MACD (60 seconds)

LEVEL: ADVANCED

Is the 60-second strategy possible with binary options?

60sec

Binary options have different expiry times and brokers do what they can to offer more and more short-term options: 60-, 30- or even 15-second ones. The trend seems to be: earn as quickly as you can. Is it possible to follow a strategy in such a short period of time? Is it even possible to talk about predicting movements on a chart within 60 seconds?

There are so many things you cannot do within 60 seconds. You cannot even brew tea. It does not come as a surprise that while some believe it’s absolutely impossible to predict anything within a minute, others claim that adjusting the indicators and reacting swiftly is the key to success and there are also those who only trust automatic bots to do that. We encourage you to test the strategy using a demo account.

The advantage of short-term options is the ability to handle many transactions within a day. If we take into account a strong market trend or the fundamental analysis and strong market signals, then this strategy may prove successful.

However, there’s also a flip side: fast earnings may mean fast losses. Short-term strategies are for seasoned players who have already tested them using their demo accounts.

How to use the 60-second strategy with the MACD indicator?

The 60-second strategy requires using the right indicator. Binary options platforms do not offer many price chart analytical tools, so we need to use a different service. It’s not the perfect solution since prices may differ from platform to platform – especially when we consider binary options platforms – but few brokers offer such services, for instance MT4 platform (CLMForex). We’re using freestockcharts.com that offers an advanced platform without any registration or installing anything.

We choose the asset we want upon launching the platform (e.g. currency pair EUR/USD) and we set the time interval (e.g. 1 minute). Then we add the indicator called MACD, which should calculate and set the direction of the current trend. It’s a tool used in technical analysis consisting of two lines: MACD line (the blue one) and the signal line (the white one).

 

Using edit option, we set the indicator:

  • Exp Moving average period – 3
  • MACD short – 9
  • MACD long – 20

It should look like that:

 

 

Now, if the MACD line (the blue line) crosses the signal line (the white line) from below – it’s a signal of an upward trend and an indication that you should buy the asset. An example:

 

 

 

 

 

 

To make sure that the trend has been properly recognized we check whether the candle is in line with the direction of the blue line.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

When the opposite is true (the blue line crosses the white line from above) – it indicates that it’s time to sell the asset and that the trend is downward:

 

 

 

 

 

 

Here’s how it looks when you analyze the current candles:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MACD is not a perfect indicator and it may be wrong (although it’s been effectively used by many), which is why to perfect this strategy you should consider adding and testing other indicators or settings. What’s beneficial is that MACD works well with the current trend. While it may seem that one indicator is just not enough, not much can be interpreted within 60 seconds. The quicker you can analyze, the better. Also, it is an easy strategy to configure and analyze. However, since you have to react really quickly and be able to analyze the trend in additional time intervals (as a confirmation), it is marked an advanced binary option strategy.

 

Using MACD indicator with other binary options expiry dates

This strategy may be proficiently used with other expiry dates. It has been tested with 30- or 120-second expiry dates, as well as 5-minute ones. Recommended currency pairs: EUR/USD, USD/CAD, NZD/USD.

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