In order to start making money trading with a broker Olymp Trade, you need to be able to correctly predict the future price movement. In order to do it constantly and with a big chance to get a positive outcome, you need a strategy.
In trading without a strategy, your results will always be 50/50. Given the fact that with a positive forecast we get the profit of 80%, and with a negative forecast we lose 100%, our trade at a distance without a strategy will have a negative result.
If you work according to the strategy and constantly follow its rules and rules of the trading plan, then this will increase the chance of a positive outcome of the majority of transactions and will bring us a profit at a distance. Having approximately such a graph of profitability:
Of course, there will be losses and drawdowns during trading. Don’t worry about it, because it is part of trading. The main thing is to get more positive transactions than negative ones in a month, quarter, year.
I make only one deal per day. Yes, yes … making just one deal per day, you can earn quite good money. An amateur should remember, when trading options, and not only them, quality is important, but not quantity. A lot of deals does not mean a lot of profit.
If I don’t see a signal that fits my strategy during the day, then I just don’t trade, I’m waiting for the next day. Do not trade just to put in an appearance.
The market is active 24 hours a day from Monday to Friday. Therefore, you will always have time to find a suitable signal.
When trading on Olymp Trade platform, I use a very effective strategy.
Trading strategy from support and resistance levels
This is a very effective strategy that I have been using on Olymp Trade for a long time. It is based on support and resistance levels, supply and demand zones.
Levels along with trends are the basis of technical analysis and are very popular in the preparation of most strategies.
Support level is the price level at which bulls (or buyers) enter the market. Support is always at the bottom.
Resistance level is the price level at which bears (or sellers) enter the market. Resistance is always at the top.
When the price comes to a significant level of support or resistance, I watch it carefully. I am waiting for the moment when the price will demonstrate its refusal to move in the current direction. For me, this moment means the formation of a pin-bar candle on the chart.
Pin-bar is a candle with a small body and a long tail, it indicates a possible trend reversal.
That’s how it looks like:
Bear pin-bar gives a signal to sell, and bull pin-bar – to buy. The presence of such a candle near the level gives a great chance to make a deal with a high success opportunity.
An example of trade from the levels on Olymp Trade platform
Now, let’s see how to apply this strategy in practice.
Step 1. For example, let’s take a chart of the AUD USD currency pair. We open a clean chart. Then set the | of 1 hour.
Step 2. We are looking for maximums (to build resistance) and minimums (to build support) on the chart. Noted.
As you can see, those places of price reversals, which we have just noted, are approximately at the same level. Now it is possible to draw support and resistance levels on the chart.
The resistance level is set for the price 0.74300. At this point, buyers and sellers are fighting.
Step 3. Support and resistance are built on the chart, now we only should wait for the signal to buy or sell in these places. As you remember, the signal to enter the deal is a pin-bar.
A few hours later, a bear pin-bar appears in the resistance zone, indicating a possible price reversal.
Step 4. Go to the Olymp Trade trading platform and set the transaction time of 3 hours. According to the rules of money management, we should set the transaction amount – 5%. A maximum of 10% of your deposit. And click “Down”.
Step 5. After 3 hours, as predicted, sellers began to push the price down and the AUD USD rate began active falling.
As you can see, the level + pin bar gives good results in options trading.