29 Technical Analysis Tools to Use to Make Money in Olymp Trade.

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Technical analysis is the use of various chart analysis tools for more accurate predictions when trading Forex and Fixed Time.

Olymp Trade is one such broker that provides you richly with so many technical analysis tools that you cannot exhaust.

But you might be wondering which are these technical analysis tools on Olymp Trade and how do they work?


Before you continue reading, here's another easy way to make money with the right strategy. Quotex trading. Register and use promo code "KennOmollo" for a 50% bonus. 👇


 

If that is your worry, then this post is for you.

I will show you 29 technical analysis tools you can exploit to make money with Olymp Trade-in Kenya.

Ready for my list?

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Here are 29 technical analysis tools to leverage to make money while trading on Olymp Trade:

  1. Simple Moving Average (SMA).

Simple moving average

The Simple Moving Average is a technical analysis tool that calculates and shows the average of a given range of prices of an asset over a given number of periods within that range.

How to use the Simple Moving Average to Trade:

  • SMA Crossovers – apply two SMAs of different periods. Trade in the direction of the short period SMA crosses over the long period SMA.
  • Price Bounce back – apply one SMA say SMA 20. Wait for the price to cross the SMA upwards or downwards. Let the price remain in the direction it has crossed to, falling or rising to hit the SMA and retest it successfully without breaking downwards or upwards past the SMA. Trade in the direction of price bounce back.
  • Trend – SMA points in the direction of the general trend. Regardless of how many SMAs you use, trade in the direction they point.
  1. Exponential Moving Average (EMA).

The Exponential Moving Average, just like SMA, calculates and shows the average of a given range of prices of an asset over a specified number of periods in that range.

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The only thing that makes it different from SMA is that EMA places a greater significance on the most recent data in its calculation, make it more preferable.

How to use the Exponential Moving Average to Trade:

EMA - Exponential Moving Average

  • EMA Crossovers – apply two EMAs of different periods. Trade in the direction of the short period EMA crosses over the long period EMA.
  • Blade runner – apply one EMA of period 20. Wait for the price to cross the EMA upwards or downwards. Let the price remain in the direction it has crossed to, falling or rising to hit the EMA, retesting it successfully without breaking downwards or upwards past the EMA. Trade in the direction the price retests EMA 20 towards.
  • Trend – EMA points in the direction of the general trend. Trade in the direction your EMAs point to profit from the general trend.
  1. Weighted Moving Average (WMA).

The Weighted Moving Average is a technical analysis tool that calculates the average of a given range of prices of an asset over a given number of periods.

What makes the WMA different from both SMA and EMA is that the WMA assigns greater weighting on most recent data and less weighting on past data.

Each number in the data set is multiplied by a predetermined weight and the resulting values are added together.

How to use the Weighted Moving Average to Trade:

WMA Indicator

  • WMA Crossovers – apply two WMAs of different periods. Trade in the direction the short period WMA crosses over the long period WMA.
  • Price Bounce back – apply one WMA say WMA 20. Wait for the price to cross the WMA upwards or downwards. Let the price remain in the direction it has crossed to, falling or rising to hit the WMA and retest it successfully without breaking downwards or upwards past the WMA. Trade in the direction of price bounce back.
  • Trend – WMA points in the direction of the general trend. To profit from the general trend, trade in the direction WMAs point.
  1. Parabolic or Stop and Reverse (SAR) System.

A parabolic or Stop and Reverse system is a technical analysis tool that determines the direction the price of an asset is moving towards.

It does so by showing potential reversal points of the price, where the current trend ceases and a new one begins to form.

How do you use a Parabolic or SAR system to trade in Olymp Trade?

It is very simple.

Parabolic Sar trend reversal

Whenever the Parabolic or SAR dots are above the price of an asset, consider that a downtrend.

Conversely, whenever the Parabolic or SAR dots are below the price, consider that an uptrend.

Just time very well to catch the trend as it begins.

Once you notice a few dots of the indicator developing above the price, consider trading down.

If on the other hand, you spot several dots of parabolic forming below the price, you can trade up.

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  1. Bollinger Bands.

Bollinger Bands is a technical analysis tool that consists of one volatility band above and another below a central moving average.

It is a measure of market volatility so that high volatility and low volatility traders can trade accordingly.

