Bollinger MACD Binary Options System

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Contents

Using Bollinger Bands, Stochastics and MACD to Fine-Tune Your Entries

In my last blog post, I looked at using Bollinger Bands to identify trade setups. Today, I will add two layers of confirmation, the MACD and Stochastics to help identify and confirm trade entries for both Binary Options and Nadex Spread trades

Cam White, Trading Pub
March 20, 2020

Bollinger Bands are a simple, but powerful indicator that can easily help you find dynamic areas of support and resistance on the charts.

Investopedia defines Bollinger Bands this way:

“A Bollinger Band, developed and trademarked by famous technical trader John Bollinger, is plotted two standard deviations away from a simple moving average.”

Bollinger Bands have an upper band, a lower band and a center moving average. The upper band typically acts as resistance, while the lower band acts as support. The center moving average can also act as resistance or support within the channel.

When volatility is high, the bands widen, and when volatility is low, then the bands narrow.

How to Use a “Pierce” in the Bollinger Bands to find trades setups:

This is a 15-Minute Nadex Chart of the US 500 Index on Friday, March 17, 2020

The “Bollinger Pierce”

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If you see a candlestick break through the upper upper or lower band, it triggers a likely reversal in the market. Think of this like a rubber band around your wrist. The further you pull the rubber band away from your wrist, the faster and harder it snaps back. This can be a great opportunity for a short-term scalping of profits.

How to trade the “Bollinger Pierce” with Nadex Binary Options and Spreads:

  • Binary Options: Once the upper or lower band is “pierced”, then I’m looking for the shortest expiry available to trade the reversal. Again, select the strike price that best suits your trading personality.
  • Nadex Spreads: The “Bollinger Pierce” can be a good way to scalp some ticks or pips. If a candlestick closes significantly above the upper band or below the lower band, then it can trigger a reversal trade with a tight mental stop/loss.

In the Chart above, three “Bollinger Pierce” opportunities were called out:

  1. 9:15am EDT: The US 500 Index moved down 50 Ticks
  2. 11:30am EDT: The US 500 Index moved up 70 Ticks
  3. 2:15pm EDT: The US 500 Index moved down 80 Ticks

There were ample opportunities to capture a piece of each of those moves with Nadex spreads.

Using the MACD and Stochastic Oscillator for Confirmation.

Notice on the chart above, that when the upper Bollinger Band was “pierced” The Stochastics were overbought and the MACD was crossing over from Bullish to bearish. When the Lower Bollinger band was pierced, the Stochastics were oversold and MACD was crossing over to bullish. Using these indicators can hel confirm your enrty.

Learning how to trade with Bollinger Bands can be helpful for both novice and experienced traders.

Cam White

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Bollinger MACD Binary Options System

This trading indicator is widely used to detect the volatility and oscillation amount of market price. The Bollinger Bands has a Channel that is developed by two bands; Upper and Lower Bands.

On the spot where price touches or crosses these two Bands a Binary Options signal can be detected. A Moving Average can be attached to Bollinger Bands indicator to enhance its function.

In some Bollinger Bands types, alongside of Upper and Lower Bands, we can add another Bands to separate the Bollinger Bands in three various areas.

The middle region shows neutral status while the Upper and Lower Areas indicate suitable spots to place orders considering other confirmations.

In Binary Options market, if price proceeds towards Upper and Lower Bands or regions then suitable positions to purchase Call/Put or other contracts appear.

  1. Bollinger Bands and Divergence/Convergence

This Binary Options Strategy is generated to show the probable reversal spots when market price bounces back toward Bollinger Bands Channel.

Regarding the effect of Middle Line of Bollinger Bands on market price direction, confirmation from Hidden Bullish or Bearish Divergence can develop a Binary Options signal to purchase a contract.

This Binary Options Strategy is generated to show the probable reversal spots when market price goes near Bollinger Bands Middle Line.

When price hit the Bollinger Band multiple times, if it passes the band and return inside the channel then it is probable to return toward the band again.

