To recap, fixed-time trading (FTT) is a type of transaction where assets are traded within a fixed time range. There are certain strategies that have been developed to help new traders make wise choices. On Olymp Trade, 5 of these strategies are made available to you regardless of experience or skill level – all you need to do is use them on the OlympTrade platform. If you crave more strategies, simply trade your way through Trader’s Way to upgrade from Beginner to Advanced or Expert.
Now, let’s dive into the last three strategies!
Reflection
Reflection uses the Stochastic oscillator with Japanese candlesticks and levels like support and resistance. This strategy is recommended to counter the trend, so you should have some knowledge about market trends before using this strategy.
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We recommend using Reflection on the five-minute and one-hour timeframes. The time of the trade must be five times higher than the timeframe. For example, if you are working on a 10 minute timeframe, then the trading interval should be 50 minutes.
Sell signal
A sell signal occurs when the price hits a resistance level and a correction begins in the chart. At the same time, the Stochastic Oscillator must cross its signal line and overbought line from top to bottom. In this case, the overbought line is at stochastic 80. You will also need to look for price action reversal patterns to generate better buy signals.
Buy signal
A buy signal needs the opposite: Price needs to touch a support level, start correcting from there. At the same time, the Stochastic oscillator must cross the signal line and the oversold line (20) from bottom to top, as well as the price action patterns in the chart, to confirm the quality of the trading signal.
Relative Strength Law
The Law of Relative Strength is based on a fast, 5-period RSI oscillator. Like the previous strategy, this is a counter-trend strategy and can be used on time frames from five minutes to an hour.
The Law of Relative Strength works faster than the Reflection strategy, as it requires only a small correction in a major trend, while Reflection expects a larger correction, which can sometimes change direction. of the current trend.
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Therefore, trades with the Law of Relative Strength strategy will last twice as long as the timeframe used. So if you are analyzing the 10 minute time frame, your trade will last 20 minutes.
Sell signal
To be able to open a sell order, the RSI must cross the overbought line (70) from top to bottom while there is a price action pattern on the chart.
Buy signal
The signal to open a buy trade occurs when the RSI crosses the oversold line (30) from bottom to top and at the same time, you spot a reversal (or correction) pattern of price action on the price chart.
Sliding on Averages
Many people claim that Sliding Above Average is the easiest strategy to start with. The main reason is because of the indicators used: just two simple moving averages! In addition, this trending strategy is different from the previous two strategies presented here, which means it is less risky.
The periods of the simple moving averages used in this strategy are 4 and 60.
The recommended time frame for this strategy ranges from five minutes to an hour. The time of the trade should be two times higher than the timeframe used. For example, if you are trading in the 10 minute timeframe, your trade with this strategy will last 20 minutes.
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Sell signal
A Down trade signal (or open a sell trade) occurs when the SMA-4 line crosses the SMA-60 line from top to bottom. Please note that this is a trend strategy, so the price must cross the SMA-60 line (often used as dynamic support) from top to bottom. This is not required, but will increase the likelihood of profit.
Buy signal
For a buy trade, the signal needed is a bottom-to-top crossover of the SMA-4 through the SMA-60, with the price uptrend breaking above the SMA-60 resistance.
Сonclusion
The five strategies outlined in this series each have their own strengths and can be used in different market conditions. Professional traders should know at least some trending and counter-trend strategies so that they can take advantage of any situation. Those who want to expand their knowledge about taking advantage of market conditions, we recommend you to check out our articles on the basics of trendline strategy as well as clear analysis. Know what volatility is and you can still profit in a volatile market. If you want to dig deeper and find the best fixed time trading strategy for you, try our free webinar course on fixed time trading.
