How to trade Binary Option Using MACD Divergence

The MACD indicator is another great tool you can consider when trading binary option.

One of the easiest way to use the MACD indicator to trade binary option is the divergence. For the usage, you just need to use the default setting of the MACD indicator provided by your broker.

In case some of you do not know what MACD divergence is, so please let me spend sometime to go through what a divergence looks like.

  • MACD Negative Divergence

Negative-Divergence

When the MACD indicator forms a lower high while the price forms a higher high, it is consider a sign of MACD negative divergence.

A MACD negative divergence is a sign that the price is going to move down soon and therefore as a binary trader, you can start to look for opportunity to go LOW.

  • MACD Positive Divergence

Positive-Divergence

When the MACD indicator forms a higher low while the price forms a lower high, it is consider a sign of MACD positive divergence.

A MACD positive divergence is a sign that the price is going to move up soon and therefore you can start to look for opportunity to go HIGH.

The purpose of this divergence is to help you predict the movement of the price so that you can only enter trades that are in the direction of the predicted movement.

This will greatly improve your winning probability.

For those of you who do not have a working strategy, you can take a look at the Momentum Strategy that I have shared with readers of this blog via the link below.

Forex Trading Strategy That Works

 

For those of you who are interested to find out more about the binary option strategy that I am using, please click on the link below.

Click Here For The Course

Comments are closed.

My Binary Course Hot Deal
CLICK HERE to find out How You Can Get a FULL VERSION of my Binary Option Mastery Course at a 50% Discount
Daily Live Trade
The Daily Live Trade Post in this blog has been updated everyday since January 2015
Who Is KL?
CLICK HERE to find out more about me and Why I Trade for a Living since 2009