There are many strategies for binary options , but most of them can only be used using the MetaTrader 4 terminal , which is not always convenient if the transactions themselves are made through the broker's platform. However, there are strategies that use a standard set of indicators available from the Pocket Option broker .
One such strategy is MACD Profitunity, which uses three effective technical indicators: MACD , Awesome Oscillator and Fractals. This strategy is universal and is suitable for any instruments traded with the Pocket Option broker, and by adhering to the trading rules and filtering signals using these indicators, you can minimize risks, which can subsequently bring more profit.
Also, do not forget that you can start trading with additional funds by using promo codes for replenishing your account from the Pocket Option broker, and to improve your performance with this strategy, you can use a promo code to cancel a losing trade for $10 .
Adding indicators
To add indicators on the PocketOption broker platform, you need to select the indicator panel on the chart:
Then select the three indicators needed for this strategy:
Each of the indicators works according to its own principle and therefore you will need to make your own settings, but only the MACD and AO indicator can be configured, and Fractals works according to a template and uses a certain number of candles, so its settings cannot be changed.
The first one to install is the MACD indicator, which will help determine the price direction. It is worth noting that most often this indicator uses its intersections of the zero line, but in this strategy it will be necessary to follow the signal guide lines of red and green colors. And the trend will be upward if the histogram is above the signal lines and downward if the histogram bars are below the signal lines.
When setting up the indicator, you will need to change its parameters to “34”, “89” and “9”:
The next indicator you should install is Awesome Oscillator, which has standard settings “5” and “34”:
It is not necessary to change them, since with them the indicator shows good results.
The AO indicator is used in the MACD Profitunity strategy to find buy points for options, but to receive signals you need to use several patterns related specifically to this indicator:
- Crossing the zero line.
- Saucer pattern.
The zero line crossing is the simplest pattern and all you need to do is see the AO indicator bars cross the center line, while the Saucer pattern is a little more complex.
This pattern is characterized by the construction of three histogram bars, which look like this:
The image shows that the bar numbered “1” is higher than the bar numbered “2”, and the highest is the bar numbered “3”, which makes it a signal, which means that when such a pattern appears, you need to buy an option. Options on the “Saucer” pattern are bought depending on whether the zero line indicator is higher or lower, and if higher, then this will be a signal to buy a Call option, and if lower, then to buy a Put option.
Lastly, you can add the Fractals indicator, which makes it possible to see the price leaving the range, which ultimately will also serve as a signal to enter a trade, but they can be used only after patterns appear on the Awesome Oscillator indicator.
Since the indicator has no settings, you can simply add it to the chart and not change anything.
Examples of trading in Pocket Option using the MACD Profitunity strategy
Trading on Poketoption using this strategy will be carried out after all the signals converge, which look like this:
- MACD is above/below the signal lines.
- Awesome Oscillator formed one of two patterns above/below the zero line.
- The price has broken through the previous up/down fractal.
When working with this strategy, you can use any time frames, but expirations should be no more than 5 candles.
It is also worth noting that the “Saucer” pattern for the AO indicator should only be used by experienced traders, since it appears quite often, but is not always true, and therefore at the initial stage it is better for beginners to limit themselves to only crossing the zero line.
Buying Call options looks like this:
Put options are bought in exactly the same way, but with reverse rules:
Please note that sometimes fractals can be crossed by price in advance, which means that you don’t have to wait for a new fractal and buy options if other signals are available.
Conclusion
The MACD Profitunity strategy is convenient not only because it can be used on the PocketOption broker platform, but also because it is universal and has simple trading rules, which makes it suitable for beginners in binary options trading.
OPEN AN ACCOUNT WITH POCKET OPTION
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 trade from mobile devices on the Pocket Option platform
Pocket Option Broker Platform for Windows
How to trade express orders with the Pocket Option broker
How to participate in tournaments on the Pocket Option platform
To leave a comment, you must register or log in to your account.