If you are looking for a simple Fixed Time Trade strategy that is still full of momentum and trend indicators, this is an article you should not miss. Today, I will share with you the secret to trade better when combining the RSI indicator with 2 Moving Averages (SMA & EMA) in Olymp Trade.
The secret to success – Choose simple and essential indicators for trading
When you go to the indicator section of Olymp Trade, there will be many indicators displayed attractively like a buffet. If you choose all the delicacies, then I’m sure you will overeat. It’s best to just choose the most essential foods to get the energies and vitamins you need.
It’s the same for trading. If you put too many indicators on your tiny trading screen, it is very easy for you to lose money than other traders. It will cause you to encounter many bad opportunities and miss good ones.
That’s why we will choose the Relative Strength Index (RSI) indicator to see how the price momentum is. Next is to determine the current trend by the Moving Average. These two are reliable enough for you to trade in the best way.
How to set up RSI indicator and 2 MA
To set up these 2 indicators Olymp Trade, you first need to go to the indicator section and select SMA, EMA, and RSI respectively as shown below.
Then customize as follows:
– Relative Strength Index 16
– Simple Moving Average 18 (SMA – blue)
– Exponential Moving Average 7 (EMA – red)
When you complete the above steps, you will get the interface as shown below.
How to enter a trade with RSI indicator and 2 MA
If you want to get a high win rate with this strategy, the following signals are needed:
The 1st signal is when the RSI cuts the 30 (oversold zone) from below. Wait a little more for the 2nd signal when the EMA (red) crosses the SMA (blue) from below. Then open an UP order.
The same goes for the DOWN trade. The 1st signal is when the RSI indicator cut the 70 (overbought zone) from above. After that, the EMA also crosses the SMA from above.
Note: Observe with the 1-minute Japanese candlestick chart. Open a trade with an expiration time of 5 minutes or more.
How to control money with this strategy
As mentioned in many previous posts, with a strategy that has an average win rate of over 60%, you will definitely make a profit when using the Balanced money management method.
According to my statistics, the win rate of this trading strategy is about 65-75% on 30 test orders. So if you use the Balanced management method, the safety is very high.
If you are a trader who likes a strategy that is both simple and effective, this is the right choice for you. It does not need too many conditions to open an order but still gives a high win rate.
Remember, before using any strategy to making profits in Olymp Trade, you need to have experienced it long enough to understand where the market’s opportunities are. Thus, let’s try on the demo account how to use it without losing a single penny.
Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19