The tool measures volatility based on Standard Deviation which changes with volatility.

You are dying to know how you can use Bollinger Bands to trade on Olymp Trade, right?

Well, as we mentioned earlier, Bollinger Bands is a measure of market volatility and so it will signal you when volatility is high and when it is low.

When volatility is high, the upper and lower volatility bands of the Bollinger Bands tool will be wide apart.

Bollinger_Bands

Conversely, when volatility is low, the volatility bands will be close together.

Traders who prefer trading when market volatility is high should consider doing so when Bollinger bands are wide apart and the opposite is true for low volatility traders.

You can also use Bollinger Bands as a measure of price reversal.

This must also be supported by other tools such as oscillators showing overbought or oversold conditions.

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If the price hits or goes beyond either volatility band and there is confirmation of reversal from another tool, you can trade in the direction of a potential reversal.

  1. Ichimoku Cloud.

Ichimoku Cloud is a technical analysis tool that uses a collection of indicators to show the trend direction, price momentum as well as support and resistance zones.

A total of five lines make up the Ichimoku Cloud tool, two of which form the cloud and their difference is shaded, and these two are the most significant.

I will not worry you with so many calculations but will go straight to how you can use Ichimoku Cloud to trade in Olymp Trade.

Ichimoku cloud

Basically, you should trade in the direction the price is in relation to the cloud.

That means, if the price is above the cloud, then the price momentum is upwards, and if below the cloud, the momentum is downwards.

What makes the signal even stronger is if:

  • In an uptrend, the whole cloud or its upper line is inclined upwards.
  • In a downtrend, the whole cloud or its lower line is inclined downwards.

Support comes in when the price above the cloud falls to the upper line and fails to break downwards (Trade Up).

Resistance happens when the price below the cloud rises to the lower line of the cloud and fails to break upwards (Trade Down).

  1. Alligator.

The Alligator is a trend technical analysis tool that uses three smoothed moving averages.

It will show you the direction of the general trend so that you can trade in that direction and profit from the trend.

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It also shows you possible trend reversals so that you can catch a new trend as early as possible.

How do you leverage the Alligator to make money with Olymp Trade?

This is how simple it is to use the Alligator to make money off the markets with Olymp Trade.

In any setting, the three moving averages of the Alligator will arrange themselves such that the lip (green line) is closest to the price, followed by the teeth (red line), and then the jaw (pale blue line).

What that means is that if you spot the three lines arranged in descending order from the lip to the jaw, then such is an uptrend (Trade Up).

Alligator indicator

Conversely, where the three lines arrange themselves in ascending order from the lip to the jaw, then such is a downtrend (Trade Down).

The aspect of reversal comes in where you spot the three lines changing from one order to another.

This implies a change from one trend to another and so you can trade in the direction of the impending trend.

  1. ZigZag.

The ZigZag Indicator is a chart analysis tool that calculates and shows price reversal points where the price reverses by a degree more than the chosen value.

It does so by drawing straight lines between downward and upward reversal points.

Using the ZigZag to make money on Olymp Trade is the simplest thing I ever.

This is because you just observe the reversal points shown by the ZigZag indicator and then trade in the direction of a potential reversal.

Let us say, for example, the last reversal point was an upward reversal.

The price then began moving upwards in an uptrend and stopped moving downwards.

The last line of the ZigZag indicator is therefore downwards from a previous downward reversal point to the current upward reversal point.

In the above scenario, the next reversal point we expect is a downward reversal point.

Therefore, once a new upward line forms from the previous upward reversal point to any point on the price, then that will become a possible downward reversal point.

Confirm the downward reversal with any other tool and trade down.

  1. Donchian Channel.

The Donchian Channel is a technical analysis tool that shows market volatility and the price trend or momentum.

This is in reference to a pre-set parameter or number of periods.

The tool is made up of an upper and lower band then a middle line.

Making money on Olymp Trade using the Donchian Channel is easy.

You can make money using the Donchian Channel by trading the trend, trading breakouts, and establishing market volatility.

Beginning with the last, high market volatility is represented by the Donchian channel is widening of the bandwidth.

Low market volatility is shown by constriction of the bandwidth.

