The Trio Strategy is the strategy based on three indicators that belong to the defensive trading strategies which help to predict the trend reversal.
The three indicators are the RSI (Relative Strength Index), Williams %R, and CCI (Commodity Channel Index).
The combination of all the three indicators reveals not only the future direction of the trend but also the best entry points for your trades to be successful. No need to be overwhelmed by the number of indicators. I am here to explain everything you need to use the Trio strategy easily on the Olymp Trade platform.
Key Takeaways🔑
| →The Trio Strategy employs three key indicators: RSI, Williams %R, and CCI. |
| →These indicators combined can predict the direction of a trend and optimal entry points for successful trades. |
| →While these tools can aid in decision-making, individual research and careful risk assessment are crucial in trading. |
Contents
How to configure the Trio Strategy indicators on the chart at Olymp Trade
Go to your Olymp Trade account, log in, and choose the asset you would like to trade. Then set the chart for the Japanese candlesticks. This type of chart is the most transparent for the reviewed strategy. Now click on the graphical feature icon and search for the indicators. You will find all of them between oscillators. Click ‘RSI’. Repeat the procedure for ‘Williams %R’ and ‘CCI’.
All the indicators will appear at the bottom, one below the other. You may change some of the parameters like the color of the line, its width, or the period. Once you are satisfied, observe the lines and wait for the signals.
Using the Trio strategy to open a long position at Olymp Trade
Your main task is to observe the indicators’ lines. I am going to tell you now what exactly you are looking for.
- The line of the RSI indicator moves upward and cuts the 30 lines.
- The histogram of Williams %R moves above the -80 line.
- The green line of the CCI oscillator crosses the -100 line from below and continues upward.
It is enough when you will notice only two from the signals described above. So when two of the lines, or even better all three, go from the lowest areas up, you should open a long position.
Using the Trio strategy to open a short position on the Olymp Trade platform
For sale transactions, you should search for the following signals:
- The line of the RSI moves downward and crosses the 70 lines from the above.
- Williams %R histogram moves below the -20 line.
- The CCI line crosses the 100 lines on its way down.
Again, you can open a short position when only two of these signals appear. Two are sufficient to predict the trend reversal and fall in the prices.
Pros and Cons👍👎
Pros:
- The Trio Strategy makes use of three well-established indicators, increasing its reliability.
- It helps to identify trend reversals and find the best entry points for trading.
- The strategy is versatile and can be used across different assets and markets.
Cons:
- The Trio Strategy may not perform as well in highly volatile markets.
- While the strategy can give trading signals, it does not guarantee profits. Market risks always exist.
- The strategy may require some learning curve for beginners to understand and use effectively.
Indicator Comparison in the Trio Strategy
| Indicator | Function in the Trio Strategy |
|---|---|
| RSI (Relative Strength Index) | Helps identify overbought or oversold conditions in a market. |
| Williams %R | Assists in identifying potential price reversals. |
| CCI (Commodity Channel Index) | Used to measure the variation of a financial instrument’s price from its statistical mean. |
Final thoughts on the Trio Strategy
The Trio strategy works best when the market of your choice is not highly volatile. Use the instruments that carry a medium risk level.
Adjust the expiration time properly. To trade successfully with the Trio strategy the expiration time should be at least as long as the chart time frame. It can be longer, though.
The combination of three indicators, that is the RSI, Williams %R and the CCI gives quite a reliable and strong strategy. Start using it on your Olymp Trade demo account and once you get hold of it, move to the live account. However, keep in mind the risks of using real money. You are most likely going to incur losses, and you should be prepared for that eventuality.
Enjoy the trading!
FAQs
- Q: What are the three indicators used in the Trio Strategy?
A: The Trio Strategy uses the RSI (Relative Strength Index), Williams %R, and CCI (Commodity Channel Index). - Q: How does the Trio Strategy predict the trend direction?
A: The Trio Strategy uses the combined signals from the three indicators to predict trend reversals and identify the best entry points for trades. - Q: Is the Trio Strategy suitable for beginners?
A: While the Trio Strategy is not complex, it may require a learning curve for beginners. Practice and understanding of each indicator are essential. - Q: Does the Trio Strategy guarantee profits?
A: No, the Trio Strategy is a tool to aid in decision-making but does not guarantee profits. Individual research and careful risk assessment are always crucial in trading. - Q: Can the Trio Strategy be used in any market?
A: Yes, the Trio Strategy can be applied across different assets and markets. However, it may not perform as well in highly volatile markets.