{"id":21906,"date":"2013-08-28T09:53:25","date_gmt":"2013-08-28T13:53:25","guid":{"rendered":"http:\/\/www.ino.com\/blog\/?p=21906"},"modified":"2013-08-28T09:53:25","modified_gmt":"2013-08-28T13:53:25","slug":"using-the-macd-to-trade-binary-options","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2013\/08\/using-the-macd-to-trade-binary-options\/","title":{"rendered":"Using the MACD to Trade Binary options"},"content":{"rendered":"<p>Momentum in the capital markets is similar to the momentum of riding a bicycle especially down a hill.\u00a0 The more speed a bicycle rider has, the further they are likely to go.\u00a0 The same goes for market momentum, so the key is figuring out how to measure it, and use that information to generate trading signals.\u00a0 One of the best tools to use to measure momentum is the MACD \u2013 Moving Average Convergence Divergence Index.\u00a0 The MACD measures the difference between two moving average, referred to as the spread, and compares the spread to a moving average of the spread.<!--more--><\/p>\n<p>The defaults for the MACD are the 12-day moving average and the 26-day moving average to create the spread.\u00a0 This difference is compared to the 9-day moving average of the spread.\u00a0 For <a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=2211\" target=\"_blank\">binary options<\/a> traders interested in intra-day periods, an hourly or 15-minute bar can be used to create signals.\u00a0 Traders should also considered altering the default periods to find a grouping of time periods that suits their trading style.\u00a0 For example, a short term trader could consider a 5-day \/ 9-day spread periods with a 3-day moving average of that spread.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" alt=\"\" src=\"\/img\/sites\/ino\/email\/5225.jpg\" width=\"532\" height=\"399\" \/><\/p>\n<p>The S&amp;P 500 graph shows the last two crossover signals generated by the MACD.\u00a0 The black arrows show a buy signal that was generated in early July which caught the majority of the July rally.\u00a0 It also displays the sell signal created just after the S&amp;P 500 index topped, which also proved to be profitable.<\/p>\n<p>The MACD is a leading indicator, and generally catches the beginning of a trend.\u00a0 The risk is that during a consolidative period, the MACD generates many false signals during a choppy market environment.<\/p>\n<p><a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=2211\" target=\"_blank\"><b>Magnum Options<\/b><\/a><b> is a broker platform that seems to have mastered the brokering world of Binary Options.<\/b><b> <\/b>Established in early 2013, <a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=2211\" target=\"_blank\">Magnum Options<\/a> uses the latest technology for Binary Options traders. The broker is privately owned by investors with many years of experience in the online trading industry. The day to day management is handled by a team of experienced online trading professionals who have all been in the position of their users, and really understand the needs and priorities of both novice and experienced traders. These professionals have assembled an educational team like no other that really focus on informing and educating all traders interested in trading binary options. Because of their expertise in the financial trading industry, Magnum Options has a very unique and refreshing approach to education, teaching people not only how to trade using a binary options account, but also how to use binary options with other\u00a0 trading methods to maximize profits.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Momentum in the capital markets is similar to the momentum of riding a bicycle especially down a hill.\u00a0 The more speed a bicycle rider has, the further they are likely to go.\u00a0 The same goes for market momentum, so the key is figuring out how to measure it, and use that information to generate trading [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":35,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[7948,5475,62,5477,992,5476,5474],"class_list":["post-21906","post","type-post","status-publish","format-standard","hentry","category-general","tag-guest-bloggers","tag-how-to-trade-binary-options","tag-macd","tag-magnum-options","tag-moving-average-convergence-divergence","tag-trading-binary-options","tag-what-are-binary-options"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - 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