How to use short trades at Olymp Trade: SMA indicator, Support/Resistance and Even Time in a candlestick

This is a heart attack way to trade of a full-time trader. It is because he’s watched the price board all day with a lot of short and long trades. To wait for a long trade with a large amount of money, traders will open short trades with a small amount of money. And this is one of the ways to do that.

Notice: This is a review of how to trade which I advise you not to use frequently (especially for newbies). Because when trading in a short time, your emotions are affected very easily. And at Olymp Trade, if you can’t control your emotions, you will lose money without a doubt.

The idea of ​​trading in a short time with the SMA indicator, Support/Resistance and Even Time in a candlestick

What is Even Time in a candlestick? It is understood as the expiration time is round up in a candlestick. For example: If you trade orders with the 5-minute candlestick chart, the end of the trading period will be in the 5-10-15-20-… -55-00 minute range. This is also the expiration time of a candlestick on the 5-minute chart. So, you will open the order at the best price and the order will be closed in the same candlestick (the time is relatively short. At most is 5 minutes and at least is 1 minute).

The question is: Where is the best price? Answer: When the price suddenly touches or crosses SMA30 + Touches or breaks Support/Resistance. Open the order immediately with the expiration time in that candlestick. Specifically:

Open an Up when: The price falls to SMA30 + touch level (Support/Resistance) = Open an Up with the expiration time in that candlestick.

Enter a Down when: The price increases and touches SMA30 + touches levels (Support /Resistance) = Open a Down with the expiration time in that candlestick.

You can call this is a way to open orders at the candlestick’s shadow. When the price touches or crosses SMA + Support/Resistance, you expect that candlestick will not break static and dynamic levels. Thus, you open the order immediately in that candlestick.

How to manage capital with short-time trading method

There are only 2 suitable ways:

(i) Trade consecutively with a small amount of money

If you use a 5-minute candlestick to open orders like this way, the expiration time will be less than 5 minutes. Short-time trading not only increases the risk of the price manipulation from the bookmaker but also pushes your emotions into an uncontrolled state. Therefore, trade short = trade small (1%/order on the total money of your account – $100 account opens $1 order).

(ii) Reduce capital when winning (taking interest as capital for the next order)

It is the capital management which is very suitable for this type of transaction. Because when the price touches the SMA30 + levels for the first time, the probability of a reversal in that candle is relatively high. But the next second and the third time, the possibility of reversal will decrease significantly. So: High probability = open Big orders, low probability = open Small order. I upload a photo for you to learn more about this capital management method.

How to control emotions when using this strategy to trade at Olymp Trade

When you trade following the price, you can easily make the mistake of opening many orders at the same time. This is the difficulty you have to overcome. For example, if you’ve opened an Up but the price still continues to decrease, there is a high chance that you will open another UP immediately. When you open such orders, if winning you will feel cocky and if losing you will lose a lot. Another recommendation is to open reverse orders. Although they are only short-time and temporary orders, it can easily lead you to the psychology of opening consecutive reverse orders. In order to avoid both opening many orders at the same time and opening consecutive orders, you need to set the rules and follow them correctly. Whenever your emotions have problems, shut down your PC or app and do other things.

At the same time, the way to trade following the price needs to have feelings and experience. You need to understand the currency pair you are trading. For example, EUR/USD often creates candlesticks with small fluctuations in the Tue, Wed and Thu mornings. But it creates candlesticks with bigger fluctuations in the afternoon, especially when there is news. The probability of breaking levels (dynamic + static) in the afternoon will be higher than in the morning. Therefore, it is not always possible to apply only one type of method. For example: In the morning, you can use SMA30 + Support/Resistance. But in the afternoon, it may be SMA30 + Trendline.

A few examples of how to use short trades at Olymp Trade

A short session of 5 orders on the afternoon of May 23: 1 lose – 4 win for the account of $500, capital management of $5/order. This is a test account for traders who join the team of Olymp Trade Club website.

This is the trading result from the 23rd to the 27th of May. I don’t trade on Friday. I’ve explained it many times. On Monday, only open 1 or 2 orders for fun then stop. On Friday, only withdraw money, summarize and write articles. Absolutely don’t open any orders. Focus only on Tuesday, Wednesday and Thursday.

The above results correspond to each entry point below

Explain each entry point:

1st: The price fell and touched Support + crossed SMA30 = opened an UP with the expiration time in that candlestick.

2nd: The price fell and touched Support + crossed SMA30 = opened an UP => lose.

3rd: The price increased suddenly and crossed SMA30 + touched Resistance (is the previous Support line) = open a Down, the expiration time = the closing time of the candlestick.

4th: This is the order you must open. The price rose and crossed SMA30 + touches Resistance + broke the downtrend = open a Down => Prediction this candlestick has not passed the downward trend.

5th: Based on that this order was in the 10-minute chart. The price increased and broke the downtrend + touched the resistance zone = open a Down.

Do you have any ideas about how to use this strategy? Try and give me results. This week the group will continue to trade through 2 accounts: (i) $5,000 Olymp Trade VIP account and (ii) a new $500 test account for new members. Whenever the market is nice and it needs to be emphasized to create a habit for you to look and feel, I will write a review of the entry points.

In the near future, the group will make some fun trading clips. Meanwhile, we prepare some tasks to be able to live stream. I have a long trade and wait patiently style. Thus, if live streaming without any entry points to open, it would be very boring. Therefore, I will switch to some short trades. In order to in 30-minute live streaming, I can say, open orders and wait for the end of the expiration time, etc. Let’s enter the facebook group: Olymp Trade Club to watch.

Goodluck!

Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19