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Don’t Use Forex Trading Indicators Until You Watch This…

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Don’t Use Forex Trading Indicators Until You Watch This…

hey hey what’s up my friend so in today’s video you’ll discover some of the best forex indicators Network for example you’ll learn how to use indicators to identify momentum reversal so you can predict market selling points we also talked about how to set a proper stop-loss so you don’t get it all stopped out of your tricks prematurely then we will talk about how to use indicators to identify explosive breakout traits about to occur I breakout traits that you know it’s off the radar and you know people are not paying attention to this is something that you learn as well and how to actually better time your entries with low risk so all this and more in this video but first right if if you have not done so right hit the thumbs up button and subscribe to my youtube channel the link is below hit the notification bell this way right whenever I publish a new video you’ll always be updated sounds good then let’s get started so the first thing that I want to talk about is that before you can use any indicators or put any indicators on your chart you have to know what you want out of your indicators every indicator on your chart but to have a purpose okay because without a purpose then the indicators are on your chart just you know to confuse things right there is no reason for it if you don’t know what’s the purpose of your indicators let me give you an example let’s say you want to buy a car and you’re looking in the market I want to buy the best car out there which is the best car well here’s the thing right what are you looking for in a car if you’re looking to race then maybe you could get a Ferrari or a Lamborghini if you’re looking for a car with a excellent fuel economy that maybe could get a toyota vios if you’re looking for a car to you know house many people maybe a toyota I wish so you can see that when you want to find the best car it depends on what are your needs and when you have to use the best trading indicators it depends on your needs does it make sense okay so this is important on and most traders neglect it so let me repeat once more before you put on any single trading indicator on your chart you have to know what is the purpose and this is what we are going to dive in right now so for example let’s say your purpose is to identify momentum reversal in the market so one thing about the markets is that you know when there is let me just illustrated when there is strong momentum let’s say a strong momentum coming into a level where here is a large big bullish candle right smack into resistance there’s a good chance that this level right the price would reverse at this level right because if you think about this right the buying pressure started here and if the price were to hit down lower bias would only step in right at this our previous market structure and support so this good chess the market grievers all the way back all the way back down to retest the support compare this right to another variation of this our price section where you don’t get a strong momentum instead what you get is a let’s say a stair stepping price action higher highs and higher lows into resistance this type of price section right the market usually very reverse right it has more difficulty because these are all pockets of swing low where buyers could come in to push the price higher so this is why whenever you want to trade reversal in the markets right reversal a market structure reversal at support resistance you always want to see right let me just draw it again you always want to see strong momentum coming in to a level this is what I call a power move right strong momentum coming to a level large big body Kendal’s so not just the thing sometimes it can be difficult to define what is strong momentum right especially for traders who are new to trading you are not really versed in price action trading it can be difficult to kind of quantify what is strong momentum and this is where the MACD histogram can help you so you can see that I’m not just you know throwing the MACD histogram in your face by saying you know look for a momentum reversal no I explain the principle behind why are you looking for a strong momentum reversal because you want to have a high probability of the price reversing and a certain market level and a certain price level so let me give you an example so you can see over here this okay this is the channel soybean meal and over here I got this make the histogram shown over here just remove this so you can see right now at this point clearly there is a strong momentum coming into this area of resistance ma-maybe traders who are new day do not know how to note identified you can look at a magnet his doctor see that this this bars over here the histogram is reaching a pic over here this tells you that there is strong momentum in the markets you compared it to previous pics are all relatively low right this one here this one here and this one here it is all relatively low competitive current momentum so this tells you that there is strong momentum in the markets and on top of it the price came into this area of resistance followed by this uh that cloud cover some sort of a bearish reversal pattern so this tells you that there’s a good chance that the market could reverse at this level does it make sense so you can see that how this make the histogram comes into place that it’s helping you to define what is a power move in the market what