NEW!Advertis With US!Read More

Business

How To Trade With Rainbow Pattern On The Olymp Trade Platform?

3 Mins read

A plot used for the market analysis is the rainbow pattern Olymp trade. This consists of several averages that shift continuously over a separate duration. The standard parameters for EMA are time 10 and colour yellow when you pick an EMA from the indicator list. 

Therefore, you should alter them by tapping on a pen icon dynamically. The very first EMA is blue, period 6 ought to be grey, period 14 must be yellow, and period 26 should always be red.

The map includes three colorful EMAs and thus a name.

What Is a Rainbow Pattern?

The graphic design uses three linear moving averages for various periods. The first is the six years of blue colour; the other is the 14-yellow period, and the third is 26-red.

Using the rainbow pattern in trading

What to do with this rainbow is the interesting question? Okay, you will follow the lines and prepare for the signals to be entered. Many speculators agree that the following guidelines are fairly powerful signals that the price will drop

Look at the following chart. Next, with time 6 the blue line goes beyond the others. The EMA, cycle 14, is yellow below. Underneath is the red one with 26 runs.

The blue EMA6 then passes through the yellow EMA14. This is a good place to start for a down position. Let’s refer to the following map, now. It displays the signalling for the choice to join the trade.

The red EMA26 is at its peak in the centre. In the centre is the yellow EMA14. There’s a blue EMA6 below them all.

Although it is easy to calculate the plain, moving average, the best image is not always how prices changed. The extra moving average, comparable to the basic moving average, but is calculated differently, is the incremental moving average.

Trading Signals Based On Rainbow Pattern Olymp Trade

Most participants agree that the signs of a fall in asset prices are following strongly in the rainbow pattern Olymp trade. The blue line is above everyone else with a time of six. The yellow line is below the blue line with a time of 14.

The red line is next to all the others for a total of 26. For most traders, the intersection between the blue line and the sixth and the yellow line with the 14th cycle is market access points and the option to be purchased.

If the blue lines with six are below every other, the yellow lines with a span of 14 are above the blue lines, the likelihood of price increases is higher. The red line should be above others with the time of twenty-six.

The blue line intersections with six and the yellow line with 14 are for most traders. The market entry point and the option to buy.

How To Open Short And Long Position

Open a competitive short design place first based on the shortest-term signal; open the 2nd position after resistance testing and validation and then bounce via the support and confirm the disconnection and add the third position. If a short rainbow pattern Olymp trade is shown, then open the small position. 

Additionally, Opens smaller positions first with the signal on the shortest amount of time system when a lucrative long rainbow pattern Olymp trade emerges, then opens 2nd position after re-testing and verifying help, and when the resistor splits, retracts and confirms the breaking, open 3rd position.

How to Exit Long And Short Position

Lift the stop to a verified lower level, so that the bull runs as much as possible. Reduce the stop to a lower height verified so that the bear’s gain is maximized.

EMA Rainbow Strategy for binary options

This technique only uses one metric and that is the old candlestick chart that you might already have used and heard about. The monthly average is blue on top and gold at the edge. To assess rainbow pattern Olymp trade and find opportunities to open high/low exchange, we’ll use three Exponential Moving Average coloured to 6, 14 and 26 respectively. We use M5 timeframes and location trades of 15 minutes.

Try this strategy on a demo account

On sample accounts, this technique is easy to test. Open the binary options rainbow pattern Olymp trade demo account here, and you can immediately begin trading in a candlestick chart. For instance, the top option broker only provides a demo account after the initial deposit.

Conclusion

Try to trade with binary options rainbow pattern Olymp trade on popular corporate currencies, indices, goods and services, and shares. You never end up losing as much as you bet regardless of the height of the loss. Both for longer and shorter options, you can also choose other expiry hours.