How to identify and trade the Sushi Roll pattern on Olymp Trade


Sushi Roll pattern on Olymp TradeTraders’ objective is to enter transactions at the best moment. This moment is not always so easy to identify and that is why various tools exist. Chart and candlestick patterns can help you in the decision-making process. We want to present them to you so you can utilise them in your trading. Today, we are going to describe the Sushi Roll pattern.

Sushi in trading

The Sushi Roll belongs to reversal patterns. This means that once you notice it on the chart, you can expect the price will change its direction. It reveals the general market sentiment. The method was developed by Mark Fisher and it gives you a warning about a possible reversal pretty soon.

How does the Sushi Roll look like?

In order to identify the pattern we describe today, you need to take 10 candles under observation. The first five should not show any large fluctuations. And the next five candles should engulf the first five.

The Sushi Roll can be bullish or bearish. Let’s see it on the exemplary chart.

Bullish Sushi Roll pattern on daily Bitcoin chart
Bullish Sushi Roll pattern on daily Bitcoin chart

Above you see a bullish Sushi Roll pattern. It can be identified during the downtrend. First five candles in the pattern show rather a sideways movement. The next five candles completely engulf the previous five. Not all candles in the second half of the pattern have to be green.

The following chart shows a bearish Sushi Roll that should be searched for in the uptrend. Here the last five candles of the pattern include in their range all the lows and highs from the previous five candles.

Bearish Sushi Roll pattern on daily Bitcoin chart
Bearish Sushi Roll pattern on daily Bitcoin chart

Trading with the Sushi Roll pattern on Olymp Trade

With the use of the Sushi Roll pattern, traders are able to identify trend reversal quite early. You can use this pattern to either open or close your transactions.

If you plan to enter a long trade you should look for the bullish Sushi Roll pattern to appear. Wait until the candle closes above the highest high from the pattern and then open a long position. You can also try more aggressive entry without waiting for the candle to close.

bullish Sushi Roll Pattern
Buy when the price crosses above the high of the bullish Sushi Roll Pattern

In order to open a sell trade identify the bearish Sushi Roll pattern first and then wait for a candle to close below the lowest low in the pattern. You can also open a short position immediately after the price goes under the pattern low.

bearish Sushi Roll Pattern
Sell when the price crosses below the low of the bearish Sushi Roll Pattern

Summary

You will find the Sushi Roll among reversal patterns. It can be used on basically every chart timeframe. It reveals a change in the sentiment and the beginning of a new trend.

You can use the pattern to open or close an existing position. It can function as a standalone indicator, however, you can also use some extra confirmation of the signals in a form of the moving average or volumes.

The Sushi Roll is a pretty reliable pattern though not observed frequently. Go to the Olymp Trade demo account and try to find it. Practice trading with the Sushi Roll and once you are ready, move to the live Olymp Trade account to earn profits.

Good luck!

How useful was this post?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 2

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Bart Bregman

Full time day trading, and helping out with Olymp Trade wiki in my spare time to create an awesome platform for beginners. I'm a digital nomad that travels the world while working from everywhere!

Recent Posts

GET INSTANT ACCESS
This is default text for notification bar