How to Avoid Bad Trades Using This Free TradingView Indicator! — Transcript

Full transcript

1. 0:00all right we're back what's up it's
2. 0:02thrax trades today in this video we're
3. 0:05going to be talking about an indicator I
4. 0:06actually made yesterday I coded an
5. 0:09indicator we're going to go over what it
6. 0:11is how to set it up how to use it why
7. 0:13you would want to use it whether it's
8. 0:15even going to be a benefit or not to use
9. 0:18this indicator but first let me kind of
10. 0:20talk about why I made the indicator so I
11. 0:24really made this indicator for me and
12. 0:27specifically my strategy I just thought
13. 0:29to make it public and for free on
14. 0:32trading view if anyone else found it
15. 0:34useful by all means they can go ahead
16. 0:37and use it I just want to have this
17. 0:39video out there just in case anyone
18. 0:40wants to use this they'll know how to
19. 0:42set it up they'll know how to adjust it
20. 0:44so that it works best for their scenario
21. 0:47so just a quick overview of what the
22. 0:50indicator is so it is a multi-timeframe
23. 0:54sentiment indicator and basically what
24. 0:56this indicator is doing is we have 7
25. 1:00time frames here listed on our indicator
26. 1:03it is determining whether the sentiment
27. 1:05for that time frame is either bearish or
28. 1:07bullish based off of some technical
29. 1:09indicators that it's calculating the
30. 1:11data off of and then it is giving us a
31. 1:14lower time frame overall and higher time
32. 1:16frame overall sentiment and the way that
33. 1:19the overall sentiments are calculated is
34. 1:22for the first three time frames those
35. 1:25should be your lower time frames it has
36. 1:27a two out of three rule so if two out of
37. 1:29three of the time frames are bullish
38. 1:31then it's going to give it an overall
39. 1:33bullish sentiment if it is bearish two
40. 1:35out of three are bearish then it's going
41. 1:37to give it a bare sentiment same goes
42. 1:39for the higher time frame the only
43. 1:41difference with the higher time frame is
44. 1:43that the higher time frame is doing a
45. 1:45three out of four rule so if three out
46. 1:47of four of your higher time frames are
47. 1:49bullish it'll be bullish if three out of
48. 1:51four are bearish then the overall
49. 1:53sentiment for the higher time frame is
50. 1:54going to be bearish you can adjust the
51. 1:56time frames to whatever you want just
52. 1:58keep in mind the first three time frames
53. 2:00are going to be your lower time frames
54. 2:02the other four time frames following the
55. 2:05first three so you know four to seven
56. 2:07are going to be your higher time frames
57. 2:10so let me just kind of go into why I
58. 2:12created this indicator so the reason I
59. 2:15created this indicator is because I'm
60. 2:16typically placing trades on a one or 5
61. 2:20minute chart and I do typically have
62. 2:22like a 15minute chart pulled up I have
63. 2:25multiple screens but it is hard to kind
64. 2:27of keep track of every single chart um
65. 2:30and so I thought it' be easier if I just
66. 2:31kind of condensed it all down into a
67. 2:34simple table chart just to be able to
68. 2:36keep your eyes on one screen kind of get
69. 2:38an understanding of what's going on and
70. 2:40the reason why is because you know
71. 2:42sometimes I'm so zoomed in on the charts
72. 2:44on the one minute I forget to you know
73. 2:46take a bird's eye view or zoom out to
74. 2:49see what's happening on higher time
75. 2:50frames now as you know higher time frame
76. 2:53sentiment or analysis is very important
77. 2:55when it comes to intraday trading even
78. 2:58if you're scalping um I mean of course
79. 3:00it might change a little bit if you're
80. 3:02scalping on like let's say a 5-second
81. 3:04chart or 15-second chart but nonetheless
82. 3:07you know having an overall idea of where
83. 3:09the market is actually moving and how
84. 3:12the sentiment looks for all the time
85. 3:14frames combined it should really give
86. 3:16you a better idea on on what side of the
87. 3:19market you want to be on when taking
88. 3:20trades I mean if the sentiment for lower
89. 3:22time frames and higher time frames are
90. 3:24all bearish you don't really want to
91. 3:26take a long position I mean you can you
92. 3:29just have lower probabilities of it
93. 3:30actually working out and vice versa you
94. 3:32know if everything is showing uh bullish
95. 3:35lower time frame overall is bullish
96. 3:37higher time frame overall is bullish um
97. 3:39you don't really want to be taking
98. 3:40shorts you can but probabilities of it
99. 3:44working out is going to be slightly
100. 3:46lower so it's just making sure that when
101. 3:48you are taking trades you're going to be
102. 3:49on the right side of the market now keep
103. 3:51in mind this is an indicator no
