In Olymp Trade, candlestick colors trading is a very effective trading strategy for short-term orders. The effectiveness of this strategy is fixed. One of the 2 most important factors is time. The trading problem becomes simpler when you just need to guess if the exchange rate will remain or change only.
So what is the trading strategy following candlestick colors? How to make transactions following candlestick colors? Today, I will share it all with you through this article.
Video on how to trade using 1-minute candlestick colors in Olymp Trade
How to trade in Olymp Trade using 1-minute candlestick colors
I would like to repeat the trading strategy using candlestick colors. It means betting on the color of the future candle. If you guess correctly, you are profitable. If you guess it wrongly, you lose your investment. You should do as follows.
Conditions. The 1-minute Japanese candlestick chart.
Step 1. Set up the time and amount of money for trading
In this step, you need to set the expiration time of 1 minute. It is exactly equal to the candle time period. As for the capital, it depends on the chosen capital management method.
Step 2. Open orders using candlestick colors
At this step, you need to focus on the observation. At the moment the price has just completed the current candle and continues to start creating a new candle, you open an order.
+ Open an UP order when you guess the next candle to be green.
+ Open a DOWN order when you guess the next candle to be red.
At that time, the expiration time is exactly equal to the candle time period (exactly 1 minute).
Step 3. Observe trading results
After opening an order, you only need to see if the candle color is correct to your prediction.
If you guess correctly, you will get a profit. Unless, you lose your investment. It is very simple.
An order following candlestick colors is opened correctly when the entry point coincides with the moment when the price creates a new candle.
Pros and cons of the trading strategy using 1-minute candlestick colors in Olymp Trade
- It eliminates the time factor in trading. Sometimes you guess the rate correctly, but the expiration time costs you money. This strategy completely gets rid of this factor.
- It limits the bad habits of traders such as stuffing orders or increasing investment amounts. With this trading strategy, after opening an order, you can only sit and watch out for the results.
- There is little time to decide whether or not to open an order. This is a weakness of this strategy.
- It requires the skill of opening a correct order from the trader. Sometimes, prices fluctuate dramatically at the time of creating a new candle. If the trader opens an order incorrectly, it may lead to the ineffectiveness of the strategy.
This is really an effective and very popular strategy among experienced traders. Practice right on a DEMO account today to master this effective trading strategy.