Olymp Trade & Use of Famous Indicators

Indicator as the word says itself, it is used for guidance or pointing. Imagine you are a newbie in trading market and have basic knowledge of charts, indicators at these points will help you to decide what is the correct time of trade and will give you many more suggestions.

Are you having a difficult time in making trade at Olymp Trade? Many forex traders waste their time to get one specific time to open trade, but in truth there is no one time or one way to enter the forex trading. Here at this point you can use variety of indicators that will help you in predicting the perfect time to open trade.

Olymp Trade and SPT

Famous Indicators in OT

Forex trading platforms offer variety of indicators, here we will discuss the famous indicators that every forex trader should know before trading. We will discuss the famous indicators that are available at Olymp Trade and how to use them. Some of the famous indicators are:

1.      MACD Indicator

2.      RSI

3.      Moving Averages

4.      Bollinger Bands

5.      Stochastic oscillator

MACD Indicator

It is a momentum oscillator with two moving average lines each having different settings and a histogram with dynamic columns. These elements sum up in the result and shows the strength of current trend. It is reliable and versatile tool for traders. MACD indicators show 3 indicators at once and is most suitable for currencies pairs with 90% of successful transactions. The best advantage of MACD is that is shows the trend reversal, in easy words ascending and descending with working on line chart and on a candlestick chart.

RSI (Relative Strength Index)

RSI was developed by J. Welles Wilder, and it measures a security’s recent performance in relation to its price range over a set period of time.

RSI gives the accurate signal open the trade at real time. RSI have following prominent features:

·     Ideal for short duration deals (5-15 minutes)

·        Also works on trend reversal 

·        User will have good results on currency pairs EURUSD, GBPUSD, EURJPY.

With the changing currency pair prices, the price change curve is usually located in the trade corridor, which results in price going outside the limits of the trading corridor. RSI is useful to identify periods when an asset has gone beyond the limits of trading corridor. RSI helps in measuring the magnitude and duration of recent price movements in the trading market.

Moving Averages

We can consider this as one of the most famous indicators used in OT. It indicates about the current trends and help in making the correct decision of buying or selling in trade. It is a technical analysis indicator that helps traders in identifying the direction of the trend. Moving average chart is result of average of prices over a specific number of days that can vary from 14 to 20 days. Olymp trades offers two types of Moving average indicators.

https://www.mouthshut.com/blog/jdfgnrttqo/Olymp-Trade-Indicators-and-Oscillators-Trade-Smarter-With-Toolspage

·        SMA (Simple Moving Average) is the most popular type of moving average which is also called as linear moving average (SMA) which takes each price and divides it by the total number of prices used in the calculation to get an equal weighting. You can customize the SMA as per your requirements. To Increase the efficiency of trading strategies, you can use two moving averages SMA with different time periods: 60 for slow SMA and 4 for fast SMA. 

 

·        EMA (Exponential Moving Average) and SMA use the same formula for developing the charts but the difference comes where EMA sends more accurate and faster signal. It also helps in finding the trend strength and its reversal points. Here is a pro tip for trade “Follow the direction of trend to win more”.

Bollinger Bends

It was developed by Jogn Bollinger in 1980s. Bollinger bands is the combination of trend oscillators which gives the most oversold and overbought markets phases. It can be used to calculate the volatility of an asset. This indicator consists of three bars one on the top shows the highest trading price at current time, the middle bar shows the average value and the lower bar represent the lowest price of trade at current time. When prices move close to the upper or lower band, it means they are becoming more volatile and may signal a change in trend. If it is closer to the lower line then there are possible chances of trend reversal in future and will move in upward trend.

 You can use this strategy in effective way on following three assets:

1.      Raw materials like gold, silver and oil

2.      On currency pairs for example, EUR / USD, GBP / USD, USDCAD, USDCHF, EURJPY.

3.      On the promotions used at Google, Apple, Coca-Cola, IBM, Tesla.

Here is a Pro tip “Use this indicator & Japanese candlestick chart with a time frame of 5 to 15 minutes results will be in your favor”.

 Stochastic

This indicator gives the current level of buying and selling pressure. In simple words, it tells us when the market is overbought or oversold. The stochastic oscillator comes in ranges from 0-100 on the chart, if the reading is above 80 then the markets is in overbought state and if the reading is below 20 then the market is in oversold state.

As Seen in the picture there are two lines representing the overbought and oversold conditions in the market. Red line the signal line and blue are the confirmation line.  Always pay attention when they are either above 80 or below 20.

If the red line goes above 80 it means that overbought state is her and there will be a decrease in prices. On the other hand, if the signal line is below 20 then it is oversold state and prices will increase.

We can sum up above two lines as whenever these lines cross each other or when they are near extremes in either direction, it indicates possible changes in trend.

These indicators have made trading easier for many traders worldwide as their correct use can help you identify the best entry and exit points for any trade and thus, help maximize your profits.