How to Set Up the Five Minute “Momo” Strategy in Olymp Trade.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

What is the Five Minute “Momo” Strategy?

The Five Minute “Momo” Strategy is a momentum trading technique that relies on the confluence of the EMA with the MACD to pick trade entries.

EMA stands for Exponential Moving Average (EMA) while MACD for Moving Average Convergence and Divergence (MACD).

This trading strategy is applicable to the 5-Minute price chart of any asset, hence the phrase ‘Five minutes’ before the strategy name.

Lien and Boris Schlossberg, known Forex analysts, authored the Five-minute “Momo” strategy.

It is a simple strategy to set up and to use in trading.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

Now, you don’t just use any EMA settings.

The EMA applicable here is the 20-period EMA.

You can use MACD in its default settings.

EMA 20 and MACD are the only indicators you will require for this strategy.

If you are wondering how the setup for the five-minute “Momo” strategy looks like, then wonder no more.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

In today’s post, I will show you how it looks.

Here are the specifications:

  • Bullish Setup: The price has crossed above EMA 20 while the MACD histogram has shifted from below to above the zero line, not more than 5 histogram bars ago.
  • Bearish Setup: The price has crossed below EMA 20 while MACD histogram has shifted from above to below the zero line, not more than 5 histogram bars ago.

Setting Up and Trading the Five Minute “Momo” Strategy in Olymp Trade.

The five-minute “Momo” strategy is a simple momentum trading technique, as we have mentioned.

You do not need to do a lot on your charts and identifying the trade setup is so easy.

That way, the strategy becomes easy to set up and trade in Olymp Trade.

Here are the simple steps to setting up and trading the five-minute “Momo” strategy in Olymp Trade:

How to Set Up the Five Minute “Momo” Strategy in Olymp Trade.

  1. Change the Chart Timeframe.

The five-minute “Momo” strategy has the phrase ‘five minutes’ in it.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

Meaning, it is a strategy only applicable to 5-Minute price charts.

This is something we mentioned in the introduction as well.

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

If your chart is set on any other timeframe then, you must change it to the 5-Minute timeframe.

It is what the strategy requires of you.

  1. Set Up the Indicators.

From the introduction, the five-minute “Momo” strategy relies on the confluence between two indicators – EMA and MACD. EMA is simply the Exponential Moving Average while MACD is the Moving Average Convergence and Divergence.

The Exponential Moving Average (EMA) is a trend indicator that is used to tell the direction of a market trend.

The Moving Average Convergence and Divergence (MACD), on the other hand, is an oscillator used to tell the strength of a market trend.

A concurring confluence between the trend direction and its strength would serve as a powerful trading strategy, and that is what the five-minute “Momo” strategy is.

Click on the Indicators tab and choose EMA, then apply it on your chart, adjusting its period to 20.

Click on the same Indicators tab again and this time, choose the MACD and apply it in its default settings.

That way, only two tools will appear on your chart – EMA 20 and default MACD.

Done that?

If so, then it is time to proceed to spot a trade setup so that you can trade.

  1. Identify a Trade Setup.

The purpose of the indicators you set up is to help spot a trading signal or setup.

I hope you do remember how the bullish and bearish five-minute “Momo” strategy setups look like. Here is a quick reminder for you:

  • Bullish Setup: The price crosses from below to above EMA 20. The MACD histogram shifts from the negative side below the zero line to the positive side above the zero line. That MACD histogram shift should not exceed 5 histogram bars.
  • Bearish Setup: The price crosses from above to below EMA 20. The MACD histogram shifts from the positive side above the zero line to the negative side below the zero line. That MACD histogram shift should also not exceed 5 histogram bars.

Spot any of the two setups and then you will be best suited to proceed to the next step.

  1. Set Up Buy Stop or Sell Stop Pending Order.

Which of the two five minute “Momo” strategy setups have you identified?

Is it the bullish or the bearish setup?

Here is how to set up buy stop or sell stop pending orders depending on the setup you identified:

  • Bullish Setup: Once you spot such a setup, place a buy stop pending order 10 pips above the level EMA 20 is currently at.
  • Bearish Setup: If this is the setup you identified, place a sell stop pending order 10 pips below the level EMA 20 is currently at.

