The 3 candlestick strategies in Olymp Trade
“Complexity does not mean any benefit”.Some people seek the most complex strategies and think they are the most effective. But I asked; why complicate things that might be easy? Some very good strategies are very simple and do not require additional indicators. Using too many indicators may be distracting, and you don’t want to do that. I want to show you one of these simple strategies: the rule of three candles.
3 CANDLESTICK RULES- OVERVIEW
Since the name has been implemented, this strategy requires candles. So the chart you need to set is a Japanese candlestick. It works best here. Our focus is candles. In order for the three candlestick rule to be effective, the three candlesticks must be expanded in sequence. In addition, they should not have bright spots, or the bright spots are very short. This makes the strategy more reliable. Your job is to follow candles and spot trends. When we talk about an uptrend, the candle is green. When you see a downward trend, they will turn red. Now we only need to wait for three consecutive candles of the same color to appear next to the trend. After the third candle is formed, it is time to trade against the trend. The next candlestick may be a different color. The rule of three candles is based on probability. How to toss a coin. For the first time, the odds are heads and tails are 50/50. But when it comes to heading up the ball for the first toss, the chance of heads for the second toss drops to 25%. Since the heads will continue to fall on the third attempt, this time it will be 12.5% and they will sink every time they throw. This is how our strategy works. If there are 3 candles of the same color, it is very unlikely that the fourth one will be the same color. So you are going against the trend.
3 CANDLESTICK RULES AND THE OLYMP TRADE
Then look for the dominant candle. Green means an upward trend, and red means a downward trend. You don’t even have to worry about the price, just worry about the color of the candle. Your goal is the color of the expected aluminum candle. Just like tossing a coin, predict whether it will be heads or tails. Your judgment is based on the first three candles. If you see three green candles, you expect the next one to be red. If three consecutive candles are all red, the probability of the fourth one being green is also higher. You can get many trading signals from 3 consecutive candlestick strategies.
You need to enter the trade at the end of the third candle, which is the time when the fourth candle begins to form. If three red candles appear in a row, you should go long. With continuous green candles, you need to open a short position. The probability of winning is quite high. But what to do when you lose let’s play together. Do you remember the probability of getting heads for each pitch? It’s the same here. Imagine that you see three green candles in a row and you do not have enough money. But you failed. The fourth candle is still green. Open another short candle. Position at the beginning of the fifth candle, and so on, until you win
The bid to apply the three candle rule on the Olymp Trade
Don’t trade emotionally. When you realize that you are afraid of losing or need to increase your investment amount after losing, the best way is to suspend trading, take a deep breath, and wait for another opportunity. These three mean more. Continuous candles of the same color. Now all you have to do is try the rule of three candlesticks for yourself. Remember, since you are still learning to use this strategy, you are likely to lose the first few times. This is not a panacea for instantly enhancing balance. However, Olymp Trade does provide a free demo account so you can practice without risking it. You can also share your experience with us in the comments section at the bottom of the website.