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There are numerous trading strategies in the field of trading. however, it is important to use a proven trading strategy that can give you actual results. therefore in this article, I am going to share one of the most popular trading strategies that actually works and can give you a great result. The strategy I am talking about is called the Barcode strategy on the Olymp trade. In this article, I will cover everything about the Barcode strategy and how you can use them to place high-quality trades on the Olymp Trade platform.
What is the Barcode strategy on the Olymp trade?
The Barcode strategy is a technical analysis strategy. that is made from the composition of a candlestick chart and the De marker indicator. via this trading strategy, you can analyse the market security and predict the upcoming trends and reversals using the same. The name “Barcode” is derived from the appearance of the indicator lines, which resemble a barcode with the lines moving around the overbought and oversold levels.
In case, you don’t know:
Demarker indicator or you can call it DeM indicator, in short, is a technical analysis tool developed by Tom Demark. The DeM indicator is used to identify the upcoming trends and reversal points in the market by analysing the rate of change of a price moment. The indicator is made from the three most important components i.e histogram lines, 0.700 line, and 0.300 line. The line 0.700 indicates the market overbought level and line 0.300 indicate the market over-sold level. and histogram lines oscillate around these two levels which generate buy and sell opportunities.
How to set the Barcode strategy on the Olymp trade?
If you want Olymp Trade to set the indicator for you. click on the VIP strategy button and select Barcode strategy from the menu.
In case you want to set it by your own, click on the indicator button and search for the Demarker indicator in the list.
Now, reduce the period of the indicator to 1 min. and select histogram lines from the menu.
Place 1-minute trades using the Barcode strategy
When you see two or three continuous green candles plus two or three histogram spikes above line 0.500. It signals a bullish trend and here you can place a 1-minute buy trade.
Similarly, When you see two or three continuous red candles plus you see two or three continuous histogram spikes below line 0.500 it signals a bearish trend and here you can place a sell trade.
If you have ever purchased a product online you must have seen a barcode at the end of the box. using the barcode the sellers can easily identify the product. similarly, using a barcode strategy you can easily identify trends and reversals.
Barcode strategy is a very effective strategy that is made with the composition of a candlestick chart and a Demarker indicator. This strategy has high a win rate and is easy to use. you just need a proper practice on the Olymp trade demo account. I will also suggest you use a very good money management strategy.
I wish you the very best of luck!!!