If your buy stop or sell stop pending order placed 10 pips or ticks away from the level EMA 20 is, finally gets triggered, then the price is in a good momentum.

It is meant to move significantly in the direction of your trade. Remember the five-minute “Momo” strategy is a momentum trading technique.

  1. Adjust Stop Loss and Take Profit.

The MACD and EMA combo does not pinpoint trade entries very accurately.

Therefore, Stop Loss for this strategy should be further away compared to other strategies.

Actually, the Stop Loss for the buy trade should be at the most recent swing low while that for sell trade at the most recent swing high.

Momentum trading techniques are meant to spot entries supposed to result in significant price moves.

In such a scenario, you cannot tell how long the move is likely to be. Therefore, letting your profits run is the best idea.

What that means is that you should have an initial Stop Loss as stipulated above.

In addition, trail your stop loss to lock in profits as the position grows in your favor.

Final Thoughts.

Was anything difficult as regards setting up and trading the Five Minute “Momo” Strategy in Olymp Trade?

It is as simple as that.

Simple tools translate into a simple trading strategy hence an easy manner of growing your trading account.

Use the five-minute “Momo” strategy in your Olymp Trade account and grow that account consistently and easily.

Happy Trading!

Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.

*Risk warning:

The information provided does not constitute a recommendation to carry out transactions. When using this information, you are solely responsible for your decisions and assume all risks associated with the financial result of such transactions.
 

Start Trading 

Related Posts


The CCI Divergence Trading Strategy

Top 5 CCI Trading Strategies for Olymp Trade.

What is CCI? CCI stands for Commodity Channel Index. The Commodity Channel Index (CCI) is a technical indicator that compares the current price of an asset to the average price over a given number of ....

Aroon Signal Threshold.

Top 5 Aroon Trading Strategies for Olymp Trade.

What is the Aroon? Aroon is a technical indicator that shows trend changes in the price of an asset and the strength of the trend. It also gives bullish and bearish entry signals. In matters ....

The DeMarker-Price Action Strategy

Top 5 DeMarker Trading Strategies for Olymp Trade.

What is DeMarker? The DeMarker is a technical oscillator that measures the demand of an asset, usually abbreviated as DeM. It works by comparing the most recent high and low prices to the previous high ....

Bearish Signal confirmation

Top 5 MACD Trading Strategies for Olymp Trade.

What is MACD? Are you new to trading and are wondering what MACD is? MACD stands for the Moving Convergence Divergence. It is one of those trading tools that technical analysis traders use to identify ....

Stochastic-Channel Trading Strategy.

Top 5 Stochastic Trading Strategies for Olymp Trade.

What is Stochastic? Did you just begin your journey in trading, tried to flip open that trading platform, found the stochastic indicator, and are wondering what sort of thing Stochastic is? Stochastic is an oscillator ....

Bearish Harami reversal candlestick pattern

How to Trade the Harami Reversal Candlestick Pattern in 2021.

What is the Harami Reversal Candlestick Pattern? The Harami reversal candlestick pattern is a two-candlestick trend reversal setup. Harami in Japanese means ‘pregnant’. It takes this name because it resembles an expectant mother. The pattern ....

Runaway Gaps

How to Trade Runaway Gaps in Olymp Trade.

What are Market Gaps? Market gaps are areas where the price skipped and did not trade. A market trading upwards may skip an area on the chart and the next candlestick opens higher than the ....

Observe Price Swings.

How to Identify a Trending Market without Indicators.

What is a Trending Market? A trending market is one whose price shows sustained momentum towards a particular direction. If the price shows sustained momentum upwards, then the market is trending upwards. However, if the ....

Is $100 Enough to Start Trading Forex?

Is $100 Enough to Start Trading Forex?

If you are new to Forex and Fixed Time Trading then chances are you have wondered how much you need to start trading. Should you start with the minimum amount brokers allow as a minimum ....

