How to Increase Your Chances of Making Money in Olymp Trade with the Holy Grail Trading Set-up.

What is the Holy Grail Trading Set-up?

The Holy Grail Trading Set-up is a trading technique that involves the use of the Average Directional Index (ADX) and the Simple Moving Average (SMA) to spot high probability trade set-ups.

We introduced the Holy Grail trading set-up as the 10^th on the list of ‘10 Pullback Trading Strategies That Will Help You Make Money in 2021’.

The Holy Grail Trading Set-up is of course not the Holy Grail to trading.

It is a popular and common trading technique, which is simple and straightforward, hence the name Holy Grail.

Linda Bradford Raschke and Larry Connors named it so for such reasons.

The Holy Grail Trading Set-up uses a 14-period Average Directional Index (ADX 14) and a 20-period Simple Moving Average (SMA 20).

These two are the only tools required, then combined with price action for signal derivation.

The function of the Simple Moving Average (SMA) is to be used together with price action to determine the direction of the market trend.

The role of the Average Directional Index (ADX) on the other hand, is to measure the overall strength of the trend in any particular direction.

Are you a trader in Olymp Trade wondering how you can make money using the Holy Grail technique?

In this post, I will show you how you can increase your chances of making money in Olymp Trade with the Holy Grail trading set-up.

The Holy Grail trading set-up is a trend following technique that involves trading pullbacks, hence increasing chances of profiting from almost all correctly entered positions.

 

Increasing Your Chances of Making Money in Olymp Trade with the Holy Grail Trading Set-up.

1. Apply the ADX and SMA on the Chart.

The Average Directional Index (ADX) and the Simple Moving Average (SMA) are at the core of the Holy Grail Trading Set-up.

The first step is therefore applying them on your price chart and making the necessary period adjustments.

Click on the indicator toolbar and then choose the Average Directional Index (ADX). Adjust the ADX period to 14 and then apply it to the chart.

Click on the indicator toolbar again and then choose Simple Moving Average (SMA).

Adjust the SMA period to 20 and apply it to the chart as well.

All indicators required for the Holy Grail Trading Set-up are up and running. The next thing to do is to proceed to the next step.

 

2. Establish the Direction and Strength of the Market Trend.

The Holy Grail Trading Set-up works perfectly where the market is in a healthy uptrend or downtrend and not trending sideways or weakly in any direction.

Therefore, establishing the market trend parameters (direction and strength) is an essential step in using the set-up to make money while trading.

So how do you establish the direction and strength of the market trend?

By using the Simple Moving Average (SMA 20) applied on the chart, price action, and the Average Directional Index (ADX 14).

Does the price form higher highs and higher lows?

Has the price moved from below to above SMA 20 and is now trading above the SMA for at least 8 to 10 candlesticks?

Then has ADX 14 just begun reading above 30? If the answer to all the 3 questions is yes, then such is a healthy uptrend worth considering.

On the other hand, is the price forming lower highs and lower lows?

And has the price moved from above to below SMA 20 and is now trading below the SMA for at least  8-10 candlesticks?

Then has ADX 14 just begun reading above 30? If yes to all the 3 questions, then such is a healthy downtrend worth considering.

3. Look for Retracements.

The Holy Grail Trading Set-up is a trend following technique that utilizes pullbacks or retracements to define entries.

Therefore, once a trend is in a particular direction (as defined by SMA and Price Action) and strong enough (as defined by ADX), then the next thing is to look for pullbacks to know where to buy or sell.

Let us remind ourselves how healthy trends for the Holy Grail Trading Set-up consideration look like:

Uptrend: The price forms higher highs and higher lows, crosses from below to above SMA 20, and has the ADX reading above 30.

Downtrend: The price forms lower highs and lower lows, crosses from above to below SMA 20, and has the ADX reading above 30.

Now, on a healthy uptrend, you will be looking for downward pullbacks towards SMA 20.

On a healthy downtrend, however, you will be looking for upward pullbacks towards SMA 20.

If you spot such pullbacks accordingly, then you have spotted an entry point into the market. You can proceed to the next step.

4. Set Up Buy or Sell Stop Pending Order.

Has the price retraced down to SMA 20 on a healthy uptrend?

Then place a Buy Stop Pending Order at the high of the pullback candlestick (one which touches SMA 20).

When the price breaks above such candlestick, it is meant to continue with the primary upward trend and the buy trade will profit.

On the flip side, has the price retraced up to SMA 20 on a healthy downtrend?

Then place a Sell Stop Pending Order at the low of the pullback candlestick (one which touches SMA 20).

Again, when the price breaks below such candlestick, it is meant to resume the primary downward trend and the sell trade will profit.

5. Stop Loss and Take Profit.

Set your Stop Loss for the Buy Stop Pending Order just below the low of the pullback candlestick (One which touches SMA 20).

If the price breaks below that candlestick, then such would have been a fake signal.

You will exit the trade early enough.

Set the Stop Loss for the Sell Stop Pending Order just above the high of the pullback candlestick.

If the price breaks above that candlestick, then the conclusion would be that such a signal was fake.

You will exit the trade early before further losses.

Take Profit for either position should be set in accordance with proper risk to reward ratios.

The least risk to reward ratio you can always take is 1:2.

Wrapping Up.

You might be having your own strategies for making money trading in Olymp Trade.

But to increase your chances of making money in Olymp Trade with high probability trades, apply the Holy Grail Trading Set-up.

It is as simple as discussed above, and highly profitable.

Happy Trading!

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