is a strong momentum in the market that’s the purpose of this maybe histogram that we are you know looking it right now so you can see it over here right when histogram shows strong momentum and market structure like support resistance trendline etc and confirm right by a reversal price pattern the market is likely to reverse so reversal price pattern could be you know shooting star hammer and stuff like that but the main purpose of our maybe histogram is to help us define what is a strong momentum okay so let me just share with you another example so this one is the soybean meal another one would be oil case we can see again here oil over here this uh to an s2 price action trader you know that this is a relatively strong move coming to a level but trader sometimes have difficulty you know looking at their they say oh that’s a Power Move okay don’t worry this is where the maybe histogram can help you you can see that again to make the histogram right making a very strong bearish momentum move towards the downside look at the do we call this the house I call it the steepness of it right it’s really a pretty steep towards the downside in fact it’s the lowest point right that I may be has made relatively over to the last other 100 hundred 50 candles okay so this tells you that there is strong momentum towards the downside but this doesn’t mean that you go along immediately right remember the magnet histogram only tells you where the momentum is strong a weight right now it’s strong strong towards a downside where we want to take a trade right we are looking at multiple factors so right now it’s at the price coming to this area of support okay and it’s confirm right by so called this a bullish price pattern right this is what we call I don’t have the exact term for it something like a bullish engulfing pattern but not quite but you can see that clearly this is a bullish reversal price pattern right so traders can look to buy over here right at this area of support with a strong momentum towards the downside okay because you know that whenever whenever there’s a strong momentum right it could be just as quickly reverse back towards the upside why is that because the opposing pressure right would only come in at a later part so you can see that over here shut this up you might find sellers at this level over here compared to a move right it comes down like this like this right if you buy over here over here pocket of sellers could exist right to push the price lower over here my in this case we have a very nice clean move down low or nice power move down and this power move is defined by this uh maybe histogram that you see over here okay makes sense okay so first one right maybe histogram it helps you to identify momentum reversal in the markets moving on how do you identify explosive breakout traits about to occur in this case you can also use the magnet histogram a kid and one thing to point out is that different indicators have different purposes but it’s not to say that only the magnet is too grave can identify explosive breakouts it’s also not to say only the magnet histogram can identify momentum reversal because that’s not true there are other indicators can that can also meet this purpose for example you can use this one Bollinger Bands you can use the Keltner channel but for this video I’m just sharing with you the make the histogram because the main thing that I’m trying to point out is that you always must have the purpose in mind and then finding the right indicators to meet that purpose okay so anyway moving on how do you identify explosive breakout traits about to occur make the histogram is one of it okay so so before we talk about the breakout right you must understand that how the market moves the price action right is that whenever the market is about to make a big move in the market okay sorry whenever the mug be the price about to make a big move okay volatility in the market tends to shrink this means that let’s say prior what a breakout okay volatility in the market you see it over here it tends to shrink okay like this okay once volatility has decreased then it usually makes a big move in the market so if you look true back at your chats right whenever some of the biggest move of the market that occurs right it’s usually it usually happen right when most traders are not paying attention because the market is in a low-volatility environment so now the question is how do you identify this low-volatility environment well that’s where the maybe histogram comes into play again see the purpose so now let me just share with you a few examples okay so one very popular word market is Bitcoin okay so you can see over here just look at this look at the histogram pretty much flat deadline like a date patient in the hospital did this tells you that volatility of them in the market is really low and remember I just said that prior to the price making a huge breakout in the markets volatility in the market is usually very low not many traders are pay attention to it because the market is boring it’s where you should be high alert right you know high alert more right and I hate the market is about to do something big in this case right magnet is the grip clearly right gives you ample warning sign now you don’t have to use the magnet histogram if you are again right someone who can read the price section of the markets because traders who see this chart right they would know that volatility over here based on the range of the candles in a string but again indicators make your life easier you can simply look at this make me histogram and notice that the the