What is the Yum-Yum Continuation Trading Pattern?
The Yum-Yum Continuation Trading Pattern is a trend continuation trading technique used to enter trades in the direction of the trend.
The Yum-Yum trade set up takes advantage of existing trends and breakouts in such trends serve as entry triggers.
This is not a one-time a day kind of strategy.
It can be applied every other time on any asset as long as you are ready to trade.
Simply put, the pattern presents so many trading opportunities which translate into more profits.
So how does the Yum-Yum Continuation Trading Pattern look like?
It is not a specific pattern of candlesticks but a set of events that must follow each other in order.
Here are the specifications:
- Bullish trend Yum-Yum set up: Existing Uptrend + Upward Breakout of the Uptrend with a wide-range bullish bar that exceeds the 10-period average range.
- Bearish trend Yum-Yum set up: Existing Downtrend+ Downward Breakout of the Downtrend with a wide-range bearish bar that exceeds the 10-period average range.
Do you wish to know how you can set up this kind of pattern and trade it in your Olymp Trade account?
Of course yes.
In this post, find the answers to your questions as regards how to set up and trade the Yum-Yum Continuation trading pattern in Olymp Trade.
It is a simple trading pattern you can easily spot and trade to grow your Olymp Trade trading account.
Also Read: – HOW TO CATCH TRENDS IN OLYMP TRADE WITH HEIKEN ASHI CANDLESTICK ANALYSIS.
Setting Up and Trading the Yum-Yum Continuation Trading Pattern in Olymp Trade.
As earlier mentioned, the Yum-Yum Continuation Trading Pattern is a simple trade setup that you can easily spot.
Here are the simple steps to setting up and trading the Yum-Yum Continuation trading pattern in Olymp Trade:
Set Up the Indicators.
On a window below the main chart, you need to apply the Average True Range (ATR) indicator of 10-periods.
Also, on the same window apply the volume indicator.
The ATR presents a continuously and horizontally moving line while the volume indicator presents vertical bars.
Only those two indicators are used in the Yum-Yum Continuation Trading Pattern in Olymp Trade. If you have applied them to your chart, then you are done setting up your chart and ready to use the pattern.
Establish an Existing Trend.
The second crucial step is to establish an existing trend.
The Yum-Yum continuation trading pattern takes advantage of existing trends and so without a definite trend upwards or downwards, it won’t work perfectly.
Use price action or indicators such as moving averages to establish the existing trend of the market.
A market forming higher highs and higher lows, having the price trading above major moving averages and upward sloping trend lines is an uptrend.
On the other hand, a market forming lower highs and lows, having the price trading below major moving averages and downward sloping trend lines is a downtrend.
Establish what kind of trend the market is in.
Afterward, you can then proceed to the next step.
Should I reiterate that there must be a clear market trend before you proceed to look for this trade set up?
Mark the Recent Swing High or Swing Low.
Have you established the kind of trend the market is in?
Then you need to mark certain levels, which when broken, will translate into an entry trigger.
The levels you need to mark are none other than the recent swing high on an uptrend or the recent swing low on a downtrend.
Use a horizontal line to mark the high of the recent swing high if you established an uptrend.
On the contrary, use a horizontal line to mark the low of the recent swing low if you established a downtrend.
Identify a Trend Breakout.
You are used to breakouts from price ranges but here is a trend breakout.
So what exactly is a trend breakout?
It is the upward break of the level of a recent swing high of an uptrend or the downward break of the level of a recent swing low of a downtrend.
Uptrend: Wait for the price to break above the horizontal line at the level of the recent swing high with a wide-range bullish bar that exceeds the 10-period average range.
Downtrend: Wait for the price to break below the horizontal line at the level of the recent swing low with a wide-range bearish bar that exceeds the 10-period average range.
What is this wide-range bar we are talking about?
It is a longer than average candlestick that occurs at the same time as a volume bar which pops above the ATR 10 line on the same window as the volume indicator.
If you spot a breakout with such a wide-range bar that exceeds the 10-period average range, then that triggers your entry.
Set Up Buy Stop or Sell Stop Pending Order.
Uptrend+ Upward breakout of recent swing high with a wide-range bullish bar = Buy Stop Pending Order at the high of the wide-range bullish bar.
Downtrend + Downward breakout of recent swing low with a wide-range bearish bar = Sell Stop Pending Order at the low of the wide-range bearish bar.
Note: If the Pending Order is not activated within 1 to 3 candlesticks, you should consider canceling it.
A breakout should show a market urgency and where the urgency lacks, then such breakout may as well be a fake-out.
Adjust Stop Loss and Take Profit.
The entry trigger is a wide-range candlestick, meaning it is too long.
Placing the Stop Loss at the opposite end of the entry would be risking a lot of your account.
That way, the best thing to do is to use a Trailing Stop Loss following every bar that closes in your trade direction. That will serve as both a Stop Loss and Take Profit in that case.
For the buy order, trail your stop upwards at the low of every candlestick which closes upwards.
For the sell order, however, trail your stop downwards at the high of every candlestick which closes downwards.
Setting up and trading the Yum-Yum Continuation Trading Pattern in Olymp Trade is that simple.
Try this today and catch high probability trade setups to grow your Olymp Trade account faster and easier.
How to Make Money with a Garbage Collection Business in Kenya in 2023
Garbage Collection stopped being a thing of the government once the service was devolved in Kenya....
Top 20 MLM and Marketing Companies in India
Multi-Level Marketing (MLM) Companies are Network Marketing or Referral Marketing Companies. They...
Online Jobs That Actually Pay | 13 Best Freelancing Jobs for 2023
How has your 2023 been so far, Are any resolutions met? Don’t worry, 2023 is yet another year...
Tagged With : bearish continuation candlestick patterns • bearish continuation patterns • bullish continuation patterns • continuation breakout • continuation candlestick patterns