Traders preferring high volatility conditions should consider trading when the Donchian Channel bandwidth is wide while low volatility traders should do so at a narrow bandwidth.

Donchian Channel.

Trade the trend by trading up when the price crosses the middle line upwards and the channel is inclined upwards. Inversely, trade down if the price crosses the middle line downwards and the channels points down.

Donchian Channel breakouts are identified by the price touching either the upper or lower band.

Trade up if the price touches the upper band and down if the price touches the lower band.

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  1. Moving Average Convergence and Divergence (MACD).

The Moving Average Convergence and Divergence is a technical analysis tool that shows the trend of the price of an asset by showing the relationship between two moving averages.

In addition, the MACD also has a zero line and a curve or histogram or an area oscillating about the zero lines.

Wondering how to make money with Olymp Trade using the MACD?

Well, it’s not complicated.

MACD Indicator

It is as simple as observing the components of the indicator and trading accordingly.

We termed MACD as a trend indicator and so you can trade the trend by observing the behavior of the indicator.

Trade up if the fast MACD MA crosses over the slow MACD MA upwards.

You can also consider trading down if the fast MACD MA crosses over the slow MACD MA downwards.

That is not all about trend trading using the MACD though.

Trade up if the MACD MAs and the oscillating histogram/curve / area shift from below to above the zero line.

Opposite conditions call for a down trade.

  1. Relative Strength Index (RSI).

The Relative Strength Index is a technical analysis tool that is usually used as a measure of price momentum as well as to show price reversal points.

It is made up of a line oscillating about the 50 levels and within the 70 and 30 levels as the upper and lower limits.

Making money with Olymp Trade using the Relative Strength Index is not rocket science.

You are just about to realize how easy it can get.

As a measure of price momentum, RSI gives a hint to trade up once the line crosses the 50 level from below upwards.

It also signals a down trade at the cross of the line from above to below the 50 level.

RSI Indicator

We also mentioned that RSI can show price reversal points.

It does so by identifying overbought and oversold conditions.

If the line is at or above the upper limit (70 level), then that is an overbought condition calling for a sell.

The price being at or below the lower limit (30 level) shows an oversold condition that is traded by buying.

  1. Stochastic Oscillator.

The Stochastic Oscillator is a chart analysis tool that measures price momentum as well as showing potential price reversal zones.

It is actually almost similar to RSI, except that it has two lines without a middle level as opposed to RSI’s single line oscillating about the middle level.

Stochastic Oscillator consists of a fast and a slow line that oscillates within an upper 80 level and a lower 20 level.

You can easily make money with Olymp Trade using the Stochastic Oscillator.

You do not need to apply sophisticated theories because it is actually as simple as you are about to discover.

Let’s begin by trading momentum.

Stochastic

The Stochastic Oscillator shows momentum in the direction of crossover between its two lines.

If the fast Stochastic line crosses over the slow line from above downwards, then the price momentum is downwards (Sell).

Conversely, if the fast stochastic line crosses over the slow line from below upwards, the price has upward momentum (Buy).

Switching to price reversal points.

The Stochastic Oscillator shows overbought conditions if its lines are at or above the upper 80 level (Sell).

It, however, shows an oversold condition if its lines are at or below the lower 20 level (Buy).

  1. DeMarker.

The DeMarker is a technical indicator that measures the demand for an asset.

This it does by comparing the most recent high and low prices to the previous high and low prices of an asset.

By measuring the demand of an asset, DeMarker is in the business of helping you establish the price momentum, trend, and reversal points.

DeMarker is made up of three levels and a line snaking over the three levels.

The upper level reads 0.300, the middle 0.500, and the lower level 0.700.

Making money with Olymp Trade has never been easier than it is using the DeMarker. This is because trading the technical analysis tool gives easy to identify signals.

To begin with, price momentum and trend is the first manner to trade the DeMarker.

If the DeMarker line crosses the middle 0.500 level upwards, the price has upward momentum and if the line crosses the same level downwards, the price has downward momentum.

Trading price reversals is another way to use the DeMarker to make money with Olymp Trade.

The price being at or above the upper 0.300 level is an overbought condition while being at or below the lower 0.700 level is an oversold condition.

  1. Aroon.

Aroon is a technical indicator that shows trend changes in the price of an asset and the strength of the trend.

