Wednesday, May 7th, 2014 by Tim Lanoue
I have seen a lot of interest in the original binary options 60 seconds trading pattern so I feel the need to keep feeding you guys more short-term trading patterns. As you can guess from the title this is going to be a 60 second trading pattern and it is one I just recently came up with. I have been testing it out lately and so far out of 750 trades I have had a 77% in-the-money, which is pretty good. Below I will discuss everything that you need in order to use this pattern on your own.
What makes this patterns great for novice traders is all you need is one indicator, you don’t need a bunch of indicators that could potentially cloud up the charting solution. The one indicator that we need is the MACD (moving average convergence divergence) indicator. The main function of the MACD Indicator is to measure momentum that is associated with trends. In the picture below you can see how we only place trades when we have short-term trends that developed momentum.
How To Apply the 60 Seconds Trading Pattern
The signaling process with this pattern is very simple and only requires two steps. The first step would be that we need our blue MACD line to touch or cross through our white MACD line, this is the signaling process. In order to confirm this we make sure there is a candle that correlates with the direction of the blue line. So if our blue MACD line crosses our white MACD line upward then we place a CALL trade if we have a bullish candle above it, and vice versa for PUT trades.
Recommended Time Frames, Expiry Times & Trading Hours
When watching the asset I like to have it on a one minute time frame since this is a binary options 60 second pattern. Recommended expiry times when using this pattern would be 30, 60 and 120 seconds, it works great all those expiry times. In addition, when I am using this trading pattern I trade during the New York trading hours.
How To Change Settings on Indicators on freestockcharts.com
In order to change the settings of this indicator to the settings that I have on my chart you need to first add the indicator which can be found by add indicator. Once you click that, scroll down until you see MACD and click on it. In order to change the settings now you go to the exponential moving average and left click on it, select edit and change it to a period of 3. Now go and left click on MACD in the box and click on edit. Now change the short to 9 and the long to 20 and you are all set. Changing indicator settings are relatively simple and will be something you will do often so it wouldn’t be a bad idea to get use to changing these settings and tweaking these trading patterns so they are perfect for you.
As always traders, if you have any questions or comments please feel free to leave them below!