pick and throw is just pretty much went missing okay so this tells you that volatility in the markets is low and not only that price has approached this area of resistance over here okay so this tells you the here you know prices that resistors volatility is low the price is hovering here for a long period of time this which has an market good break out so you can see over here right well obviously this is a cherry-pick chat market did break up from here again low-volatility environment low-volatility environment there we have a break up volatility expand well – ring again and expend you see what I mean market moves from a period of low volatility to high volatility and vice-versa so another example here a Bitcoin just go back a little bit in time you can see again same phenomenon high volatility in the markets low volatility in the markets at this point traders you know our market is boring big cut is boring let me move on to something else something more exciting my little did they know that this is about to make a huge move in the market can right so we can see that low-volatility environment again coming to this area of support this area of support you can expect a cluster of stop orders right to be lying below this this lows this lows and this even this loss over here so in a price breakdown right when this classed off stop orders get hit right very strong selling pressure would come in and then you go pretty much kaboom okay so this is what I mean by using the maybe histogram to identify a low-volatility environments in the market because once you can identify low-volatility environments in the market especially when it leans against market structure like support resistance this is where you wanna get ready for an explosive breakout make sense okay let’s see uh just one more example okay because that this is so this is so powerful okay so again dollar against the Chinese yen so this one over here right okay you can see that it has an area of resistance over here volatility of the market you’re getting smaller as well so what it’s likely to happen well when volatility of the market is low when it’s approaching a key market structure like support resistance in this case resistance get ready for fireworks okay so yeah okay so I think you get my point right let’s let’s let’s move on okay so expect volatility to expand soon thirteen right how do you set a proper stop-loss right so you you don’t get stopped out unnecessarily so here’s the thing about freedom is there you know often right one of the biggest mistakes that I see traders big is that they whenever let’s say they do buy it support okay to buy it support it by over here where will they put your stop-loss well if you look at it all the textbook so it causes the gurus they tell you to put your stop-loss right just below the area of support right because they are reason is that your stop-loss should be what do peeps below support because once the price hits it right your trade is invalidated and you should get out of the trade well they’re only is true if support is a single line on your chart but here’s the thing support is not a line on your chart it’s an area so just because it breaks down by one two three four five pips doesn’t mean it support level is invalidated it’s an area in the area okay so how do you define that area or rather how much buffer should you give right so that you know your trait has enough room to breathe so this is where the average courage indicator comes into play because it measures volatility in the markets what if what if you could set your stop loss right based on this market structure so instead of setting it one two pips below it you said it 180 are below it so ATR stands for average storage it measures the historical volatility of a particular markets of a particular particular time frame for example hero dollar let’s see the daily time frame has an average ATR of 70 pips so what it does is that you can use this market structure and set your stop-loss one eighty are below support so in other words let’s say your price level at support it supports let’s say X you can set your stop loss right X minus 180 are in assuming let’s say it here it’s a 70 pips right there is your stop-loss and let’s call it Y simple so this way even if the price were to you know trigger below the lows of support you might not get stopped up because you’re giving your trade a buffer room to brief right compared to all the other traders who got you know stripped out of their trades right the moment they are their stop scizor below support okay so let me share with you a few examples so you can see over here I think the crude oil Watergate is a pretty good example so you can see over here the price right you have a nice strong move power wolf into a support you have this reversal on this this candle over here again what I usually do is to have my stop-loss right 180 are below this look so this way or my stop-loss is not gonna be smack below this low right you could we have some buffer below it so what I do is uh okay let me just remove this indicator first just hide this and I’ll input the average true range indicator so I typically use the 20-period ATR since there’s 20 trading days in a month click ok so right now you can see that if I were to go long right I would quit find out what is the current ATR value and if from the looks of it it’s about $2 right let’s make my life easier two dollars so what I’ll do is I will identify the lows of this candle over here let’s assume that the lows of this candle it’s $50 I know it’s not $50 but you know just to make my life easier so $50 – 180 R which is $2.

