MACD ( Moving Average Convergence and Divergence ) is a trend following indicator that Pocket Option offers. You can find them on the trend section of the indicator list.
Configuring the Moving Average Convergence and Divergence on the Olymp Trade chart
Setting up the indicator is really easy. Firstly, Sign in to your Pocket Option account. and click on the indicator button and search for the MACD indicator on the list.
If you don’t like the colour of the line or you want to darken the line. You can surely do that by clicking on the pencil icon just above the indicator.
You can also change the timer of the indicator as per your experience. but I highly recommend you not to change it because it works perfect on the default settings.
About MACD Indicator
MACD or Moving Average convergence and divergence is a trend following indicator used in the technical analysis of stock prices and is created by Gerald Appel in the late 1970s. The indicator is the combination of three lines Macd line, Signal line, & histogram.
How to use MACD indicator at Pocket Option
MACD indicator uses the three most important points. The two lines I have highlighted above in the box are the EMA lines. Where the green line is EMA 12 and another one is EMA 26. The Ema 12 responds much quicker than EMA 26. and the intersection of these two lines creates buy and sell signals.
The spikes around the two Ema lines is called a histogram. and the Histogram is used by traders as a trend confirmator. If we see a good amount of green spikes above line 0. It signals a bullish trend and vice versa If we see a good amount of red spikes below line 0 it represents a bearish trend.
Open buy trade with green spikes
When the green line intersects the red line from the bottom and moves above the line zero and later stays above the red line. It signals a bullish trend. next, confirm the trend with a histogram if we good amount of green spikes above the line zero. It signals a very strong bullish trend and here we can place a buy trade.
Open sell trade with red spikes
Similarly, When the red line insects the green line from the top and later the red line is above the green line below zero. It represents a bearish trend and for trend confirmation, if we see a good amount of red spikes below line zero it signals a bearish trend and here we can open a sell trade.
So, this is how you trade with the Macd indicator the best thing you do is try this strategy on the Pocket Option demo account and check how this indicator behaves for you. Once, you have practised enough you can later shift Pocket Option real account and make some real bucks. Till then I wish you a very happy trading.