The Millennium strategy is a profitable technique of experienced traders. Instead of using the usual Japanese candlestick chart, they use the Heiken Ashi candlestick chart to maximize the probability of accuracy.
This way helps them always have regular profits when trading in Olymp Trade. After learning for a while, I would like to introduce to you how to use the Heiken Ashi candlestick chart to enter orders with the Milennium strategy.
Why do we have to use Heiken Ashi candlestick chart to trade? What benefits does it have?
Heiken Ashi candlestick chart is also known as Heikin Ashi. With special structural properties, Heiken Ashi are inclined to identify trends. It is usually a bit slower than regular chart to remove noise signals. That makes the graph easier to see.
– Heikin Ashi will be a good tool to trade when the market is noisy.
– It helps traders avoid getting false signals from the market and have accurate entry points according to the trend.
– Observing Heiken Ashi chart will help investors easily grasp the trend and minimize the psychological impact from price fluctuations.
– Can be used on many time frames: 1 minute, 5 minutes, 1 hour…
How to read the Heiken Ashi chart
According to my research, there are 4 main signals that help determine the trend with Heiken Ashi chart.
– Green candlesticks show an uptrend. You can buy more or exit the sell order.
– A candlestick that has a small body with upper and lower shadows indicates a possible trend change. If you want to enter orders early, place after these candlesticks. Otherwise, you should wait for more signs before making a decision. In general, this is the indecision point of the trend, which can reverse or move forward.
– Red candlesticks show a downtrend so you can sell or exit buy orders.
– A red candlestick that has no upper shadow show a strong downtrend. Keep holding SELL order until the end of the trend.
However, to determine the best entry zone, you need to combine with candlestick patterns, price patterns, trends, support and resistance.
How to set up the Millennium trading strategy in Olymp Trade
After logging in to your Olymp Trade account, choose “indicators” => “Strategies” and click on “Millennium” as shown below.
This is the strategy to find entry points on the Heiken Ashi candlestick chart combined with the Detrended Price Oscillator (DPO) in the form of Histogram and has 10 cycles.
After finishing the setup, let’s go to the conditions to enter the orders.
How to enter an order with the Millennium trading strategy
We will observe the Heiken Ashi candlestick chart on the 1 minute time frame. If there are reasonable entry signals, you will trade with the expiration time of 2 minutes. There will be criteria to open an order as follows:
Open an Up order when the Heiken Ashi candlestick chart changes from a red candlestick to a green one. At the same time, the Detrended Price Oscillator crosses the 0 line from bottom to top.
Open a Down order when the Heiken Ashi candlestick chart changes from a green candlestick to a red one. At the same time, the Detrended Price Oscillator indicator crosses the 0 line from the top to bottom.
Safe capital management with Millennium strategy
You will have a lot of opportunities to trade in a day with the Millennium trading strategy. So to avoid over-trading, you should limit the maximum number of orders that will be traded in 1 day (for example, 5 orders).
And Balanced capital management will help your account grow steadily in the long term. This is a way of managing capital that is easy to apply and highly effective in real trading.
For example, your maximum orders per day are 5 with a capital of 100$. Each order you will enter 20$. Just win 3 out of a total of 5 orders, then you are sure to be profitable. Although it is not too big, 3-5% profit for the day is a perfect number in Olymp Trade.
All from trading strategy to capital management method have been set up methodically and logically. Let’s put it to the test on a Demo account to see if it really makes a profit or not. If yes, then make sure it has been tested for a long enough time (at least 4 weeks) before being put into real trading.
If you don’t get very positive results, you need to spend time to learn more. If things are still not positive after more than 2 months, you can choose for yourself a more suitable way to trade in the strategy section. Hope you soon find out how to trade effectively to become a successful trader.
Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19