Triple Candlestick Pattern – a simple way to trade but very effective at Olymp Trade
Simplicity and efficiency are always the top priority of successful people. It’s the same as trading at Olymp Trade. If you combine too many types of indicators in one model, it will be very confusing. But too few indicators don’t have a reliable probability. In case you’re looking for an easy way to trade at Olymp Trade effectively and simply, Triple candlestick pattern is very suitable for you.
What is triple candlestick pattern?
With this Olymp Trade trading method, you must use Japanese candlestick.
And 3 candlesticks here are 3 clear ones. It means that they are the most basic candlestick in Japanese candlestick chart. There are clear body and color. They are not a Doji or a Hammer you know. Thanks to that, the correct probability of this method is the highest.
How to play with triple candlestick pattern at Olymp Trade: when there are 3 consecutive candlesticks of the same color, open a reverse trade (bet the reversed color candlestick). For example, if an upward price chart creates three consecutive green candlesticks, open a Down trade (bet on the red candlestick). On the contrary, if a downward price chart creates 3 consecutive red candles, open an Up trade (bet on the green candle).
The rules of this game are very similar to the coin toss game. You toss the coin in the sky, the probability of getting heads or tails is 50/50. The probability of getting three consecutive tails will be 0.5 x 0.5 x 0.5 = 12.5%. So the probability of getting another tails is only 6.25% (extremely low). Thus, if you are playing a coin toss game and getting 3 consecutive tails in a row, from the fourth time on ward, you should bet on heads. The correct probability will be extremely high.
How to trade at Olymp Trade simply with Triple Candlestick Pattern
You know the rules, right? So basically, this coin toss game turns to a similar game: red and green game. That means you start betting on the candlestick color, not betting on the price. The question is: What color is the next candlestick? No one knows exactly. Only the probability of the next candlestick can be said.
How to enter the order: 3 clear consecutive candlesticks in the same red color => bet on green (Up trade). In contrast, 3 clear consecutive candlesticks in the same green color => bet on red (Down trade).
To trade correctly and completely a green candlestick, you must open the order at 00 or 01 seconds. This means that when the current candlestick is about to close, you will open an UP trade. See more at the article: Guide to trade Fixed Time Trade with Candlesticks color in Olymp Trade
What if you lose? You can open an additional trade after losing. Suppose you are betting on the green candlestick after 3 red candlesticks, but the chart still creates a red candle => appears 4 consecutive red candles. An Up order can be opened immediately afterwards (bet on the green candlestick again). If necessary, you can absolutely raise money for the following order.
Important notes when trading with triple candlestick pattern
The first is the news of the currency pair you are trading. If the market is affected by news, prices may only move in one direction. Therefore, you should be careful with this way of trade. Before starting a transaction, choose currency pairs unaffected by news.
You have to train your opening orders skill. Since you don’t bet on the price but on the candlestick color, the entry points only fall in the first seconds which are creating a new candle.
If you’re greed and increase money for the following orders, it means that the 1st order loses you continue increase money to open the 2nd order; the 2nd order loses and you continue increase money more to open the 3rd order. You should make for yourself a stop point. If there are no stop points, this method will most likely take all of your account’s money. Please pay special attention to this issue.