MACD Strategy for IQ Option and Olymp Trade, trade profitably in Malaysia using this strategy.
This strategy includes MACD oscillator, (EMA) Exponential Moving Average, and Parabolic SAR. This is one of the simple strategy used by traders to increase their profitability in Malaysia while trading with IQ Option and Olymp Trade.
These three technical indicators together produce better trading signals that help you interpret the latest trend. It helps traders enter a buy or sell position at right time. This combination of indicators as a strategy has been used by many traders in Malaysia to get a profitable result. You can challenge yourself and double your IQ Option or Olymp Trade Account while observing money management and risk management. The Olymp Trade traders can also use this strategy to double their Olymp Trade Account and share their experience in the comments below.
MACD Trading Strategy includes three indicators
- The 14 period Exponential Moving Average (EMA).
- The MACD indicator to indicate the direction and strength of the trend
- The Parabolic SAR indicator to reconfirm the signal
How to configure the MACD Strategy for IQ Option and Olymp Trade platform?
Configure the charts, as shown below. The chart selection process is demonstrated with the IQ Option platform. You can also configure the chart on the Olymp Trade platform in a similar way.
Select the Candlesticks chart and a time period of 1 hour. The recommended time frame for this trading strategy with this approach is 1 hour.
Set the Indicators – Click on the indicators button on the bottom left corner of IQ Option platform and add MACD, EMA, and Parabolic SAR to the chart. The steps are shown on the below image.
Now monitor the chart for signals. Parabolic SAR dots above the price lines indicates a down trend. When the dots are displayed below the price line, it is an up trend.
How to read the charts and trade IQ Option and Olymp Trade?
Opening UP or BUY trades with MACD strategy?
Before you click the BUY button or UP Button, ensure that you have an upward trend.
- Ensure that the previous candle crosses through the EMA line and closes above it.
- Parabolic SAR dots are below the candles.
- The MACD line crosses over the signal line in the upward direction.
When you find the above conditions, pause until the end of the present candle. Place the BUY or UP trade at the start of a new candle. The trade expiry while using this strategy should be equal to double the time frame. In this example, the chart is of 1hr time frame, the trade expiry should be 2 hours.
Opening a SELL or DOWN trade using this strategy?
Before you go for a SELL or DOWN trade, ensure the following conditions met.
- The price candle (Red candle) crosses down through the EMA line.
- The MACD line (blue) crosses the signal line (amber) in a downward direction.
- Parabolic SAR dots are above the price candles.
Don’t be in a hurry to place a trade, wait for the MACD lines cross and wait for the present candle to finish. Then reconfirm all the three indicators. Now, place a trade at the start of a new candle with 2 hours expiry.
How to make $100 per day using this strategy in the Malaysia?
This strategy has the potential to earn you $100 or more per day in Malaysia with an investment of $500. Deposit at least $500 with IQ Option or Olymp Trade, and start trading while investing $25 in each trade. You have to win 5 trades to earn $100, some times you may need more number of trades to earn $100. You can find 5 to 10 trading opportunity confirming the strategy in 4 to 5 hours of observation.
Trade safely – Stop trading after you have reached your daily target of $100 on any day. Stop trading for the day if you lose $75 or more on any day. Start fresh again on next day.
The following tips will help you avoid losses –
- Do not initiate a trade based on a single signal; the signals from all three indicators must match.
- The trade expiry must be two times the time frame. If you have 1-hour chart, then trade with 2-3 hours expiry.
- This strategy works well in the US and European session. Avoid trading during news events.
- Never trade more than 5 to 10 percent of your account in any single trade. Always study your trades and plan your risk strategy based upon your success rate.