As in the previous post, I promised you that there would be a review on how to open long-term orders with the Heiken Ashi candlestick chart in Olymp Trade, then that promise will be fulfilled in this article. Besides, there are also some pieces of advice on “the look” in the forex market. This helps you figure out which entry points are reasonable and which is not appropriate.
- 1 Perspective is what distinguishes good or bad traders
- 2 Does long-term orders offer a higher probability of winning than short-term ones?
- 3 It is recommended to test for a long enough period before applying
- 4 Choose the things that complement each other best
- 5 Review good entry points with the Heiken Ashi candlestick chart in Olymp Trade
- 6 To conclude
Perspective is what distinguishes good or bad traders
Do you often confuse the number 6 and number 9 in everyday life? I’m sure everyone mistakes one number with another sometimes. With different perspectives, it is obvious to produce a different result. In trading, if you are confused, the price you pay is the amount of your investment. Therefore, people with an overall “look” of the market will easily make a profit than people who never care what it is.
Don’t think that only experienced people would have good perspectives and good trades. It is as simple as your preparation to enter the market. These include trends, levels (support/resistance), and trading signals.
You can easily lose money without identifying a trend. Trading against the trend is a fatal mistake in Forex investing. Therefore, you need to be aware of whether the market is currently bullish or bearish.
The random opening of orders without obvious conditions is no different from gambling. Therefore, identifying support and resistance levels is something that every trader must know. Because there, your predictions have the highest probability of winning when you know how to use them.
As for the entry signal, each trader has different rules for opening orders. However, they should be a must for you to choose the best entry point.
Does long-term orders offer a higher probability of winning than short-term ones?
If a long-term order offered a higher win rate, no one would be foolish to open short-term orders. They (traders) would all switch to long-term orders to make money easier. In my opinion, in Fixed Time Trade, speed is something you need to adjust when you want to be profitable.
As for trading long-term or short-term orders, it depends on the trading strategy you build. If someone tells you that “trading time” is the key to success, you should read my shares in this blog to better understand that concept.
Do not die of ignorance while keeping your eyes closed and entering long-term orders. If so, as a result, there will only be the loss numbers appearing eliminating your “dreamy” expectations.
What you need is to determine which trading time suits your strategy best. From there, choose a suitable expiration time so that when the signal comes, it is time for you to take action. Do not restrict yourself to a certain framework just because other people say that it is this way or that way. All should stop at the reference level when you have never experienced it.
It is recommended to test for a long enough period before applying
You will need to use a Demo account as it will help you apply your trading strategy in the real market without incurring any risk. You can learn from experience to improve so as to achieve the highest win rate. That is when you take real money to invest in Olymp Trade to make a profit. But remember that real money makes you feel real.
Sometimes, the statistical work makes you very uncomfortable. But later on, you will be very happy when it helps you make a lot of profit during the trading process. Sweet fruits will be what you reap after a long time. Do not pay too much attention to quick profits as it is not stable.
No matter how perfect your money-making strategy is, the first thing you should do is to achieve the best preliminary assessment before putting it to use. In trading, everything has to be absolutely correct. Just the slightest mistake can lead to physical and mental downfall.
Choose the things that complement each other best
For the best taste when enjoying French food, wine is indispensable. Or KFC is often combined with Coca-Cola or Pepsi, not anything else. It is simply because when they combine, they create the best taste ever.
In trading, too, the Heiken Ashi candlestick chart is usually biased towards long-term trend trading. Therefore, the combination with trend indicators will give extremely accurate predictive results. It helps you have many opportunities to make money in Olymp Trade easily.
There are many indicators integrated into the Olymp Trade trading platform. What you need to do and have to do is to choose for yourself one or two indicators to combine with your trading strategy in the most effective way. Once you have obtained positive results that bring a win rate of over 75%, then it is time to cash down.
Review good entry points with the Heiken Ashi candlestick chart in Olymp Trade
Conditions: The Heiken Ashi candlestick chart and SMA30 indicator
Trading currency pair: EUR/USD
Capital management: Evenly
Expiration time: 30 minutes or more
Due to trend trading, I divide it into 2 parts to give you a broader view.
Breakout trading with the Heiken Ashi candlestick chart
1st order: It was at the EUR/USD pair on February 8th in the Asian session, The entry signal was when the price broke out of the support zone and cut the SMA30 from above. Opened a DOWN order with a 30-minute expiration time immediately after the candlestick closed below the support zone and the SMA30. The result was winning and brought about 70% of profits.
2nd order: Still at the EUR/USD pair, after having the first win, I patiently waited for the signal to enter the next order. Finally, it appeared when the 2 Heiken Ashi candlesticks changed from red to green, indicating a reversal of the trend from bearish to bullish and the price cut the SMA30 from below. Opened an UP order with an expiration time of 30 minutes as soon as the reversal pattern was confirmed and the candlestick closed above the SMA30.
Trend trading with the Heiken Ashi candlestick chart
3rd order: At EUR/USD, on February 11, the Asian session was in an uptrend when the Heiken Ashi candlestick chart was above the SMA30. The entry signal was a set of bullish reversal candlesticks (from red to green), signaling the end of the bearish adjustment. Besides, the price also touched the SMA30, which was seen as a dynamic support. Opened an UP order following the trend with a 30-minute expiration time when trading conditions were met.
4th order: The uptrend still insisted after the 3rd winning order. The price started a pullback and a bullish reversal candlestick pattern (red to green) ended the price pullback. Opened an UP order with an expiration time of 30 minutes when the candlestick pattern completely appeared.
Don’t assume that it works as seeing my review with 4 consecutive winning orders. All is just probability. However, if you trade long-term positions you will have a high probability of winning. With the trading strategy using the Heiken Ashi candlestick chart combined with the SMA30 indicator, the winning rate statistically (by me) falls in the range of 70% – 85% – a number that is worth your attention.
Maybe for me, it would be very easy having done one thing over and over for 5 years. For you, the most difficult part is the patience of waiting for a really clear signal. Fix it by trading on a professional Demo account. Do not impatiently rush into the market before taking certain advantages.