It is made up of two lines, an Up line which tracks the strength of uptrends, and a Down line which tracks the strength of downtrends.

The two lines oscillate between 0 level and 100 level.

Aroon Oscillator

Interested in making money with Olymp Trade using the Arron?

Observe the behavior of the Up and Down lines and trade accordingly.

Basically, when the Up line is above the Down line, the trend is upwards and so buy orders are in order.

Conversely, when the Down line is above the Up line, the trend is downwards so sell orders would do.

You might also want to tap into trend changes by observing crossovers between the two lines.

A crossover of the Up line from below to above the Down line is a change of trend from the downtrend to an uptrend.

The opposite is true for a change from an uptrend to a downtrend – the crossover of the Down line from below to above the Up line.

If you had open trades in the direction of the previous trend, you may consider closing them.

Overbought and oversold conditions are also easily identified using the Aroon.

Whenever the Up line hits the 100 level, such is an overbought condition, sell.

When on the other hand, the Down line hits the 100 level, then such is an oversold condition so consider buying.

  1. Bears Power.

Bears Power is a technical indicator to gauge the power of Bears or Sellers and therefore weigh them against the Buyers.

In doing so, it will signal either continuation or potential reversal of a bearish trend or a reversal.

The tool consists of a curve, area, dots, or histogram oscillating about a zero line.

How then can you make money with Olymp Trade using the Bears Power indicator?

Very simple.

Just observe the behavior of the Bears Power curve, area, dots, or histogram in relation to the zero line.

Bears Power indicator is majorly meant to give you sell signals as it is related to bears or sellers. This is in relation to when to enter and when to exit a sell position.

To enter a sell position, ensure that the curve, area, dots, or histogram of Bears Power crosses from above to below the zero line.

If the Bears Power parameters begin to cross from below to above zero line, then that is a possible reversal point of the bearish trend, so exit your sell trade.

  1. Bulls Power.

Bull Power is a technical indicator to measure the power of Bulls or Buyers and therefore determine the balance between them and the Sellers.

In doing so, the indicator will signal either continuation or potential reversal of a bullish trend.

The indicator is made up of a curve, area, dots, or histogram oscillating about a zero line.

If you are wondering how you can make money with Olymp Trade using the Bulls Power indicator, then it is very easy.

Just observe the behavior of the Bulls Power curve, area, dots, or histogram in relation to the zero line.

The Bulls Power indicator usually gives you buy signals because it is related to bulls or buyers.

This is in terms of when to enter and when to exit buy positions.

Ensure that the curve, area, dots, or histogram of Bulls Power crosses from below to above the zero line before you can buy.

If the Bulls Power curve, area, dots, or histogram begins to cross from above to below the zero line, then that is a possible reversal point of the bullish trend, so exit your Buy position.

  1. Commodity Channel Index (CCI).

The Commodity Channel Index is a technical indicator that compares the current price to the average price over a given number of periods.

This may in turn be used to measure the momentum of the price of an asset.

The indicator consists of a curve, area, dots, or histogram oscillating about a zero line. Apart from the zero line, other levels above and below the zero line exist.

CCI on Iq Option

Mostly, the CCI curve, area, dots, or histogram move between -100 and +100 while sometimes the movement may be beyond such levels. -100 and +100 are therefore usually considered the upper and lower limits of the CCI respectively.

Having established the above facts, it makes it even easier to make money with Olymp Trade using CCI.

Trading the trend and price reversals are the major ways you can profit using the Commodity Channel Index.

The cross of the CCI curve, area, dots, or histogram from below to above the zero line is an indicator of upward price momentum (Buy).

The cross of such parameters from above to below the zero line hints to a downward price momentum (Sell).

Price reversals are in form of overbought and oversold conditions.

If the CCI curve, area, dots, or histogram is above +100, such is considered an overbought condition. Wait for the price to cross +100 downwards and Sell.

On the other hand, when it is below -100, such is an oversold condition. Wait for the price to cross the -100 level upwards and Buy.

  1. Rate of Change (ROC).

The Rate of Change is a technical tool that shows the percentage change in price between the current price and the price a given periods ago.

This helps to show trend direction and strength and also potential trend reversals.

The indicator consists of a curve or histogram oscillating about a zero line. There are other levels above and below the zero line as well.

