Default MACD settings is not suitable for binary option much. So I found a new way to trade on binary option on my own. In my strategy I am trading using MACD setting (3,5,13) You can see it in the picture here.
How to trade using my MACD settings?
First you have to open the 5 min chart and check whether there is a signal for you to trade. There are four signals. We can divide it like this.
Signal line going into histogram
if signal line going into histogram and if histogram is positive number.
Then it is time for a call option for three candles.
if signal line going into histogram and if histogram is negative number
Then it is time for a put option for three candles
Signal line going out from histogram
if signal line going out from positive histogram
it is a time to put option for three candle
if signal line going out from negative histogram.
it is time to call option for three candles.
But please obey the trend 50 EMA line
If all the things are match and 50 EMA trend match according to your option no one can stop you.
If candles are under 50 EMA it is a down trend so you should only make put options
if candles are over 50 EMA it is a up trend so you should only make call options.
*In my screenshot 50 EMA is denoted by a red line in chart window.
If you need more assistance please comment below
Cheers
Thilina S Abeysinghe