104. 3:54indicator I don't care what anyone tells
105. 3:55you is not going to make you profitable
106. 3:57this is just a tool you should not be
107. 3:59taking trades based off of this
108. 4:00indicator you should have your strategy
109. 4:03you should have your methodology for
110. 4:05actually taking trades your own rules
111. 4:07and this should just be a tool to help
112. 4:09with confirmation or Confluence when it
113. 4:13comes to actually making your decisions
114. 4:14on how to trade that is very important I
115. 4:16do not want to have you taking trades
116. 4:20solely based off of the time frame
117. 4:22analysis showing bullish or bearish so
118. 4:24that's just a quick overview on why I
119. 4:26created the indicator I don't know if
120. 4:28anyone's going to find it helpful if
121. 4:29they do great if not doesn't really
122. 4:31matter to me it's free if you want to
123. 4:33use it you can if not doesn't matter so
124. 4:35I'll kind of go over what it actually is
125. 4:38so essentially it's called the
126. 4:40multi-timeframe sentiment this one is
127. 4:43the pro version I have a version that's
128. 4:46actually the first one I created but I
129. 4:48wanted to make it more customizable for
130. 4:49everybody so it's basically combining
131. 4:52price action volume analysis and
132. 4:54multiple technical indicators to
133. 4:56actually provide uh like a market
134. 4:58analysis um across different you know
135. 5:01time frame combinations you can
136. 5:03customize it it's fully customizable you
137. 5:05can modify any of the seven time frames
138. 5:07for analysis it is using Dynamic lower
139. 5:10time frame and higher time frame
140. 5:12calculations and what are those
141. 5:13calculations actually based off of so
142. 5:16how are we actually coming to find out
143. 5:18whether something is bullish or bearish
144. 5:20well I have it set up on a few different
145. 5:22things so we're in the settings now for
146. 5:24the for the indicator as you can see
147. 5:26it's fully customizable you can adjust
148. 5:28all of the time frames just keep in mind
149. 5:30the first three those are your lower
150. 5:32time frames the next four those are
151. 5:34going to be your higher time frames this
152. 5:36is how I currently have M setup which is
153. 5:38showing here you do have time frame
154. 5:40visibility so if you want to turn all of
155. 5:44these
156. 5:45off it'll still be calculating for the
157. 5:48overall but it just won't show on the
158. 5:50chart if you want them on you can keep
159. 5:52them on or you can remove some or add
160. 5:54some doesn't matter but I want to talk
161. 5:56about how is this actually calculating
162. 5:59what is showing on the chart so we're
163. 6:00using a few different things here we're
164. 6:02using the EMA we're using RSI we're
165. 6:04using macd and we are using Binger bands
166. 6:07and then we are using volume analysis so
167. 6:10it's like vwap and on balance volume you
168. 6:12can decide whether or not you want to
169. 6:14use these or not use these in your
170. 6:16calculations you can also adjust the EMA
171. 6:19length the RSI length the macd settings
172. 6:23the Binger band length and standard
173. 6:25deviations and the most important thing
174. 6:27here that you want to consider is the
175. 6:30weight the weight is basically how the
176. 6:33output is getting calculated this might
177. 6:35be a little confusing for some people
178. 6:36but this is important the output because
179. 6:39we're using multiple technical
180. 6:41indicators it is getting scored off of a
181. 6:44point system so if you add more weight
182. 6:47towards a certain indicator or technical
183. 6:49indicator it is going to give it a
184. 6:52higher weight percentage when it's
185. 6:53actually calculating the output and the
186. 6:55reason why this is important is because
187. 6:58you're going to need need to adjust the
188. 7:00weight of these technical indicators for
189. 7:03your specific strategy if you don't want
190. 7:05to adjust the weight or you don't want
191. 7:08to figure that out you don't need to I
192. 7:10have the MTF the multi-time frame
193. 7:13sentiment the first version it's not
194. 7:15really customizable if you want to just
195. 7:17plug and play and go you can but it is
196. 7:20better and it's more powerful to
197. 7:22actually be able to adjust these
198. 7:23settings and I have my settings adjusted
199. 7:25they're going to look different than
200. 7:26yours cuz the defaults are different but
201. 7:29I I have weights set specifically for my
202. 7:32strategy to give you an understanding of
203. 7:35why I have it set up like this my
204. 7:37strategy I'm typically looking for
205. 7:39reversals now sometimes it's with the
206. 7:41trend sometimes it's not with the trend
207. 7:44but for the most part I am looking for
208. 7:46reversals so to give you an idea on why