The ROC is easy to use and you can make huge profits with Olymp Trade using the tool.

You only need to observe how the curve or histogram of the ROC behaves with respect to the zero line and the other levels of the tool.

Rate of change oscillator

If the curve of the histogram of the ROC crosses from below to above the zero line, it hints to an upward price momentum (Buy).

If it crosses from above to below the zero line, however, it’s a downward price momentum indicator (Sell).

Beware of a curve or histogram which oscillates about the zero line and not going further, because the price might be consolidating or trading in a range.

About price reversals, the Rate of Change oscillates between two physically fixed levels, but their values keep changing.

When the curve or histogram hits the upper bound, such is considered an overbought condition fit for a sell.

If the curve or histogram hits the lower bound, then it’s an oversold condition calling for a buy position.

  1. Detrended Price Oscillator (DPO).

The Detrended Price Oscillator is a technical indicator that shows short-term trends and helps traders spot price reversal points within long-term trends.

Technically, the indicator estimates the length of price cycles from trough to trough or peak to peak.

The DPO is not a momentum indicator at all but shows peaks and bottoms used to predict entry points.

This indicator consists of a curve, histogram or area oscillating about a zero line.

There are no other numbered levels of the tool.

Detrended Price Oscillator

To make money with Olymp Trade using the Detrended Price Oscillator, you only need to observe the curve, histogram, or area of the DPO.

Basically, as we mentioned, the DPO is used to measure the distance between peaks and bottoms.

If peaks have been 3 hours apart, it is highly unlikely that after the most recent peak, the next will be after 3 hours, so you can plan to enter a sell position at that peak.

The same applies to troughs such that you will plan to buy at the next trough after the most recent one after the determined period between troughs using DPO.

  1. Williams Percent Range (Williams %R).

The Williams Percent Range is a technical indicator that compares the closing price of an asset to the high – low range over a given number of periods.

This tool consists of a curve, area, dots, or histogram which moves about a central -50 level and within an upper -20 and a lower -80 levels.

The curve, area, dots, or histogram of the Williams %R actually oscillates between 0 and -100.

Making money with Olymp Trade trading the Williams %R is not difficult. Actually, you can trade price reversals as well as price momentum using the tool.

Downward price reversals are highly likely to occur when the curve, area, dots, or histogram is above the -20 level.

That is because such is considered an overbought condition. Upward price reversals are likely to occur at an oversold condition when the curve, area, dots, or histogram is below -80.

Price momentum is actually traded in almost a similar manner as oversold and overbought conditions.

Once the price crosses the -80 level upwards rapidly, then the price is likely to assume an upward momentum. The opposite is true if the price crosses the -20 level downwards rapidly.

  1. Gator.

Gator is the right hand of the Alligator indicator because it uses the same parameter used to calculate the Alligator moving averages to plot a dual curve, area, or histogram chart.

The positive values of the Gator are the difference between the teeth and jaw of the alligator while the values below the zero line are the difference between the lip and teeth of the alligator.

Consequently, the Gator indicator consists of a dual histogram, area, or curve which are separated by a middle zero line.

MACD and Alligator indicators

Want to know how to make money with Olymp Trade using the Gator?

It is as simple as ABC, just as you are about to find out.

The gator has different phases including sleeping when both the positive and negative bars are red.

The next phase is the awakening phase when some red bars turn green, then the eating phase when both the positive and negative bars are green.

Lastly is the sated phase where some green bars turn red.

You should consider entering a buy position when the gator is in the awakening phase and hold it through the eating phase.

Exit the buy trade when the gator begins to enter the sated phase.

The complete opposite applies to a sell position.

The sleeping phase has both negative and positive bars green, awakening phase some green bars turn red, then both positive and negative bars turn read in the eating phase.

Some red bars begin to turn green in the last sated phase.

Consider a sell position in the awakening phase, holding it through the eating phase only to exit at the onset of the sated phase.

From the above explanations, the zero line does not matter. The bars which turn red or green may be on either side of the zero line. Take note.

  1. Average Directional Index (ADX).

The Average Directional Index is a chart analysis tool that helps measure the strength of a trend, whether uptrend or downtrend.