00 my stop loss will go at $48 so $48 is somewhere about here okay let me just put a red line for you hit 48 bucks you know change this to red pink okay let’s do it okay so this is my stop loss so you can you can see that I mean it’s a little huge to be honest right get about 48 dollars there about okay forty forty seven ninety okay so there is my stop loss so you can see that even if the price were to trigger below this low want to trigger below this low I’ll not get stopped up because my trade has enough breathing room to withstand the sudden spike down lower and if you think about this even if the price even if the price let’s say comes down lower it comes down lower at this point does it mean that support is broken well not quite because remember support is an area right this could be an entire area of support this could be an entire area okay so what you want to do is to set your stocks right away from that area there’s no point putting your stop-loss within that area if you know that area is going to serve as a area to prevent a price from you know hitting down lower so you wanna set your stops away from that area so what I share with you is just a technique right – to give your trade right enough buffer enough room to brief right so you don’t get stopped out of your treats unnecessarily and to be honest this is a wait way too much right if to be a little bit exact right the lows here it’s about fifty dollars and fifty four cents so my stop loss right should be forty eight dollars and fifty cents there about okay so it should be about forty eight dollars and fifty cents there would be more somewhat more accurate okay so they’re about here that would be my stop loss hey this is how you said your stop loss 180 are below this look another example I can see over here let’s say dollar yen okay so if you look at dollar yen you can see that again over here or let’s say for example you shot the breakdown of this loss maybe the market is in a downtrend right series of lower highs and lower lows and you shot the breakdown of this low stinging the market could go down lower so again where do you put your stop loss right many traders will just put your stop loss at this highs over here just above this highs and if you think about this right the price the price what you could do is just come up higher into this area of resistance and then reverse down lower in this case doesn’t mean that the resistance is is bridge no because remember resistance support like support it’s an area on your chart so this you should treat this as an area so when you want to set your stops right you want to set it outside of the area and then again you can just use the one ATR technique I share with you just find out what is the one ATR value in this case the 180 R value it’s about sixty cents just calculate the highs over here and on skitty cents and that would be your initial stop-loss okay make sense okay this is us this is a important stuff as well okay so this is how you use the ATR indicator right to send your stop-loss right identify the key market structure and set your stop-loss 180 are away from it this absolutely you know avoid getting stop hunter where the prices you know hits the highest and they reverse from in right you can escape a lot of those situations all right if you look to your chats right how many times have you no get stopped out of your traits just by a few pips because the price just occurred highs just to cut the lows it there are out of the trade okay so we don’t get to happen next you can also use indicators right to identify area of value so what is area of value so evil value are simply levels on your chart areas of your chat right where you want to trade from dry for example your to buy it support you want to buy at a trendline okay and this are not the only ways to define area of value because when the market is trending moving every track can serve as a very useful form right as an area of value so so just follow me for a while so you know that support resistors can be an area of value but the thing is that when the market starts trending trending strongly prior your area of value will change so for example let’s say the market trend is strong you’re not gonna expect a price to retest our let’s say that this swing lower this area of support or here or here because you know that the market is in a strong trend it tends to do a shallow pull back before continue it higher so now you have to adjust right how you define your area of value so this is so important right to actually understand what is the current market structure and then using the right tools to trade it so in this case if the market is in a strong trend the 20-period moving average right it’s a it’s a good place to be looking for traits if the market is it a healthy trend this is where they pull back a slightly deeper the 50 ma are a useful moving average right to identify your area of value so let me just share with you an example case I just closed the MACD first and get out my 20 MA okay so if you look at this again okay you can see that again this one over here don’t lay it right tested once traded lower tester twice traded lower and always back here at this area of value and on top of it right you have this a so-called bearish engulfing pattern right that reverse at the 20 MA and reverse at this uh this market structure this area of a previous support then resistance over here so hey this is a little a possible set up to go short and again right you can just set your stops 180 are above the heights in this case the market right now it’s a it’s not working too well in your favor but really it doesn’t matter right trade this all about mix 1000 traits not just one individual tree so just focus on a concept that I’m trying to share with you right here okay so moving on let’s see what else can I share go okay go so if you look at go you see over here okay this are all the pockets