Today, I will introduce the Axel VIP trading strategy in the top votes of Olymp Trade. It is no coincidence that Axel sits in the top rank. It is considered the most profitable trading strategy for investors to use. So what are you waiting for without trying to find it out because maybe it will suit you?
This is a trading strategy built around the Momentum indicator. So let’s see what that indicator is.
What is the Momentum indicator?
The Momentum indicator is a line that fluctuates in a range of about 100. Each new value is defined depending on the current values and the values of some previous periods (usually 10-14 periods). It reflects trends and measures the rate of change based on a comparison of present and past values.
Knowing whether a market trend will continue or end, a trader can predict the strength behind the trend.
Momentum indicator statuses to be noted in the Axel trading strategy
It’s when the indicator intersects the 100 line. In general, if this indicator rises above 100 during an uptrend, it is considered a positive signal. If this indicator falls below 100, the signal is considered a downtrend.
It’s when it exits zones of fluctuations. Circumstances in which the indicator reaches abnormally high or low levels confirm the strength of the trend. However, they can also be a sign of an overbought or oversold asset.
It’s when there is a difference between the indicator volatility and price. If the price reaches a new high, but the indicator is trending down, that means weakness of the uptrend. On the other hand, when the price falls to the minimum, but without indicator volatility, this could be a sign of an imminent change in the downtrend.
How to use Momentum indicator in the Axel trading strategy in Olymp Trade
The Momentum indicator is used in various strategies, including trend tracking and trend reversal. This Momentum indicator is applicable on many different time frames with high accuracy. This allows traders to predict future trends to open orders with a high probability of winning for their profits.
Conditions to set up the Axel trading strategy
- A 1-minute Japanese candlestick chart
- Currency pairs with the minimum profitability of over 80% as follows: AUD/USD, USD/JPY, GBP/USD, EUR/USD, etc.
- Momentum indicator
Open an “UP” order when the “yellow” signal line crosses the 100 line from below.
Open a “DOWN” order when the “yellow” signal line crosses the 100 line from above.
Axel is a simple trading strategy that is very effective. So it is part of the updated strategy on the Olymp Trade platform.
If you are having a headache in finding an effective strategy, then the Axel strategy can be the best advice at the time. Do not be subjective and ignore testing it. First, apply it to your Demo account for a while to understand the pros and cons. From there, you can draw your own trading experiences and use them better.