It is proven that long-lasting trades provide a greater chance of gaining when trading on the Binomo platform. I do not want to say opening positions for a long time is a guarantee of high profits, given the associated risks. You still need to know when exactly enter the market and what course it is going to take in the nearest future.
Today, I want to present a trading strategy that combines 3 indicators. They can serve as a trend reversal prediction. With this knowledge and a little bit of practice, you will start to open successful transactions in no time.
How to set up the chart for the MACD, EMA and PSAR strategy
You will have to add each indicator separately. To do that, log in to your Binomo account, click the Chart preferences icon and find the indicators of your interest. They are the Moving Average Convergence Divergence, the Exponential Moving Average and the Parabolic SAR.
The parameters for each indicator can be adjusted according to your needs. For instance, when you are using the chart with 30-minute period candles, you may want to set the indicators in the following way: EMA10, MACD 12, 0.26 and 9.
I will be using the 5-minute period Japanese candlesticks.
How to use the combination of the MACD, the EMA and the Parabolic SAR to trade on the Binomo platform
A strategy of our today’s focus is designed to work in the trending markets. Ensure there are strong price movements before you apply this method. When this condition is fulfilled, you should wait for the signals about the reversal of the trend from all the indicators together. This will provide the highest probability of entering a successful trade.
Opening a long-lasting buy trade with the MACD, EMA and PSAR strategy
The signals that the downtrend is about to reverse are as follows:
- The MACD white line intersects the red line from below and continues above it.
- The EMA10 crosses the green candle that has appeared on the price chart and continues under the price bars.
- The PSAR indicator which was appearing above the price till now pauses and begins to show under the candlesticks.
Opening a long-lasting sell trade with the MACD, EMA and PSAR strategy
When the uptrend is about to end and the downtrend to begin, you will receive the following signals from the 3 indicators:
- The MACD white line intersects the red line from above and continues below it.
- The EMA10 crosses the red candle on the price chart and moves above the price bars.
- The PSAR indicator which was appearing below the price stops and begins to move over the candlesticks.
The combination of 3 indicators provides pretty powerful signals to enter the trade. The MACD, EMA and PSAR together give information about the imminent trend reversal. That is why you should open the positions against the current trend with them.
Remember to ensure the market is trending. Then, wait for the signals from all 3 indicators. Also, they work best for the positions that are kept open for a long time. For example, if you are trading with the 5-minute candlesticks chart, you can hold your position open for 30 minutes or more.
Use this effective strategy on your Binomo demo account first. After a while, you get confidence in using it which is necessary to conduct successful trades with real money. Kindly use the comments section below, if you have any questions or comments on the MACD, EMA and PSAR method on Binomo.
Best of luck!