Amazing Trading Strategy with Olymp Trade Using Composite Indexes
The word “composite” in the title simply means this Olymp Trade method reads several indicators together rather than trusting any one in isolation. It layers two Exponential Moving Averages (EMAs) with the Parabolic SAR on a very short chart, with the idea of taking a short-expiry position only when all three agree on direction. “Amazing” is a title label, not a description of results: EMAs and Parabolic SAR are both lagging indicators, so on a five-second timeframe they react after the move has already begun and they misread choppy, range-bound conditions often. Treat what follows as a framework to study and test, not a shortcut, and read the risk section before you risk a cent.
What the Indicators Actually Measure
An EMA is a moving average that weights recent candles more heavily than older ones, so it turns faster than a simple average. Plotting two EMAs of different lengths lets you read momentum from the gap between them: when the faster line pulls away from the slower line, the current push has strength; when they sit close together or tangle, the market has no clear direction and signals become unreliable. The Parabolic SAR prints a trailing dot above or below price and is designed to flag when a trend may be pausing or flipping. None of these tools predicts the future — they summarise what price has already done, which is exactly why confirmation and patience matter more than the signal itself.
Reading the Trend
Before taking any position, decide whether the short-term trend is up, down, or simply undecided, and skip the undecided ones. Work across a few liquid currency pairs rather than forcing a trade on whichever chart is in front of you.
- Possible up-move: the two EMA lines are clearly separated and price crosses above the slower (red) EMA. That alignment suggests upward momentum may continue into the next few seconds — it does not promise it.
- Possible down-move: the EMAs are separated to the downside and the Parabolic SAR dots flip to sit above price, above the yellow EMA line, hinting at continued weakness or a reversal lower.
- Stand aside: the EMAs are flat and intertwined, the SAR is whipsawing dot-to-dot, or the indicators disagree. A flat, tangled chart is the most common place these short-expiry signals fail.
How to Set It Up
Open Olymp Trade on a fast, liquid pair and add the two EMAs plus the Parabolic SAR to the chart. Use a fast and a slow EMA so the separation between them is easy to read at a glance, and keep the Parabolic SAR near its standard step and maximum values so it does not flip on every tick. Wait for a candle to close and for all three tools to point the same way before you act — taking the trade mid-candle is where most rushed entries go wrong. Because chasing every arrow burns through a balance quickly, the single most useful habit is to skip far more setups than you take.
The exact indicator values are part of the paid Olymp Trade tool bundle, alongside additional signals, strategies, alerts and Quickler/OTC setups.
Managing the Real Risk
Five-second binary trades are extremely high-variance: the expiry is so short that noise, spread and execution timing can decide the outcome regardless of your read, which puts this style closer to gambling than to analysis. Protect yourself with rules, not hope. Stake a small, fixed fraction of your balance on each position, cap how many trades you take in a session, and stop for the day once you hit a preset loss limit. No indicator removes losing trades, so aim for calm, repeatable decisions rather than one big result. Practise the whole routine on an Olymp Trade demo account until the reads feel automatic before you ever risk real money.
If you want to study the individual pieces, see the dedicated write-ups on using only 2 EMAs on Olymp Trade and on Parabolic SAR reversals on Olymp Trade, or step up to a calmer expiry with the Olymp Trade 5-second strategy guide.
FAQ
Is this strategy guaranteed to work on Olymp Trade?
No. EMAs and the Parabolic SAR are lagging indicators that describe past price, not future price. They point out setups worth considering, but false signals are normal — especially on very short expiries. Consistent risk management, not any single signal, is what keeps you in the game over time.
Are five-second trades a good place to start?
They are one of the hardest, highest-variance ways to trade because the outcome is dominated by short-term noise. If you are learning, a slower one-minute expiry gives the indicators room to breathe and is far more forgiving while you practise the reads.
Where do I get the exact indicator settings?
The precise EMA and Parabolic SAR values used here are bundled with the paid Olymp Trade tools, which also include extra signals, alerts and Quickler/OTC setups. You can see what is included on the $39 lifetime plan page.
This content is for educational purposes only. Trading involves risk. Past results do not guarantee future outcomes. Always practice responsible money management and limit your daily trades to avoid large losses.
