Trading has many variations. In this guide, we will talk about trading long intervals. It gives a high probability of winning, but you must be able to predict the direction of the market. Only then you can enter a trade and end up winning. I want to show you 3 indicators that will make it easier for you to foresee the reversal of the trend.
Set up MACD, EMA and Parabolic SAR indicators on the Olymp Trade interface
After you have logged in, choose the Japanese candlesticks chart with a 5-minute interval. Then, you have to select every indicator separately. You do that by clicking the indicator icon and searching for the one you are interested in.
It is possible to adjust the settings of each indicator so they respond to your requirements. For the strategy described here set parameters accordingly: EMA 10, MACD 12, 26 and 9 so you will have them set exactly like in the above picture.
How to trade with MACD, EMA and Parabolic SAR on the Olymp Trade platform
A given combination of indicators is perfect for the reversal trend trading. You have to watch the market closely to see significant fluctuations. And here the three indicators we are using will work to our advantage. All three will signal the trend reversal is coming.
Signals for placing a buy position
EMA crosses the green bullish candle that has formed on the chart and continues to move below the price. MACD consists of two lines. The green one is supposed to cross the red line and move over it. And Parabolic SAR must stop moving above the price and start to run below it instead.
Signals for placing a sell position
If you think about entering a lower position the indicators should be as follows: EMA cuts the bearish candle and begins to move above the price. The green line of MACD crosses the red one and moves below it. And Parabolic SAR stops, then breaks and moves over the price.
The combination of MACD, EMA and Parabolic SAR provides a great help in identifying the trend reversal. Use them if you want to place long-lasting trades. The probability of winning will be bigger if you use the 5-minute period candles chart for opening trades of duration 30 minutes or more.
Now head to your Olymp Trade demo account and see how these indicators work together for your success.
Have a good trading experience!
We are sorry that this post was not useful for you!
Let us improve this post!
Tell us how we can improve this post?