Trading Strategies of Olymp Trade

Every person, when deciding to do trading, wants to get the highest profit from it, so he is looking for instruments to improve his efficiency. And that is where binary indicators, which help analyze the market and even predict the direction of the rate curve, come in handy. Let's analyze 2 basic strategies, which are used by traders in 2023 to improve their performances in trading on Olymp Trade.

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Keltner channel - Trading Strategy

We should start our binary options tutorial with this indicator because it has proven to be an effective one and can be used quite easily on the Olymp Trade platform. This indicator helps determine entry points, which automatically increases the profitability of trading by increasing the probability of making the right trades. It was invented in 1960, but it has not lost its effectiveness even in 2023.

Keltner channel has two boundaries - up and down. They are used by binary options brokers to determine the overbought and oversold probabilities. In general, only 3 parameters are used when setting it up:

  • Middle line - 20-period exponential moving average, which is the average value between the top and bottom.
  • The upper line - 20 EMA + (2 * ATR).
  • Bottom line - 20 EMA -+ (2 * ATR).

Using in trading on the Olymp Trade

Keltner channel strategy allows you to predict at what point the market will turn, which in turn helps to identify the best time to buy or sell. However, it is not a 100% guarantee that opening a short position on the upper border of the channel will be effective. The binary options trading system is arranged in such a way that there is a great deal of human influence here, which means that there is a probability of getting into an overbought price in an uptrend. By the way, the same goes for a downtrend.

In the case of long positions, it is necessary to wait for the price, which is outside the Keltner channel. In this case we can talk about an extreme level, which allows you to get a larger binary options profit.

But to increase one's chances for success, it is worth taking advantage of the support and resistance indicators, which can help distinguish a price rebound from a certain level.

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Identifying Market Conditions

With Keltner channel you can predict the best time to buy, sell or hold funds:

  • Keltner channel above 200 MA - an uptrend, you should buy.
  • Keltner channel below 200 MA - downtrend, you need to sell.
  • Keltner channel within 200 MA - consolidation, you may buy and sell.

Let's consider the second strategy - how to trade binary options at Olymp Trade.