The indicator is made up of the ADX curve, histogram, area or dots, the +DI curve, histogram, area or dots, and the -DI curve, histogram, area, or dots.

The three elements oscillate 0 and 100.

How to make money with Olymp Trade using the ADX is not so difficult.

You only need to observe how the three elements of the ADX behave in relation to each other and the scale.

Basically, you will be using the ADX to measure the strength of an uptrend or a downtrend.

It will be an uptrend if the +DI element is above the -DI element. Conversely, it will be a downtrend if the -DI element is above the +DI element.

Have you established which trend it is using the +DI and the -DI relations?

Then the next thing is to measure the strength of that trend using the ADX curve, histogram, area, or dots.

A reading of the ADX element below 20 translates to a weak trend while a reading above 50 means the trend is strong.

A +DI element above a -DI element coupled with a reading of above 50 of the ADX element means a strong uptrend (Buy).

A -DI element above a +DI element and reading of ADX element above 50 means a strong downtrend (Sell).

  1. Awesome Oscillator (AO).

The Awesome Oscillator is a technical indicator used to measure market momentum to get trend direction and possible reversal points.

It does so by calculating the difference between 5 period and 34-period moving averages which are calculated by using the midpoints of price bars rather than closing prices.

The indicator consists of a curve, area, or histogram oscillating about a zero line.

Switching gears to making money with Olymp Trade using the Awesome Indicator.

A buy signal is generated when the AO curve, area, or histogram crosses from below to above the zero lines because it signals bullish momentum.

A sell signal is given when the AO reading crosses from above to below the zero lines because it shows a bearish momentum.

Reversal points of an uptrend are hinted is the AO reading shifts from above to below the zero lines.

Reversal points of a downtrend are signaled by the AO reading shifting from below to above the zero line amid a downtrend.

  1. Momentum.

The Momentum is a technical analysis tool that measures the momentum behind the movement of the price of an asset over a given period. In doing so, it also helps identify potential price reversal points such as overbought and oversold levels.

The indicator is made up of a curve, histogram, area, or dots oscillating about a 100 level and within an upper and lower physically fixed levels whose values keep fluctuating.

There is also an additional line that seems to move with the curve, histogram, area, or dots of the tool for smoothing of values.

You will be shocked to realize how easy it is to use Momentum to make money with Olymp Trade.

You only observe the behavior of the curve, histogram, area, or dots in relation to the central 100 level and the upper and lower levels.

Momentum trading

As a measure of market momentum, the Momentum will signal:

  • A bullish market momentum at the cross of the curve, histogram, area, or dots from below to above the 100 level (Buy).
  • A bearish market momentum when the curve, histogram, area, or dots from above to below the 100 level (Sell).

Price reversal points are in terms of overbought and oversold levels. If the curve, histogram, area, or dots of the momentum hits the upper fixed level, observe for an overbought condition to sell.

If the Momentum element hits the lower fixed bound, then check out for an oversold condition to buy.

  1. Fibonacci Levels.

The Fibonacci Levels is a technical price analysis tool that is made up of horizontal lines drawn in respect to Fibonacci levels of 23.6%, 38.2%, 50%, 61.8%, and 100%.

The lines have the purpose of predicting possible support and resistance levels where the price is bound to reverse.

Making money with Olymp Trade using the Fibonacci Levels is not a sophisticated affair.

The Fibonacci Levels are just meant to show you retracement levels of the price where the price is likely to reverse. That way,  you can enter the market at those levels.

To use the Fibonacci Levels tool, the first thing is to identify which kind of a trend you are dealing with.

An uptrend is typically a market that forms higher highs and lows. A downtrend is one that forms lower highs and lows progressively.

Support and resistance levels

 

If the market is an uptrend, identify a recent market low and let the zero level form the support level there.

The rest of the readings of the Fibonacci Levels tool must be above the zero line.

Identify also the most recent high and let the 100 level form the resistance level at that high.

Allow the price to rally upwards and then to retrace back downwards.

Observe to see the price pullback downwards to any of the Fibonacci Levels. It must then retest the level without breaking downwards so that you can enter a buy position.

If the market is a downtrend, identify a recent market high and let the zero level form the resistance level there.

The rest of the readings of the Fibonacci Levels tool must be below the zero line.

Identify also the most recent low and let the 100 level form the support level at that low.

