There are many financial instruments available on the Olymp Trade platform. Cryptocurrencies are one of the choices. They present great opportunities to traders as they are very volatile assets. Nevertheless, it also means greater risk. That is why I want to explain how to use Forex trading mode on Olymp Trade. Let’s begin.
Key Takeaways🔑
| →Candlestick patterns like the Stalled Candlestick pattern can help identify potential trend reversals in trading. |
| →The Stalled pattern consists of three candles with decreasing body sizes in the same direction. |
| →For a bullish Stalled pattern, the first candle should have a bigger body followed by smaller candles. For a bearish Stalled pattern, the first candle should have a smaller body followed by even smaller candles. |
Contents
Forex trading mode on the Olymp Trade platform
To trade cryptocurrencies on Olymp Trade, you have to be logged in to your account first. Next, go to the list of the assets offered by this broker. Choose the Forex tab and then Crypto. There are three cryptos you can select, Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC).
You will have some more decisions to make. First, the amount of money you are willing to invest in the trade. Second, the multiplier that will allow you to trade with a bigger quote than you have decided in the first place. This is quite a powerful tool as you can earn a lot with it, but you have to be very careful not to lose everything. Set a stop loss and take profit, so the transaction will be closed automatically when the price reaches predetermined levels. And finally, after a profound analysis of the market, assess the future price direction and hit a green or red button accordingly.
In the Forex trading mode, there is also a possibility to set up a pending order. That is, you can automate your trading by determining the quote or the time when you want a position to be opened.
Forex day trading on Olymp Trade
Day trading means you open and close transactions on the same day. No position is staying open overnight. This allows avoiding some fees. On the other hand, it limits your trading time period, so try to choose the most promising and volatile cryptos.
It is also important to stay up-to-date with the news. They influence the cryptocurrencies market, and you should try to benefit from this knowledge.
Always protect your capital and have the risk management strategy well thought through.
You may day trade on the Forex mode with breakouts, news trading and scalping.
In our example below, you can see a chart for Litecoin. The candlesticks period is 15 minutes. The invested amount is 100 and the multiplier is set at 5. This means there are really $500 in the game. The stop loss and take profit are defined, and the Alligator indicator is added to the chart to produce trading signals.
Pros and Cons of the Stalled Candlestick Pattern ⚖️
Pros:
- Helps identify potential trend reversals
- Easy to recognize and interpret on price charts
- Can be used in conjunction with other technical analysis tools
Cons:
- Not always 100% accurate and can produce false signals
- Requires proper identification and confirmation for effective use
- Should be used in combination with other analysis methods
| Bullish Stalled Pattern | Bearish Stalled Pattern |
|---|---|
| Identified during a downtrend | Identified during an uptrend |
| First candle is bearish with a quite big body | First candle is bullish with a big real body |
| Second candle is bearish with a smaller body | Second candle opens and closes higher than the previous candle and is bullish |
| Third candle is bearish with the smallest body | Third candle opens and closes higher than the previous two candles, has the shortest body, and a long upper shadow |
Final words
The potential of Forex day trading is quite immense. You do not pay overnight fees and get fast results. You get to use a wonderful tool, a multiplier, so you can trade with a much bigger sum than you actually have in the account. Naturally, you should be aware that this increases risk at the same time. Your loss can be much more severe when you trade with the leverage. Cryptocurrencies are generally risky assets, as they are extremely volatile. Always remember to set take profit and stop loss. Moreover, you should follow the news that can have a large impact on cryptos behaviour.
Develop a good risk management strategy. You can test your technique in the Olymp Trade demo account. All functions are available the same way they work in the real account, but you trade with the demo currency instead of your own money. This assures you can practice in a safe environment, not worrying about diminishing capital. Use the demo account whenever you want to check a new asset or a strategy.
Wish you high profits!
Frequently Asked Questions about the Stalled Candlestick Pattern 🧐
- Q: What is the Stalled Candlestick pattern?
- A: The Stalled Candlestick pattern is a three-candle pattern that indicates a potential trend reversal.
- Q: How can I identify a bullish Stalled Candlestick pattern?
- A: Look for a sequence of candles where each candle has a smaller body than the previous one and all are in the same direction during a downtrend.
- Q: How can I identify a bearish Stalled Candlestick pattern?
- A: Look for a sequence of candles where each candle opens and closes higher than the previous one, has a shorter body, and a long upper shadow during an uptrend.
- Q: Can the Stalled Candlestick pattern be used in different timeframes?
- A: Yes, the Stalled Candlestick pattern can be applied to various timeframes, but it’s important to consider the overall trend and market conditions for better accuracy.
- Q: Should I solely rely on the Stalled Candlestick pattern for trading decisions?
- A: No, it is recommended to use the Stalled Candlestick pattern in combination with other technical analysis tools and indicators for confirmation and better decision-making.