MACD is a very powerful indicator. MACD ( Moving Average Convergence Divergence ) is basically a trend following momentum indicator that shows the difference between two exponential moving averages of price. MACD is calculated by subtracting EMA26 from EMA12. EMA9 is the signal line. If you want to know more about MACD, you should read this article on MACD indicator. You should try to master this powerful indicator. In this post, we discuss a very simple MACD Forex Binary Options Strategy. The most important thing for you to know is when the signal line crosses the histogram and goes below it,  the momentum changes from down to up. In the same manner when the signal crosses the histogram and goes above it, price momentum shifts from up to down. This simple MACD Forex Binary Options Strategy uses this fact to enter a put or a call. Let’s see how below!

MACD Forex Binary Options Strategy

Take a look at the above EUR/USD M5 chart screenshot. Look at the first red arrow which is up, price is going down, the signal line goes below the histogram and the price starts moving up. The momentum shifted from down to up. So just when the signal line crossed below the histogram, if you had bought a call option with an expiry of 15 minutes, you would have made a winning trade.

Now look at the second red arrow which is down, this is the time when an important news item was released. This was the time when ECB Press Conference took place plus USD Unemployment claims were released. You should daily check Forex Factory News Calender which gives the times of the important news releases. This is the time to trade with this simple MACD Forex Binary Options Strategy. Price fell down sharply. If you had just bought a put with 15 minute expiry when the signal line had just gone above the histogram, you would have made a winning trade.

In the same manner, take a look at the last red arrow which is up. Price shifted momentum from down to up when the MACD signal line crossed below the histogram. So if you had bought a call option with 15 minute expiry, you would have again made a winning trade in just 15 minutes. So you could have made these 3 trades in a short span of 2 hours. Now take a look at the following screenshots which illustrate this MACD Forex Binary Options Strategy in action this time on M15 timeframe.

MACD Forex Binary Options StrategyMACD Forex Binary Options StrategyIt is the same. You enter into a trade when the MACD signal line goes above or below the histogram. This MACD indicator changes color as you can see from the above screenshot when the price momentum increases or decreases plus it also gives a sound as well as a popup alert when the MACD signal line crosses the histogram. You can download this MACD_ColoHist_Alert Indicator FREE. You will find this MACD_ColorHist_Alert Indicator in the list of indicators on this page 13 positions from the bottom.Now when you trade with this MACD Forex Binary Options Strategy on the M15 timeframe choose an expiry of 60 minutes while when you trade it on M5 timeframe, choose an expiry of 15 minutes. You can also try these Taurus Signals FREE for 7 days. Taurus Signals have an average winrate of 88% calculated over a period of 2 years.

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