Share and Stocks Bollinger Bands Middle Option

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CFD Futures Binary Options Trading with BB and Div

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Energy Binary Options Trading with BB and Hidden Div

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Indices Binary Options Trading with BB and Div

Shares and Stocks Binary Options Trading with BB and Div

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How to Use MACD Indicator to Trade Stock & Binary Options

MACD (usually pronounced Mac-Dee) stands for Moving Average Convergence Divergence.

The MACD is the difference between the value of the 12 period EMA (exponential moving average) and the 26 period EMA of the asset price.

In short, the MACD indicator gives the short to medium term trend of the price action. A positive MACD value indicates upward price trend while a negative MACD value indicates a downward price trend.

A 9 period EMA of the MACD is superimposed on top as a Signal Line. In other words, the Signal Line is just a smoothed out, less choppy version of the MACD line.

There is also a histogram which measures the difference between the MACD line and the signal line. The histogram can help to assess the velocity of the upward or downward movement.

Buy & Sell Signals

Crossover Signals

Buy signal is generated when the MACD line crosses above the signal line.

Conversely, a sell signal is generated when the MACD line crosses below the signal line.

MACD Divergence Strategy

Another strategy often employed by traders using the MACD to find trading opportunities is the MACD divergence strategy.

When the MACD diverges from the price action, it can signal the end of a trend.

Bearish Divergence

When the price is on an uptrend but the MACD is on a downtrend, it signals a bearish divergence, indicating that the market may soon be turning bearish.

Bullish Divergence

When the price is on a downtrend but the MACD is on an uptrend, it signals a bullish divergence, indicating that the market may soon be turning bullish.

Continue Reading.

RSI (Relative Strength Index) Indicator Explained

The RSI or Relative Strength Index indicator is bounded momentum based technical indicator that attempts to predict a change in momentum. . [Read on. ]

MACD Indicator Explained

MACD (usually pronounced Mac-Dee) stands for Moving Average Convergence Divergence. The MACD indicator gives the short to medium term trend of the price action. [Read on. ]

Bollinger Bands Explained

The bollinger bands are adaptive trading bands that reflect changes in volatility and provide a better view of the true extent of the price action. [Read on. ]

Parabolic SAR Explained

The Parabolic SAR indicator (or PSAR) is designed to calculate the point in time when there emerges a better than average probability of a trend switching directions. [Read on. ]

ADX Indicator Explained

The ADX, or Average Directional Index measures the strength of a trend and can be useful to determine whether an asset is currently in a trending market or a ranging market. [Read on. ]

73# MACD Binary Strategy

MACD Binary System

Submit by freddyfx 14/08/2020

MACD Binary Options Strategy is an trend momentum system, It’s based on the double MACD in the sub window below the chart.

Markets: Stocks, Indicies, Metals, Forex. This binary strategy works good on the Indicies ( S&P 500, DAX, FTSE, ).

MACD Binary System il also good as trading system for to trade.

Time Frame 30 min or higher ( best 4H).

Expires Time 3 bars after. (90 min, 180 min, 720 min, 3 daily).

Technical financial indiicators:

Exponential moving average ( 6),

Exponential moving average ( 13),

MACD (12,26,1) , with MACD (5,15,1).

MACD ( 5, 15, 1) crosses upward MACD ( 12,26,1 );

MACD ( 5, 15, 1) crosses downward MACD ( 12,26,1 );

Double MACD Trading System

The same conditions for entry trade.

Exit position options:

when MACD (5, 15, 1,) crosses in opposite direction MACD (12,26,1);

when exponential moving average crosses in opposite direction;

Best MACD Entries Strategy – YES WE CAN!

MACD is one of my favorite indicators no matter if I’m trading Forex, CFDs, Crypto or BO. It can be used in a variety of ways to determine trends, reversals, and trigger trading signals. It can also be used in any time frame, making it a very useful tool for trading long term, weekly charts or a 15 minute time frame, or anything in between. This article is one I found discussing the best MACD Entries, let’s take a look. One last thing, this article is a great jumping-off point for those using MACD or any kind of oscillator. There are links at the bottom taking you to other relevant articles that will help enhance the success of this strategy.

“The Best Of MACD Entries” – What am I Talking About?

