Olymp Trade is one of the most popular online platforms in India. Effective trading requires deep knowledge and skills, including having your own strategy. Below, we have outlined some strategies that may be useful for beginners, while some are for experienced and VIP traders. You will learn about techniques such as SMA, trading against the trend, etc.
SMA trading strategy
SMA stands for Simple Moving Average. It is a great indicator that shows an asset’s average price over a specific period. For instance, if the SMA setting has 5 as a period, then the last 5 candlesticks will be used to calculate the average price, i.e., x1+x2+… +x3/5, where x1, x2… represents different candles, and 5, the period.
Primarily, this strategy is used in technical analysis. Its main advantage is that it lets an investor know if a security is trending DOWN or UP quickly.
If the line on the chart is moving up and the asset’s price is above it, then the stock is trending up. This would be the optimal time to buy stocks if you are a trend follower.
If the line on the stock moves downwards and the price is also below it, then the stock is trending down. A trend follower would sell at this time.
Trading against the trend with a price level
To earn extra money in Olymp Trade, you can also go against the trends. In that case, the 1-minute (or 5-minute strategy) can be called the best trading tactic you can use.
Olymp Trade is not one of the binary options but one of the best online digital platforms that use Fixed Time Trades. The minimum duration is only 60 seconds, no matter your entry and exit signals generation. We can also refer to it as scalping.
You may not need indicators or oscillators when you trade with the 1-minute strategy on Olymp Trade. However, setting up this trading strategy, you will need to consider the following:
- Price action: the way price reacts to the conditions in the market
- Dead zones: the price is not moving, or minimal activities are taking place on each side; do not participate in trade at this point.
- Red zone: prices are moving, and you can see ongoing intensive activities; you can now enter the trade.
- End zone: observe the candlesticks. They become smaller, progressively depicting market exhaustion. This is the right time to exit the market after the price moves in your favor.
- Support and resistance
Make sure you have correctly identified the support and resistance levels. The use of moving averages or several timeframes will help to do this. For example, trading on the 15-minute timeframe, you can test support/resistance on the 1-hour one.
- Candlestick patterns
Observing the patterns formed by some candlesticks can be helpful to forecast the next move in the price.
5 minutes strategy
A five-minute strategy (strategi 5 menit) can be a perfect short-term technique, especially for beginner traders on Olymp Trade. It is also helpful in trading trend reversals.
You can choose to open either short or long positions with this strategy. Use indicators, such as the SMA, for the most accurate forecast. Not to follow false signals, do not open trade before the closure of the candlestick where the two SMAs crossed.
Here is how you can go about 5 minutes strategy on Olymp trade:
- Log in to the site https://olymptrade.com/ or in the app.
- Сhoose the asset you wish to trade with, e.g., the USDJPY currency pair.
- Specify the investment amount.
- Set the time frame to 5 minutes.
- Forecast chart movement (UP or DOWN).
Wait for the expiration, and if you correctly identify the trend, you will receive additional income.
Trading with сandlesticks
One of the simplest chart types you can meet when trading on Olymp Trade is the Japanese candlesticks. They come in green (bullish) and reddish (bearish) colors. A strategy based on candlestick analysis is convenient for beginners since the main subject of observation is candles, not indicators, and the optimal timeframe is 5 minutes.
The reason for opening trade will be the appearance of three or four candles of the same color in a row. Such a combination is a signal for forecasting in the opposite direction. After green candles, a trade is opened to reduce the price, and after red candles, to increase.
Note! Candles should have a body; otherwise, they don’t count. A sharp rise mostly signals a stronger trend. A decrease in candles after a long peak may indicate a reversal or end of a trend.
Effective trading with candles in Olymp Trade is possible using the Martingale system. The primary law of this strategy is that you are only required to trade with a single candle color till the forecast is correct, then switch to trading using another color, increasing the investment amount til your decision is correct.
Note! When applying this strategy in Olymp Trade, keep money management in mind. You must determine the allowable amount of losses, after reaching which you will stop trading for a while.
VIP strategy Olymp Trade
Opening a VIP account on Olymp Trade comes with several advantages. One of them is the ability to use secret strategies explicitly designed for privileged traders.
VIP traders also can use trading strategies for professionals, such as:
- Fibonacci methods: represent scientific price analysis techniques. You can use Fibonacci levels to find the points of the asset price reversal beforehand.
- Peacock strategy: this trend-following method uses technical indicators to determine if the trend is likely to continue going upwards or down and find the best entry point.
One of the main options of a VIP account is the ability to ask your mentor for guidance on any trading strategies.
MACD stochastic combination strategy for Olymp Trade
Many traders will tell you that it is essential to have the right indicator to determine the direction of price patterns. One indicator can do this task. However, if two compatible indicators can be joined, they will provide the most effective results.
Pairing a bullish Moving Average Convergence and Divergence (MACD) and a Stochastic Oscillator can form a peak combination for entry into the trade. The two work together because Stochastic compares the stock’s closing price to its price range over a specific time range. On the other side, MACD forms two moving averages.
If you use this pair wisely, it can be an effective way to minimize losses. However, remember that no indicator is a 100% guarantee of success or win.
On the net, you will find many more tricks to use different strategies on demo and live Olymp Trade accounts, such as SMA or parabolic strategy. You can download pdfs about strategi kompensasi or read trading education blogs in Hindi or Sinhala.
However, we do not recommend believing stories on “how I bought my dream car thanks to a killer strategy”, whether they are posted on Youtube, Quora, or Nairaland. You should learn that no single technique can be assumed as the best trading guide, i.e., there is no unambiguous answer to the question of what is the winning strategy. Test every new strategy provided by Olymp Trade with caution, even if other traders call it working.
To reduce the risk of losing your investment, constantly increase your skills, including using the Olymp Trade app anywhere (in addition to Android and iOS, the software is also available for PC).