of swing low here here and here and you can see that when the market when the tread is strong right is seldom retest the previous area of support seldom retest the area of support so this is where you need to redefine your area of value redefine where you can treat from and in this case rice is the tread is strawbe right you can see that the price did not reach beyond the 20ma you can look for trading setup in the 20-period moving average so in this case you saw that there is a bullish price rejection over here at the 20-period moving average one over here right so this is a potential trading setup for you to go long okay so this is for goal if you just look back a little bit more in time you can see a cane right price here okay when the trade is strong it does a retest resistance it doesn’t retest the sweet high at all so again you have to find out right different trading approach to enter the market so if you know that the trade is strong you can look for retest of the near 20ma right for example this one here the retest of the twin eme or alternatively you can look to trade the breakdown of the swing low in this case the breakdown of this swing low and then have your stops again right just beyond the moving average or the swing high okay let’s see one more example it’s palladium okay so just look at this type of chatter you know that this is a strong trend right now I’m gonna introduce to you a what I call a healthy trend so you can see that when you compare the chart of the earlier goal and right now palladium you notice that in a healthy trend the pullback is deeper but a concept is still the same right you want to identify the area of value and usually in a healthy trend what you’ll notice is that the price tends to retest previous resistance that support or previous support and resistance so in this case right this is in an uptrend I can see that it retest previous resistance 10 support right this one will be the resistance okay in this case and so the next one over here okay not always but there’s good chance they because of the deeper pullback that could actually retest the previous resistance to the support so this is where the 50 ma usually align right with the previous resistance resistance that support okay so pay attention to me right this really is an area of value on your charts right now it uh it is definitely a level and Eva that you want to identify your trading opportunities okay so don’t don’t get too fixated on just trading off support resistance or trend line because when market structures go into a trending more a strong trend healthy trend right you realize that it seldom come back and retest you know your horizontal SR levels on the chart okay so this is a moving average okay helping you to identify area of value on your chart and finally right before we end of end of today’s session I don’t talk about how you can actually combine multiple trading indicators so it doesn’t mean that you can only have one indicator on your chart because once you know the purpose of your indicator you can actually combine them right and you know set up a trading strategy a trading plan for example again let’s go back to this this one over here let’s say for whatever reason right you are looking to buy at this this area of value maybe there’s a bullish close above the 50 MA whatever okay so you when you go long okay at the same time you have to know how much of a stop-loss you should use then you can look at the ATR indicator finalized the ATR value in this case is about $22 then you just take the lows – $22 and that could be your stop-loss so in this case you can see that you’re combining both moving average and the average to reach and that’s not the only way to do it right you can for example let’s say a combined mcdee histogram with the average you can use a Bollinger Bands with the average to reach all right so there’s a lot of ways you can use your indicators as long as you know what is the purpose of your indicators right so this is so important that it bears repeating again okay so you can combine multiple trading indicators alright as long as you know what’s the purpose so as a quick recap right number one know the purpose of your indicators this is so so so important okay and something that I have you know him at home right from the start then I share with you how they make the indicator I how to make me histogram helps you identify momentum reversal and explosive braking traits we talk about how the ATR indicator helps you set a proper stop-loss how moving average help you to identify area of value and we talk about how you can also combine multiple trading indicators if you have multiple purpose if you need multiple purpose if you have multiple needs right in your trading okay so with that said right before I conclude today’s video if you wanna learn more about price action trading because clearly you can see that price action trading and indicators they complement one another and you’re gonna learn more about price action trading you can go down to my website gate trading with Rainer calm the link is above here right and download this guide right this one over here the ultimate guide to price action trading right click this orange button it’ll set it your inbox for free and you realize that you know once you learn about price action of the markets there you know right which are the appropriate indicators to use so what I’ve just shared with you is just a fraction just obviously the tip of the iceberg there’s really a lot more of other indicators to use once you know what you’re looking for right and how indicators can make your life easier okay so with that said uh go ahead download this guide any feedback comment right just let me know below the comment section I’ll do my best to help and hit the thumbs up button subscribe to my youtube channel and I will talk to you soon you

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