In this article, I will write all about downtrend in Olymp Trade. At the same time, I will demonstrate to you 3 great Forex trading skills in Olymp Trade. This article continues the series of earning $50 every day in 20 consecutive days with Olymp Trade.
Review on orders opened in Olymp Trade Forex on July 14
There were a total of 3 Forex orders opened: There were 2 wins and 1 loss. And this is the 6th consecutive day that I withdraw $50 from Olymp Trade. I hope this series of victories will continue, so I can share with you more useful knowledge.
How to trade Forex in a downtrend
A downtrend is the bearish trend of the market. Prices will continuously decrease over a certain period of time. And this is the time when your Forex trades will have a very high probability of winning.
You can review the details in this article: What Is Downtrend? How To Verify And Trade In A Downtrend
How to identify a downtrend in practice
There are 2 ways for you to identify a downtrend:
(i) The price falls, breaks out of the support zone, and declines => Establish a downtrend.
(ii) The market creates lower peaks after peaks and lower troughs after troughs.
Principles for Forex trading in a downtrend
Downtrend = DOWN order. This is the norm that you need to remember by heart.
There must always be a stop-loss. For me, the stop-loss is 30% of the investment amount (If my order is $20, the stop-loss will be $6).
How to trade Forex in a downtrend
This deems to be the safest signal for you to trade Forex. The price breaks out of the support and goes down. This starts a new downtrend.
There are 2 entry points you need to know:
(ii) The price breaks out of the support. This is how to open an order when the price breaks out
(ii) After breaking out of the support and going down, the price retests this zone. This is how to open an order when the price retests
To be sure, you should select (i) as the entry point to open orders. Because the price does not always retest. Sometimes, prices fall sharply and quickly during a downtrend.
Must-know skills for trading Forex in Olymp Trade
Skill 1: Scattering mines to explore
“Scattering mines” is the skill of opening a pending order in Olymp Trade. This is an effective tool but rarely used by traders.
Place a pending order when the price breaks out of the support
For example, on July 14, I placed a pending order. I opened a DOWN order at the price of 1.13649. The Stop-loss was $6. That means when the price reached 1.13649, Olymp Trade would open for me a Forex DOWN order. If the price bounced back, I would lose $6. And if the price kept falling, I would make a profit.
Why did I choose the price of 1.13649 to place a pending order? Because when the market touched this price level, it would most likely enter a downtrend. And in this order, I made over $40.
Skill 2: Adjust the stop-loss
I mentioned this skill once in my previous article: The Easiest Way To Make Money In Olymp Trade: Determine The Trend.
The same goes for the downtrend. Once the price has entered a DOWN trend, you should not set a take-profit. Just wait for the market to continue falling to optimize the profits. Your job is to adjust the stop-loss.
The more the price goes in line with the initial DOWN trend, the more your profits will increase. Therefore, to ensure this profit, you can adjust the stop-loss.
Skill 3: Continuous kicks
A downtrend is the bearish trend of the market. Prices will continuously decrease over a certain period of time. At the same time, the market creates lower peaks after peaks and lower troughs after troughs. Therefore, you can absolutely wait for signals to open many DOWN orders in a downtrend.
For example, When the price breaks out of support and goes down, open (1) a DOWN order. The price continues to go down and creates a retest signal. Place another (2): DOWN order. If the Downtrend trend sustains, you can open Orders (3), etc. This is the “continuous kicks” skill for you to take advantage of a downtrend and make money in Olymp Trade.
The last line
I used to have a habit of writing down theory before going into practice. You can capture, understand, and review yourself on a Demo account. It’s also one of the most important Forex trading skills I’ve learned through my experiences.
So, you may have grasped all the basic theories about Uptrend and Downtrend. And let’s review what we have learned today.
- A downtrend can be identified in two extremely simple ways: (i) The price breaks out of the support and goes down creating a downtrend and (ii) the market creates lower peaks after peaks and lower troughs after troughs.
- In a downtrend, we are only allowed to wait for signals to open a DOWN order.
- If you predict that a downtrend is about to take shape, you should open a DOWN order in Olymp Trade Forex to explore the market.
- Always set a stop-loss when trading Forex.
- 3 Forex trading skills in Olymp Trade: Pending orders, adjusting the stop-loss, and opening orders continuously when the trend is correct (Continuous kicks). You need to practice them regularly.
I have finished the 6th article in a series of consecutive making money in Olymp Trade for 20 days. You can read the series of articles here:
- How to make $1,000 in Olymp Trade: Safe, stable, and easy to carry out.
- 5 Basic Principles When Trading In Olymp Trade (Part 1/20).
- 4 Things To Prepare Before Starting Trading In Olymp Trade (Part 2/20).
- The Easiest Way To Make Money In Olymp Trade: Determine The Trend (Part 3/20).
- Unbeatable trading strategy in Fixed Time Trade: Trend + Signal? (Part 4/20).
- Practice trading in Olymp Trade easily and safely: Uptrend + Retest (Part 5/20).