Allow the price to rally downwards and then to retrace back upwards.

Observe to see the price pull back upwards to any of the Fibonacci Levels. It must then retest the level without breaking upwards so that you can enter a sell position.

  1. Fibonacci Fan.

The Fibonacci Fan is a technical chart analysis tool that consists of trend lines plotted with respect to

Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%.

These trend lines are meant to predict potential support and resistance levels where the prices are likely to reverse.

Wondering how to use the Fibonacci Fan to make money with Olymp Trade?

It’s very easy, actually easier than you ever thought it could be.

Basically, the Fibonacci Fan, as we said, is meant to pinpoint potential reversal points of the price after a retracement.

Consequently such will point out market entry points.

To be in a position to use the Fibonacci Fan, first identify the general trend of the market.

A market that forms higher highs and lows progressively is an uptrend. Conversely, one which forms lower highs and lows progressively is a downtrend.

Falling Fibonacci levels

If an uptrend, just identify at least two most recent lows of the market and let the zero line form the support level there.

The rest of the readings of the Fan must be above the zero line.

Additionally, find at least two most recent highs and let the 100 line form the resistance level at those highs.

You will then allow the price to run upwards and then try to retrace back downwards.

Observe keenly such that if the price retraces to any of the trend lines and retests the line without breaking downwards, you can enter a buy position.

If a downtrend, identify at least two most recent highs of the price and let the zero line form the resistance level there.

The rest of the readings of the Fan will be below the zero line.

Identify at least two most recent lows and let the 100 line form the support level at those swing lows.

Allow the price to run downwards and then retrace back upwards.

Be keen to see the price rise to any of the trend lines and retest it successfully without breaking upwards. You can then enter a sell position.

  1. Horizontal Line.

A Horizontal line is a drawing tool in technical analysis that runs across the price chart from left to right.

The line is significant in identifying important levels of the price for more accurate predictions while trading.

Simple as it is, the Horizontal line can make you huge profits with Olymp Trade.

Basically, the Horizontal line is used to draw horizontal support and resistance levels between swing lows and swing highs respectively.

Once you have drawn your support and resistance levels using the Horizontal line, then you can do a lot with them.

You can choose to trade the price range between the two levels or even trade breakouts if the price runs out of the range.

If the price has a tendency to remain inside the range, trade down if it hit and retests the upper horizontal line acting as resistance.

Conversely, if it hit and retests the lower horizontal line serving as the support, you can consider trading up.

If the price breaks out of the upper horizontal line (resistance) upwards and retests the level successfully, consider trading up.

Conversely, if the lower horizontal line (support) was broken downwards instead, and was successfully retested, it’s time to trade down.

  1. Trend Line.

The Trend Line is a drawing tool in technical analysis that runs diagonally across the price chart.

To qualify to be called a trend line, it must be drawn between a minimum of three pivot points.

The trend line is useful in marking significant levels in the price of an asset to aid in more accurate predictions of future price movements.

Making money with Olymp Trade using the Trend line is easy. The Trend line is basically used to connect three or more pivot lines to determine the overall trend of the market.

It may also be very useful in determining and drawing diagonal price ranges.

Having the general trend of the market by joining several pivot points, you can trade in the direction of the trend.

Up trend with trend line on Olymp Trade

Additionally, having drawn a diagonal price range can help you trade the range or breakouts.

Only ensure successful retesting of the levels marked with the Trend lines before you enter buy or sell positions when trading ranges and breakouts.

  1. Ray.

The Ray is a drawing tool in technical analysis that runs diagonally across the price chart. It has one endpoint while the other side goes on to infinity.

Ray is useful in marking significant levels in the price of an asset. This helps in more accurate predictions of future price movements.

The use of Ray to make money with Olymp Trade is more or less similar to that of a trend line.

Use it to connect at least three pivot points and it will extend to run indefinitely.

That way, it gives you a broader picture of the market trend than a trend line. You can also use it to draw indefinite diagonal price ranges as well as indefinite support and resistance levels.

If you use the ray to deduce the market trend, you can trade in the direction of the general trend. That way, you will bag significant profits.

If you use it to mark price ranges, ensure each level is successfully retested before entry. The same applies to support and resistance level trading as well as breakout trading.

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