This strategy for the Pocket Option broker consists of two basic indicators for binary options , one of which was created by Wells Wilder, hence the name Wells MACD.
The strategy includes MACD and Parabolic SAR , where the first is responsible for signals for entering a trade, and the second for trend changes.
The convenient thing is that the Pocket Option indicators on the trading platform include these two tools and therefore there is no need to use the MetaTrader 4 terminal .
Also, do not forget that you can start trading with additional funds by using promo codes for replenishing your account from the Pocket Option broker, and to improve your performance with this strategy, you can use a promo code to cancel a losing trade for $10 .
Setting up indicators on the Pocket Option platform
This strategy is as easy to use as possible, and beginners can easily start trading with its help. It also has simple rules and basic tool setup.
The MACDI indicator is a histogram that is based on moving averages and shows the strength and direction of the trend. Parabolic SAR is similar to moving averages, but moves with greater acceleration.
Both instruments are added with basic settings, which for MACD are “12-26-9”:
And for a parabolic - “0.02-0.2”:
To add indicators, you need to go to the panel with them, which is located in the upper left corner:
Trading rules and examples of transactions in Pocket Option
After adding indicators, you can start trading. Call options are purchased when:
- MACD crosses the zero level from bottom to top;
- Parabolic SAR is below the price.
Put options are purchased if:
- MACD crosses the zero level from top to bottom;
- Parabolic SAR is above the price.
Expiration should be 5 minutes, same as the timeframe .
Now let's look at an example of buying Call and Put contracts and start with a Call option. In the image below you can see that MAKDI has crossed the zero level from bottom to top and continues to rise, the price is also rising, due to which Parabolic SAR is below it. Under these conditions, you can buy a Call with an expiration of 5 minutes:
In the following image you can already see the situation with the Put option, where the MACD has crossed the zero level from top to bottom, the price is falling and is under the Parabolic SAR, thanks to which you can buy Put with an expiration of 5 minutes:
Conclusion
The Wells MACD strategy was created specifically for beginners in binary options trading, as it has simple trading rules and uses basic indicators that are known to many even novice traders.
Do not forget that trading binary options is associated with risks, and therefore be sure to test this strategy on a demo account , and also adhere to the rules of money management and risk management .
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Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.
See also:
How to trade from mobile devices on the Pocket Option platform
Pocket Option Broker Platform for Windows
How to trade express orders with the Pocket Option broker
How to participate in tournaments on the Pocket Option platform
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