Each technical indicator has its own way of using. If you master and properly combine them with other technical indicators, they will help you to further improve the quality of your strategy as well as your trading results. In this article, I will introduce to you a complete trading strategy in Olymp Trade using the Key Level and SMA30 to find the best entry points possible.
Trend – the origin of victory
Most traders know that the trend is what makes it easy for them to win. Therefore, every effective trading strategy is closely tied to the trend (i.e opening orders according to the trend).
However, even when they see the current and future trends of the market, there are still a lot of traders struggling to find the right entry point. And when you choose the wrong time to open an order in a trend, the loss will happen.
Finding out where a trend begins is something experienced traders often do. Because it helps you to have a starting point with many advantages over other strategies.
You will be able to seize opportunities sooner while everyone is still trying to find trading signals. It is not too difficult to do that, but you need to know how to combine the indicators. This will help provide accurate signals when a trend begins to form.
Breakout – The perfect trend-following entry point
In stronghold offensive battles, when the last defense is broken, the next attack will be stronger and more fierce. It is the same in trading. When the price starts to break out of key levels, the advantage is tilted in favor of either the bulls or the bears.
If the bulls control the situation, the price will continue to move up strongly. As the bears overwhelm, the price will quickly plunge. Once you realize which side is driving the market, what will you do to profit yourself?
Simply, when the bulls win, just open UP orders in the same direction as the uptrend. And when the bears have the upper hand, we just need to open a DOWN order following the downtrend. However, to be able to recognize a good breakout point, you need to combine the Key Level and the SMA30 indicator.
Right now, I will show you how to use the above 2 indicators to identify your entry points with a high probability of winning.
The trading strategy in Olymp Trade when combining Key levels with SMA30
The Key Level is an important point where the price will react strongly once it passes that point. Therefore, when the SMA30 starts to approach the important price zone, it’s time to pay attention to it. When the breakout happens, it’s time to take action.
- When the upwards SMA30 crosses the Key Level, at the intersection, you can safely open an UP order. This is because of the high probability that the price will continue to increase, forming an uptrend.
- When the downwards SMA30 crosses the Key Level, the intersection is when you can open a DOWN order with a high win rate.
Now, let’s go into the practical part after a brief reference to the theory.
Review good trading orders opened when combining the Key Level and SMA30
First, you need to define the Key Level (green) on the weekly candlestick chart and the Near Key Level (pink) on the daily candlestick chart
Trading currency pair: EUR/USD
Balanced investment (Classic): $500 each
1st order: At the EUR/USD pair on March 17, the price started to rise above the Key Level. At the same time, the SMA30 crossed it from below decisively. It was eligible to open an UP order with a 45-minute expiration time.
2nd order: At the EUR/USD currency pair on March 20, the price formed an uptrend. At the same time, the upwards SMA30 crossed the Key Level from below. It was a safe signal to enter an UP order with an expiration time of 45 minutes.
3rd order: On March 22, the EUR/USD pair was trending up. The price and the SMA30 crossed the Key Level of the weekly candlestick chart. It was the clearest signal to place an UP order as soon as they intersected.
The Key Level is a very important price zone right at which the price reacts clearly to help you predict future trends. However, you need to wait patiently for the right opportunity to trade. And that is what you need to best practice on a Demo account.
This is to help you choose for yourself the entry point with high accuracy and profitability. I hope you make a lot of profits with the Olymp Trade trading strategy using the Key Level and SMA30.