How to set up and use Friday trading strategy in Olymp Trade

How to set up and use Friday trading strategy in Olymp Trade

For those who like to buy discounted goods, it is definitely impossible to ignore “Black Friday”. On that day, you can get quality items at affordable prices. Today, the strategy that I want to introduce to you is also called Friday – a trading strategy in the VIP strategy section of Olymp Trade. Now let’s go into the detailed analysis of how to trade.

Because the Friday trading strategy is largely built by the EMA indicator, I will dive into it for you to easily grasp how to trade.

What is EMA indicator?

EMA indicator is one of the two most commonly used Moving Averages (MA).

EMA belongs to a group of indicators that are very popular in technical analysis. It helps to determine the weights of the most recent data. With that calculation formula, it helps to make the correct path compared to other simple MAs.

What is EMA indicator?
What is EMA indicator?

The role of EMA in the Friday trading strategy

EMAs are widely used in Forex trading. It is because EMA will be more sensitive and closer to the price with less lag. This helps traders to react faster to price trends and not miss trading opportunities.

Determine the trend of the market

EMA5, EMA13, EMA55 correspond to the trends of the market in the short, medium, or long terms.

If the price path cuts the EMA5 from below, it indicates a short-term uptrend. And if it crosses the EMA5 from above, it predicts a short-term downtrend.

If the price path cuts the EMA13 from below, it indicates a medium-term uptrend. Conversely, if it crosses these lines from above, it predicts a medium-term downtrend.

If the price path crosses the EMA55 from below, it will signal a long-term uptrend. And vice versa, it will predict a long-term downtrend if the price path crosses this line from above.

Determine the market trend
Determine the market trend

Trading with the trend gives less risky results than when you trade against the trend.

Help determine entry points

For an uptrend, the EMA is sloping up and the price is above the EMA. If the price pulls back and touches the EMA, traders should open UP orders according to the uptrend.

For a downtrend, the EMA is sloping down and the price is below the EMA. If the price rebounds and touches the EMA, traders should open DOWN orders according to the downtrend.

Identify support and resistance zones

In a long-term trend, if the EMA is sloping up, it indicates an uptrend as the price is above the EMA55. At the time the price retraces to this line, this will become the moving support zone.

Conversely, in a long-term downtrend, the EMA55 is sloping down and the price is below the EMA55. At the time the price bounces up and touches this moving average, this line will be the resistance zone.

The same goes for support and resistance levels in medium and short-term trends.

Identify support and resistance zones
Identify support and resistance zones

How to set up the Friday trading strategy in Olymp Trade

First, go to the “Indicator”, click on the “Strategy” tab and choose “Friday”. So you have completed setting up the Friday trading strategy. It consists of 3 EMAs:

  • EMA5
  • EMA13
  • Finally, EMA55
The Friday trading strategy in Olymp Trade
The Friday trading strategy in Olymp Trade

How to open orders using the Friday trading strategy

This is a reversal trading strategy based on 3 EMAs. Therefore, when the short-term EMA crosses with the long-term EMA, it is a signal to enter a trade. We will have the following principles for opening orders with the Friday trading strategy:

Open an UP order when EMA5 crosses EMA13 and EMA55 from below.

Open UP orders with the Friday trading strategy
Open UP orders with the Friday trading strategy

Conversely, open a DOWN order when EMA5 crosses EMA13 and EMA55 from above.

Open DOWN orders with the Friday trading strategy
Open DOWN orders with the Friday trading strategy

Conclusion

Above is the information and how to trade with the Friday trading strategy that I have presented specifically. If you understand its nature as well as how to use it, then, obviously, profits will find you.

However, you need to practice it on a Demo account to understand its strengths to fully exploit it. From there, you can minimize the risk to improve profitability in investment.

See you in the Friday trading strategy review.

How to set up and use Friday trading strategy in Olymp Trade
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