In this article, I will introduce to you how to open effective Fixed Time orders in Olymp Trade based on the signals of the Double Top pattern trading strategy. This is a pattern that is often used a lot in Forex trading. However, in Olymp Trade, you can completely use it to find exact Fixed Time transactions with small time frames.
What is a Double Top pattern?
If you have ever learned and traded Forex, perhaps the Double Top pattern is no stranger to you. This is one of the most popular reversal patterns in Forex. And if you have never known this pattern, we will learn a bit about it together.
A Double Top pattern is a type of reversal pattern from bullish to bearish. This pattern shapes like two equal mountains so it is called the Double Top pattern. The horizontal line connecting the bottoms of the pattern is called the neckline. This line acts as price support. When the price breaks out of it, the pattern is confirmed and the price will drop sharply afterward.
In trading, Double Top is favored by traders because it is easy to recognize and offers very accurate reversal signals. In some cases, after breaking out of the support level, the price may return to retest before plummeting. This is also a very good entry point for opening a DOWN order that you can take.
I have already had a detailed article on this pattern. If you want to learn more about the Double Top pattern, you can review it here:
Fixed Time Trading With The Double Top Pattern Strategy
As mentioned above, with a Double Top pattern, you may have 2 safe entry points. The first is when the price breaks out of the support and the second is when the price retests the support level. Compared with the break-out point, when the price retests, it will give a more accurate signal. However, the price does not always retest. Let’s analyze the trading orders below. Take a close look to fully understand how to open orders with the Double Top pattern.
How to open orders in Olymp Trade with the Double Top pattern
All orders were opened with the 5-minute candlestick chart. Opened orders with an expiration time of 15 minutes or above. In general, the signal that the Double Top pattern brings is very good if the market fluctuates not too strongly.
1st order: GBP/AUD currency pair. After breaking the neckline of the Double Top pattern, the price then retested with a Pin Bar with the tail pointing up. Opened a DOWN order. The result was winning.
2nd order: GBP/USD currency pair. This was still an order opened at the price retest point after breaking out and confirming the formation of a Double Top pattern.
3rd order: CHF/JPY currency pair. It was still another retest point that offered the correct signal. After adjustment, the price continued to decline strongly with a long red candlestick. This was a sure win order with a payout rate of 80%.
4th order: NZD/CAD currency pair. This was an order opened according to the break-out point of the price. As soon as the price broke out of the support level at 11:52 a.m, I opened an order with the expiration time ending at 12:05. As a result, the price plummeted after breaking out of support without a retest point.
Notes when trading with a Double Top pattern
It can be said that the Double Top pattern is a good trading strategy that you can use to open Fixed Time orders. Recognizing this pattern and how to open orders is easy to do. However, for each currency pair, the Double Top pattern appears not much.
Therefore, to be able to reach the desired profit, you can search for it in different frames and with many different currency pairs. However, be careful with Forex pairs with strong news. At these pairs, the signal may no longer be correct.
As soon as you finish reading this article, you can log into your Demo account in Olymp Trade to test the Fixed Time trading strategy with the Double Top pattern. Test it for a period long enough to convince you to trade real money with it.