This is another way to trade at Olymp Trade using Support/Resistance. It seems that this type of indicator has the highest correct probability right now. Together with the Stochastic oscillator, you will have more secure and accurate entry points.
Stochastic oscillator and Support/Resistance indicator
No need to say too much about Support/Resistance. The principle of this indicator is when the price goes into support or resistance level it has a high probability to bounce back. If you don’t understand it, read more of this article: Support and Resistance – two best technical indicators that Olymp Trade traders must know
The question is if the price enters the support/resistance level but does not reverse, how to detect the time it wants to break this level
That’s when you should use the Stochastic oscillator. If you aren’t aware of this oscillator, read the article: How to use the Stochastic oscillator to increase the reversal trade probability when trading at Olymp Trade
How to set up Stochastic oscillator and Support/Resistance indicator at Olymp Trade
At the Tab Indicator, you choose Stochastic along with horizontal lines one by one to drop on the Olymp Trade price chart. It’s best to use Japanese candlestick chart. With Stochastic oscillator %K line (blue): 14 and %D line (red): 3
How to trade at Olymp Trade with Stochastic oscillator and Support/Resistance indicators
Open Up trades at Olymp Trade
The blue line (%K) crosses the red line (%D) in the oversold zone (below 20) then moves up + the price touches the support zone = open Up trades.
With support/resistance levels, you won’t be sure when the price will reverse. The best way is to use a time frame longer than the time creating candlesticks you choose. For example, if you choose chart 1-minute candlestick, open a long trade about 5 to 7 minutes. Thus, the price will reflect the trend better.
Open Down trades at Olymp Trade
The %K line crosses the %D line) in the overbought zone (above 80) then moves down + the price touches the resistance zone = open Down trades.
Keeping the expiration time appropriate to the time creating candlesticks on your Olymp Trade interface. Don’t trade too short, but also limit opening too long trades. A reasonable amount of time to guess the price right is just enough for you to make money.
Good luck!
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General Risk Notification: trading on the Olymp Trade platform involves high-risk investment. Do not invest funds that you are not prepared to lose. Before you start, we advise that you become familiar with the rules and conditions of trading outlined on our site. Any examples, tips, strategies and instructions on the site do not constitute trading recommendations and are not legally binding. Olymp Trade is a trading platform which operates online. Traders make their decisions independently and this company does not assume responsibility for them. The service contract is concluded in the territory of the sovereign state of Saint Vincent and the Grenadines. The services of the company are provided in the territory of the sovereign state of Saint Vincent and the Grenadines.