Inside bar trading strategy

How to Make Money Trading the Inside Bar Strategy.

What is the Inside Bar? The Inside Bar is a candlestick whose whole dimension is contained within the dimension of a previous candlestick. It is a candlestick pattern that comprises first the mother candlestick, then ....

Pullback Trading

How to Trade Pullbacks in Olymp Trade like a Pro.

What are Pullbacks? To trade pullbacks on Olymp Trade like a pro, you must first understand what pullbacks are. Pullbacks, also called retracements, are periods of price correction before the primary trend resumes. The price ....

7 Best Trading Strategies for Volatile Markets.

7 Best Trading Strategies for Volatile Markets.

Volatile Markets are those markets where the price rises and falls rapidly and sharply. That means there are very fast and wide price fluctuations in the markets. Did you know that volatile markets present the ....

7 Best Trading Strategies for a Small Account.

7 Best Trading Strategies for a Small Account.

Do you have or intend to hold a small Forex or Fixed Time Trading Account? Are you wondering which strategies are suitable for a small account? Then you are in the right place. In today’s ....

7 Best Day Trading Strategies that Work.

7 Best Day Trading Strategies that Work.

If you are a day trader, you must be looking for day trading strategies that work. But your search from other sources must have always proven unfruitful. That might be the very reason you are ....

How to Make Money with Non-Directional Strategies

How to Make Money with Non-Directional Strategies

What are Non-Directional Strategies? Non-Directional Strategies are neutral strategies that are not based on the direction the market moves. Whether markets move up or move down, these strategies will generate profits. They are the complete ....

Forex Overlapping Fibonacci

Understanding the Forex Overlapping Fibonacci Trade Strategy

What is the Forex Overlapping Fibonacci Trade Strategy? The Forex Overlapping Fibonacci Trade Strategy is a forex trading strategy which utilizes the confluence of Fibonacci levels with other Fibonacci levels, support levels, resistance levels, pivot ....

Top fixed time trade strategies for Olymp Trade

Top Fixed Time Trade Strategies that Work in Olymp Trade

Top Fixed Time Trade Strategies that Work. Breakout Strategy. Gap Fill Strategy. Support and Resistance Strategy. Moving Average Strategy. 1. Breakout Strategy. This is one of the common forex trading strategies. Prices of assets move in ....

5 Best Trend Trading Strategies for Beginners.

5 Best Trend Trading Strategies for Beginners.

Did you just begin Forex Trading in Olymp Trade? Then chances are, you have traded with the naked eye, lost, and are now looking for best beginner forex trading strategies to improve your winnings.  And ....

Best Trading Strategies - How to Use Technical Indicators to Come up With Olymp Trade Trading Strategies.

5 Best Trading Strategies of 2020

Can I tell you one thing about trading strategies? They need continuous improvement. Market conditions are not rigid but fluctuate now and then. That calls for flexibility and adaptability on the part of the trader ....

Best Strategies for Olymp Trade FTT

7 Best Strategies for Olymp Trade FTT Trading

Imagine a captain sailing a ship without the compass direction and the map of the voyage, what do you think would happen?  Wouldn’t that be an aimless and almost impossible journey? Well, such is trading. ....

Read More
 
Visit Website.
New to Olymp Trade?
Important!
Review
REGISTER
1 Best Brokers in 2019
  • Register on the platform
  • Complete the interactive tutorial
  • Choose one of the strategies
  • Practice using a demo account
  • Make a deposit and become an expert
Earn real money with your phone.
If you participated in the Joon Online February Contest and your Olymp Trade Trading ID is-

1. 65088443 (from the United Arab Emirates) you are the winner of our brand new PS5

2. 71239571 (from Mexico) - you are the first runners up and you win $500
3. 42372579 (from India) - you win $100
4. 70050992 (from Benin) - you win $100
5. 66245309 (from the United Arab Emirates) - you win $100
6. 65522959 (from India) - you win $100
7. 71249170 (from Colombia) - you win $100

contact us via email - info@joon.co.ke to collect your prizes


Don't have an Olymp Trade Account? Register Here.


Comment on this post