The Dema MACD Zones binary options strategy is a new visual representation of the standard technical MACD indicator and also includes additional signals and Heiken Ashi candles.
Despite the visual component, the Dema MACD Zones strategy has very simple rules, but at the same time it has fairly accurate signals when trading with the trend.
Characteristics of the strategy for binary options Dema MACD Zones
- Terminal: MetaTrader 4 .
- Time frame: M1-D1.
- Expiration: 5 candles.
- Types of options: Call/Put.
- Indicators: #LURCH_SRv5.mq4, dema macd zones amp alerts 2.ex4, HeikenAshi3.mq4.
- Trading instruments: any.
- Trading hours: 8:00-18:00.
- Recommended brokers: Quotex , PocketOption , Binarium .
Installing strategy indicators for binary options Dema MACD Zones in MT4
Indicators are installed as standard in the MetaTrader 4 terminal.
MetaTrader 4 instructions for installing indicators:
The main Dema MACD indicator has various settings, including standard parameters, so you can customize it for yourself if you have already used MACD in trading before:
Alerts are also configured, which make it easier to monitor signals from the Dema MACD Zones strategy:
The essence and rules of trading using the strategy for binary options Dema MACD Zones
On the Internet, the Dema MACD Zones strategy is quite common and everywhere the trading rules for it speak only about signals and zones, but nowhere is it mentioned that the most accurate trades can be made when trading with the trend, and it does not matter what binary options timeframe is used.
Therefore, in order for trading using the Dema MACD Zones strategy to bring the best results, it is worth studying how the trend works in the markets , since this information is fundamental in any type of trading. The ability to identify a flat will also not be superfluous and will allow you not to make transactions at such moments, since there are always sideways trades between trends.
Speaking about the Dema MACD Zones strategy itself, it is based on the well-known MACD indicator, but it is plotted not in a separate window in the form of a histogram, but on a chart with a red and green background, which makes monitoring the indicator readings much more convenient:
The background is also divided into lighter and darker colors, which indicates growth, decline or neutral indicator readings. Respectively:
- Green color indicates the indicator is growing.
- Dark green indicates a neutral state, but growth is still observed.
- Red color indicates a fall in the indicator.
- Dark red indicates a neutral state, but there is still a drop.
Regardless of whether the color is currently light or dark on the chart, it is still suitable for making trades if there are other signals.
The only disadvantage of the Dema MACD indicator is that it is impossible to see divergences, which can also often give a hint about the future direction of movement.
The trading rules for the Dema MACD Zones strategy are simple, and the Call option is purchased when:
- A blue arrow appears, pointing upward.
- The candles are painted blue.
- The background is green or dark green.
A put option is purchased when:
- A red downward arrow appears.
- The candles are painted red.
- The background is red or dark red.
Please note that, as mentioned above, all these signals give the maximum result when working with a trend, which will be shown below in examples.
Examples of trading using the Dema MACD Zones binary options strategy
Next, let's look at examples of potential trades based on the trend, where it will be clear that if you use all the signals in a row, this will definitely bring a loss in the future in most cases. We will use the EUR/USD pair and the M5 time frame.
Opening a Call Option
Please note that the growing trend has already begun its development, and if the first signal could still be missed, since there was a deep rollback, then the second signal should have been used to buy a Call with an expiration of 5 candles:
And special attention should be paid to signals against the trend, which, as can be seen from the example above, would not bring profit, although there were also several of them.
Opening a Put option
The same principle applies when trading with Put options. When there is a downtrend and the extremes have been updated, you can safely use signals in the direction of the trend, and again note that signals against the trend again would not have brought profit, although all the conditions for buying the Call option were there:
Conclusion
As you can see from the trading examples, the Dema MACD Zones binary options strategy can bring profit, but stable income can only be achieved when using the trend strategy. It is also mandatory to test trading initially on a demo account, using all the rules described above.
It is also worth noting that there will always be losses, and therefore when trading using this strategy on a real account, you should definitely adhere to the rules of money management and risk management .
The chosen broker is also quite important in trading, and on our website you can choose a trusted broker from the rating of binary options brokers .
Download the Dema MACD Zones strategy
Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.
See also:
How to make a profit by trading on clean charts
How to adapt a Forex strategy to Binary Options?
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