According to statistics, divergence signals are profitable in more than 90% out of 100.
MACD divergence – what is it?
The MACD, set with default settings, shows the dynamics of changes in the price of an asset. Its signals are:
- The intersection of the slow and signal lines.
- The transition of histogram columns from the negative area to the positive area and vice versa.
- Divergence — the dynamics of the MACD movement diverges from the dynamics of the movement of quotes.
In the screenshot below, you can see that the price forms two peaks, of which the first is lower than the second. At the same time, two vertices are also formed on the MACD scale – the first is higher than the second:
This is a divergence, after its occurrence, the price more often than in 90% of all cases, quickly covers the inconsistency that has arisen and moves in the direction of the MACD signal. By correctly applying this pattern, you will earn 90% of the time out of 100.
Trading signals
There are 2 types of divergence:
Bullish – a discrepancy between two troughs on the chart and MACD (different slope), after which quotes are actively growing. If it occurs, we wait for the MACD lines to cross upwards and trade for an increase:
Bearish is a discrepancy between two peaks on the chart and MACD (different slope), after which quotes are actively declining. If it occurs, we wait for the MACD lines to cross down and trade for a fall:
Expiration, risk management
Importantly! To work on the strategy, you should set the chart timeframe to 15S – so the MACD signals will be more accurate.
For the 15S timeframe, we use fairly long expiration times. According to statistics, the most profitable is the time interval of 10 minutes.
To open trades, use no more than 3% of the amount on your deposit account. In this case, large trading drawdowns will be excluded, which means that the size of your account will be able to grow quite actively.
Trading on MACD divergence with Binomo broker
For the best trading result using the MACD Divergence strategy, work with trusted brokers, for example, with a leading company that successfully provides brokerage services to Russian traders Binomo.
Among the features of the company: a functional platform, advanced customization options (chart type, indicators, mobile trading, a wide selection of options, expiration dates, etc.), convenient withdrawal and deposit of funds, promotions and bonuses – all this makes binary options trading much more profitable. You can get acquainted with real reviews about the Binomo broker, as well as get involved in an active discussion of active traders
here
.
A detailed review of the Binomo broker is here.
Go to the official website of the Binomo broker here.
In order to buy a
CALL
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy
a PCI
option in the Binomo trading terminal, follow these steps by going to the binomo.com website and preparing the option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Bonuses broker Binomo
A significant advantage of the Binomo broker is the constant organization of profitable promotions and offers, which you can find here. Working on the platform using bonuses, the trader not only gets a good chance of a decent income, but can also get the most out of trading faster.
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