209. 7:50my settings are set like this so I
210. 7:52currently have my EMA weight set to two
211. 7:54which is technically 20% of the total I
212. 7:57also have my on balance on balance
213. 8:00volume set to two which is another 20%
214. 8:02of the total the reason why I have it
215. 8:04set like this is because it helps me
216. 8:06validate moves I'm seeing at key levels
217. 8:08I'm looking for and that's just for my
218. 8:10strategy right I also have I have the
219. 8:13RSI weight set to one which is lower and
220. 8:16I also have the Binger band weight set
221. 8:18to 1.25 which is lower and the reason
222. 8:21for that is since I'm already using
223. 8:23footprint charts for my executions I
224. 8:25don't really need Binger bands or RSI
225. 8:29um to identify like exhaustion or
226. 8:32absorption so I just lower the volume on
227. 8:34I lower the weight for that right macd I
228. 8:37do have it set kind of in a medium
229. 8:39weight it's at 1.75 and it just helps me
230. 8:42confirm momentum during moves from key
231. 8:45levels that I'm looking at and you're
232. 8:46going to have to really adjust this for
233. 8:48your strategy so are you looking for
234. 8:51reversals are you typically you know
235. 8:53trading Trend continuations it really
236. 8:57just depends right so you can play
237. 9:00around with it one thing I like to do is
238. 9:02I do like to use AI so you know if you
239. 9:05describe this indicator or you go to the
240. 9:08publishing page that's in the
241. 9:09description below and you copy and paste
242. 9:12what the indicator is you give it a chat
243. 9:14GPT you explain your strategy and you
244. 9:17ask it what settings you should be using
245. 9:19it'll give you some settings that you
246. 9:21know might make sense and then of course
247. 9:23you want to back test it a little bit
248. 9:25and the last thing here is just visual
249. 9:27settings it is customizable so you you
250. 9:29can adjust any of the colors here you
251. 9:31can adjust the position of it if you
252. 9:33want to be on the top of your chart on
253. 9:35the left side of your chart right side
254. 9:37Center you can do so and so the idea on
255. 9:41how you want to actually use this is you
256. 9:44want to use it to confirm the setups
257. 9:47that you're taking so let's say you're
258. 9:49looking for a long position it would
259. 9:51make a lot of sense if the sentiment for
260. 9:53all the time frames are bullish you know
261. 9:56you're going to take along everything's
262. 9:58looking bullish lines up it makes sense
263. 10:01vice versa for when you're looking for a
264. 10:03short if the sentiment overall for a
265. 10:05lower time frame or higher time frame is
266. 10:07bearish and you're looking for shorts
267. 10:09it's going to make a lot of sense right
268. 10:11if you're looking for Longs and
269. 10:12everything is bearish it's not going to
270. 10:14make much sense you might get lucky sure
271. 10:17you're not going to have as much as a
272. 10:19continuation move or a bigger move if it
273. 10:22Remains the opposite of your position
274. 10:24you're basically just trying to utilize
275. 10:26this in Confluence with your actual
276. 10:28strategy just to make sure you're on the
277. 10:30right side of things when you're
278. 10:32actually going to make trades and I'll
279. 10:34kind of do a quick replay here and show
280. 10:36you what it looks like it's a very
281. 10:37simple indicator I just wanted to give a
282. 10:40quick explanation on how to set it up
283. 10:43what it is one thing I also want to
284. 10:45mention too is if you load up the
285. 10:49indicator and when you load it up it's
286. 10:51loading up in a Paine below like a pain
287. 10:54down here all you have to do is go to
288. 10:56the actual indicator on the bottom pain
289. 10:59click the three dots move to existing
290. 11:02pain above and then it'll move it to
291. 11:03where your chart's at so if that's an
292. 11:05issue for you you know you can always
293. 11:08just move it up it's very simple to do
294. 11:10so I'll give you an example of what this
295. 11:12kind of looks like so obviously you know
296. 11:14we're in a we had a sell off on Friday
297. 11:16it was a pretty big one too so obviously
298. 11:18everything is going to be bearish so in
299. 11:20a situation like this where everything
300. 11:22is bearish it's not likely that you're
301. 11:24going to be looking for some long
302. 11:25positions right it just wouldn't make a
303. 11:27lot of sense you're going to be you're
304. 11:28basically trying to go against the
305. 11:30current so it's not going to make a lot
306. 11:31of sense to do so now let's say we're in
307. 11:35a situation like this right where we
308. 11:37might flip from bearish into a bullish
309. 11:39sentiment so let's watch how the actual
310. 11:42indicator here adjusts so we're on a