This is an article written by James Ayetemimowa and posted on Forex Strategies Revealed. 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, and uses more than one indicator, which allows better filtering of the signals. Not only that, because of the way MACD works and its applicability to multiple time frames, this technique can be used in longer time frames.

What Is “The Best Of MACD Entries”

This would be a hard question for me to answer since there are so many ways to use MACD to generate good signals. For James it was not so tough, he has been able to quantify neatly just what he believes is the best entry signal. James uses the 5 min charts, two moving averages, and two MACDs. For the charts I suggest candles because that’s the best way in my opinion. The two moving averages specified are 50 bar Simple Moving Average and 100 bar Simple Moving Average. The two MACDs are both standard 12/26/9 but one is histogram and the other is oscillator style. Together these indicators join to create signals with movements that last anywhere from 20 minutes to several hours.

How “Best Of MACD Entries” Works

The set up is pretty simple and since it is on the 5 minute charts, signals come pretty regularly. The two moving averages are used to determine trend, trade type and as part of the signal. Trend is determined by the positions of the two SMA’s. When the short term 50 bar SMA is above the long term 100 bar SMA the trend is bullish. When the short term SMA is below the long term SMA the trend is bearish. With that in mind, traders are instructed to only trade according to this trend. Bullish trades in an uptrend and bearish trades in a downtrend.

A signal is generated when MACD is overbought or oversold and makes a crossover at the same time that prices have retreated past the SMAs. What this means is that in a downtrend you will wait for prices to correct above the moving averages. When that happens a signal will be generated when the MACD oscillator is in the overbought side and makes a bearish crossover. This crossover and signal can be predicted with the MACD histogram. If you look in the example provided, the MACD histogram is making a nice divergence and foreshadowing the lower high and subsequent sell signal generated by this system.

How To Use This Strategy For CFD, Crypto, BO and FX

Entry Rules For Bullish Trades

  1. 50 bar moving average above 100 bar moving average
  2. Price has moved below the 2 moving averages
  3. MACD Oscillator Is Oversold
  4. MACD Histogram Shows Bullish Crossover
  5. If you are trading Forex, CFD or Crypto, open a Buy trade
  6. If you are trading BO, open a Call

Entry Rules For Bearish Trades

Trade Management

For trades opened under FX/CFD rules you will have to use some kind of protection, in the form of Stop Loss and Take Profit. Given that this is a trend following system, the Stop Loss can be fairly tight and placed just behind the peak or bottom that was created before the MACD crossover. For Take Profit, you can use at least a 1:2 RR (Risk to Reward ratio – meaning that for 10 pips risked, you can possibly gain 20) or use a Trailing Stop after reaching the breakeven point.

For trades opened under BO rules, you will have to decide expiry – In the example above 5-minute candlestick charts are being used and targeting a 20 to 30 minute expiry. This equates to 4 or 5 candles so can be applied to any time frame. For example; Daily charts will be 4 days, one week or end of week expiry, 30 minutes charts would be 2 – 3 hours expiry.

Why This System Does Not Suck

Where to begin…. This system does not suck because it is an outstanding example and application of one of my favorite indicators. I won’t be shy in saying that I put a lot of stock in the ol’ 12/26/9. This strategy not only uses my favorite indicators but also incorporates many of the features of a good strategy we here at ThatSucks have come to love. This strategy, as laid out, does not incorporate multiple time frame analysis but I think it would only benefit from it. What it does have is a combination of well worn, trusted and often overlooked indicators that incorporate trend and momentum to generate handy signals for traders of short duration and long duration charts.

Why This Strategy Sucks

This strategy sucks because I didn’t write it and I can’t take credit for it. My hat’s off to you sir James Ayetemimowa and your outstanding MACD system.

My Last Words on the Best of MACD Entries

I don’t know 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, experienced, inexperienced, forex, commodity, stock, index and any other kind of traders there are. I don’t know how else to say but that way. I, and we here, don’t just hand out praise. There are a lot of things that totally suck in the trading world but this is not one of them. Take hold of this strategy, love it, nurture it and I think in the end you will be net positive.

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