term traders and utilizes MACD in a way that I can fully approve. Some of the good points about this strategy is that it is trend following, uses more than one indicator and is incredibly useful for binary options trading. ot only that, because of the way MACD wor!s and its applicability to multiple time frames this techni"ues can be used in longer time frames. What Is The Best Of MACD Entries

#e use the $ min charts, two moving averages and two MACD%s. &or the charts I suggest candles because that%s the best way in my opinion. 'he two moving averages specified are $( bar simple moving average and )(( bar simple moving average. 'he two MACD%s are both standard )*+*,+- but one is histogram and the other is oscillator style. 'ogether these indicators .oin to create signals with movements that last anywhere from *( minutes to several hours.

&#w Best Of MACD Entries W#r!s 'he set up is pretty simple and since it is on the $ minute charts signals come pretty regularly. 'he two moving averages are used to determine trend, trade type and as part of the signal. 'rend is determined by the positions of the two SMA%s. #hen the short term $( bar SMA is above the long term )(( bar SMA the trend is bullish. #hen the short term SMA is below the long term SMA the trend is bearish. #ith that in mind traders are instructed to only trade according to this trend. Calls when it is bullish, puts when it is bearish. A signal is generated when MACD is overbought or oversold and ma!es a crossover at the same time that prices have retreated past the SMA%s. #hat this means is in a downtrend you will wait for prices to correct above the moving averages. #hen that happens a signal will be generated when the MACD oscillator is in the overbought side and ma!es a bearish crossover. 'his crossover and signal can be predicted with the MACD histogram. If you loo! in the e/ample provided the MACD histogram is ma!ing a nice divergence and foreshadowing the lower high and subse"uent buy signal generated by this system.

Why This System D#es '#t S$(! #here to begin0. 'his system does not suc! because it is an outstanding e/ample and application of one of my favorite indicators. I won%t be shy in saying that I put a lot of stoc! in the ol% )*+*,+-. 'his strategy not only uses my favorite indicators but also incorporates many of the features of a good strategy. 'his strategy, as laid out, does not incorporate multiple time frame analysis but I thin! it would only benefit from it. #hat it does have is a combination of well worn, trusted and often over loo!ed indicators that incorporate trend and momentum to generate handy signals for traders of short duration binary options li!e dailies, hourlies or shorter.

My )ast W#r*s #n the Best Of MACD Entries I don%t !now if this is the best MACD entry or not but I can say that is a damned good one. I recommend this strategy to newbies, oldies, e/perienced, ine/perienced, fore/, commodity, stoc!, inde/ and any other !ind of binary options traders there are. I don%t !now how else to say but that way. I, and we here, don%t .ust hand out praise. 'here are a lot of things that totally suc! in the binary options world but this is not one of them. 'a!e hold of this strategy, love it, nurture it and I thin! in the end you will be net positive.