311. 11:445-minute time frame it's calculating the
312. 11:475 minute the 15 minute the 30 minute for
313. 11:49our lower time frames and it's
314. 11:50calculating the 1 hour 4H hour daily and
315. 11:53weekly for our higher time frames just
316. 11:55so you know what we're basing this off
317. 11:57of we're going to be currently looking
318. 11:59looking at the 5 minute time frame and
319. 12:01we're just going to be watching what it
320. 12:02does so as price starts to go lower
321. 12:05we're in a bearish situation right
322. 12:08you're going to be looking for a
323. 12:09continuation until this switches to
324. 12:11bullish for lower time frame and higher
325. 12:14time frame overall the moment it starts
326. 12:15to switch to bullish then of course you
327. 12:18could be looking for a reversal but
328. 12:20until that happens you don't really want
329. 12:22to be looking at long positions or if
330. 12:24you do you got to make sure that you're
331. 12:26right so now that we're switching into a
332. 12:28bullish sentiment obviously any pullback
333. 12:30into let's say an imbalance or a fair
334. 12:32value Gap or whatever you're looking at
335. 12:34support you know you're going to be
336. 12:35looking for an entry on the Longs good
337. 12:37thing about this indicator and what you
338. 12:39can do is you can use it actually to
339. 12:41time your exits so let's say you got
340. 12:43into a long position down here and price
341. 12:46is continuing the moment that you start
342. 12:47seeing that the indicator is indicating
343. 12:50that you know everything is bearish now
344. 12:52you can consider yourself to try and
345. 12:54start getting out of this trade
346. 12:56otherwise if you put your stop to break
347. 12:58even right it's eventually just going to
348. 13:00come back and hit your break even if the
349. 13:02overall lower time frame and higher time
350. 13:04frame remains bearish if you're in a
351. 13:06long one of the important things you
352. 13:08want to look at when you're actually
353. 13:10trading depending on what time frame
354. 13:12you're actually trading on is going to
355. 13:14be the difference on how you're going to
356. 13:16look at this but you want to keep your
357. 13:18eye on the higher time frame overall
358. 13:20sentiment realistically that is more
359. 13:22important when it comes to making
360. 13:24decisions the lower time frame
361. 13:26sentiments can obviously fake you out
362. 13:28you'll find a good way to use it if you
363. 13:30want to use it the way I use it is I'm
364. 13:33basically looking for the lower time
365. 13:35frame and higher time frame overall
366. 13:37sentiments to align and then I'm looking
367. 13:39for an entry whether it's a fair value
368. 13:41Gap or one of my other levels um I use
369. 13:44stat map levels I use digital time
370. 13:46theory levels and if all lines then of
371. 13:49course I am going to take a position and
372. 13:51I'm going to continue to Trail my
373. 13:53stoploss until the sentiment changes
374. 13:55into bearish if I'm going along and vice
375. 13:58versa so it's a free indicator you know
376. 14:01if you want to play around with it and
377. 14:02use it with your strategy you're more
378. 14:05than free to do so if you have any
379. 14:07questions I'm more than happy to answer
380. 14:09them in the comment section below it's a
381. 14:11super simple indicator there's not a lot
382. 14:13to it except for the settings you want
383. 14:16to make sure those are right for your
384. 14:17strategy um that could make or break
385. 14:20whether or not this is even going to be
386. 14:21useful for you is setting up those
387. 14:23settings if you have questions on how to
388. 14:25do it you can either ask or you can use
389. 14:27chat GPT or AI to give you an answer it
390. 14:31does a pretty good job obviously it's
391. 14:33just an indicator it's not the secret
392. 14:36sauce it's just a tool to help you out
393. 14:38in deciding Direction and deciding
394. 14:41sentiment so keep that in mind do not
395. 14:44make any trades based off of just lower
396. 14:48time frame and higher time frame
397. 14:49sentiments it's not going to work you're
398. 14:51you're going to need to use it with your
399. 14:52strategy so that's about it go ahead go
400. 14:55in the comment section let me know your
401. 14:57thoughts let me know if if you have any
402. 14:59questions if there's anything on here
403. 15:01you want me to change more than happy to
404. 15:03do so if you have any recommendations
405. 15:05for an indicator I might make it might
406. 15:08not depends if I find it interesting
407. 15:10enough and uh the link for this
408. 15:12indicator is in the description below if
409. 15:14you want to read up more on it I do have
410. 15:16a setup guide on it and I also have just
411. 15:19an analysis of what it is so I'll catch
412. 15:21you guys next time we trade peace