Olymp Trade – Moving Average Strategy

Olymp Trade Moving Averages Strategy: How to Trade with Confidence

We have strategy using moving averages on Olymp Trade. If you want to improve your short-term trading results, especially with 5-second Heiken Ashi candles, this method will help you spot potential trend moves within 30 seconds duration.

The Moving Averages Setup

Our system uses five moving averages with specific periods:

• Weighted Moving Average (WMA) Periods: 14, 21, and 27
• Exponential Moving Average (EMA) Periods: 20 and 31

This combination helps identify trend direction and strength by analyzing the smoothness and spacing of these lines.

How the Strategy Works

1. Identify the Trend Direction:
   When all five moving averages smoothly flow downward and maintain a good distance from each other, this signals a strong trend.

2. Trade Entry:

   • If the moving averages are trending downwards and spaced apart, expect an upward trend for the next 30 seconds and consider entering a trade accordingly.
   • When one line is significantly distant from the others, it often signals a strong move. For example, if the trend is going up strongly, but one moving average line stands out, prepare for a reversal or a strong continuation depending on confirmation.

3. Trade Setup:
   Use 5-second Heiken Ashi candles to catch quick moves and hold trades for about 30 seconds.

4. Risk Management with Recovery:
   If the initial trade does not win (a 50/50 chance due to market unpredictability), recover by tripling your next trade size in the opposite direction based on the trend confirmation.