How to trade options using only one MACD indicator?

This type of trading strategy is based on the use of only one basic indicator - MACD.

In general, it is used in many different systems, of which the most common way to find divergences.

However, this option is not the most suitable for beginner traders due to its complexity, so it is much more advisable to use a simple trading method, while not forgetting to filter the signal.

Key Features

- Extreme simplicity;
— Functioning at all time intervals and assets;
— The indicator does not draw, which can be seen by looking at the history;
- Mass of incoming signals.

Option UP should be purchased when:

1. Arrangement of columns - in the negative zone;
2. Histogram bars are above the moving average;
3. The previous candle closes, and on the new one you can buy an option for one candle.

Read also - Simple trending strategy on a live chart

Option WAY DOWN purchased under the following conditions:

1. The columns are in the positive zone;
3. Histogram bars are below the moving average;
4. A candle closes, and an option for one candle is bought on a new one.

Only two timeframes are involved in the trading process

• five-minute – expiration 5 minutes;
• half hour - expiration half an hour.

Filtering can be done by applying Bollinger Bands to live schedule.

If there is a movement of candles, for example, to break through the central line, but the breakout itself did not occur, and at the same time a signal was formed on the MACD, then you should wait until the breakout is still there.

It makes sense to use martingale in this strategy only on a new signal. You should not trade when news is released and there is a flat.

Recommended Broker

It is recommended to open an account with a broker FinMax

In addition, at Finmax Now there is a unique promotion:

When replenishing the account in total from 150$ — You get 100% deposit bonus!
When topping up on 250$ (instead of the prescribed 1000$) - You get access to a webinar with live trading! But if you deposit funds to 500$ (instead of the prescribed 1000$) - then you will still be given unlimited access to trading signals! Good luck! The promotion is limited!

Open an account for the promotion ⇢