The Only Indicator You’ll Ever Need — Transcript

Full transcript

1. 0:00I found an indicator that  is dangerously accurate.
2. 0:03And as you can see, it works fn amazing. One day I was searching the internet for what
3. 0:08I hoped to be the best indicator out there. Now some people would call this a waste of
4. 0:12time because there s not an indicator out  there that can actually work that good.
5. 0:16And they are probably right. I checked indicator after indicator.
6. 0:21And All of these indicators were  promising huge gains but when I
7. 0:26backtested them. They were all complete sht. I was actually pretty depressed because I felt I
8. 0:32was being lied to by these indicator creators. Promising these huge gains, but all I was
9. 0:37getting in return was my stop loss getting hit. After hours of searching through indicators, I
10. 0:42stumbled upon one that looked somewhat promising. I added it to my chart expecting some mediocre
11. 0:47indicator that would right somewhat of the time. But then I checked the chart history
12. 0:52I was blown away from how accurate  this indicator appeared to be.
13. 0:56It was doing a surprisingly good job at  finding where the trends started and ended.
14. 1:04I was starting to get extremely excited  because I thought I stumbled upon a gold mine.
15. 1:09But there was a huge problem. Upon closer inspection,
16. 1:12I was starting to see some problems. This indicator was doing a spectacular
17. 1:16job at finding good trades when  the market was trending like this.
18. 1:19But where the problems started arising  was when the market was moving sideways
19. 1:24and didn t have a lot of movement. That s when the indicator started
20. 1:27making false signals and really brought  down the winrate of the indicator.
21. 1:30So I had to think of a way to completely  redesign this indicator. A way to alter
22. 1:35the mechanics and absolutely change the  mathematics and calculations to where they
23. 1:39only calculated upon the solut- I changed the settings.
24. 1:42Yeah, I just changed the settings. First things first.
25. 1:45You need to get on tradingview. If you don t yet  have it, ill leave a link in the description.
26. 1:49Next go to your chart and click indicators. You are then going to search ema trend
27. 1:53meter . Click this one right here. Next Click this litter gear icon to
28. 1:58enter the settings menu. Now one of the main reasons
29. 2:00why this indicator was inaccurate was  because it was a little to sensitive.
30. 2:04And it would enter a buy or sell  from just a little movement.
31. 2:09To make sure we only enter when there is  a greater chance of a trend to occur.
32. 2:09We have to raise the default settings. Change the ema base line to 13
33. 2:12The ema fast to 21 The ema medium to 34
34. 2:16And then finally the ema slow to 55. Then, click the styles tab and
35. 2:21uncheck this shapes box right here. Then wallah your indicator is more accurate.
36. 2:28But there s still a major problem. So sure, we made the indicator less
37. 2:32sensitive so it will only give us a signal  when there is a greater chance of a trend.
38. 2:36But we didn t really fix the  problem I mentioned before.
39. 2:39It s still giving us signals when  the market is consolidating.
40. 2:42And as we all know, indicators in  consolidating markets don t work that well.
41. 2:47So we have to find a solution to that. After hours of research of trying to
42. 2:52find a solution to this problem.  I finally found the perfect fit.
43. 2:56This. Okay, I promise its cooler than it looks.
44. 3:00To add it to your chart, type in stochastic  momentum index and select this one by surj,
45. 3:06surjith, surjithctl- this guy. Go to the settings of this new indicator.
46. 3:10Go to the styles tab and change the color of the  stochastic to white. Then raise the opacity.
47. 3:16So now we have 2 indicators on our chart. One for finding trends.
48. 3:20One to make sure we aren t consolidating. The perfect duo.
49. 3:23So whats the strategy? First, you have to select a timeframe.
50. 3:26Now this indicator will work for all timeframes. But from my backtesting, I found that it
51. 3:31works extremely well on higher time frames. So id suggest using the 1 hour, 4 hour or daily.
52. 3:38So we ll just use the 4 hour  for the examples in this video.
53. 3:41The strategy is actually pretty simple. First, you If you are interested in
54. 3:44entering a long trade. You first need all 3  of these lines to be green just like this.
55. 3:50If 2 of the lines are green and 1 is  still red, we do not enter this trade.
56. 3:55All 3 of the lines must be green  in order to enter a trade.
57. 3:59If you simply just do this in itself on a higher  time frame and look at the chart history.
58. 4:04You will see just simply doing  this works very very well.
59. 4:09Like just look at this. This area the indicators
60. 4:11green. Chart is going up. This area the indicator is
61. 4:14red. The chart is going down. It works extremely well. Im
62. 4:17actually quite surprised. But in old tradinglab fashion,
63. 4:20we can make it better. So now we have this 2nd indicator.
64. 4:23First thing. We need this white line  to go beneath this bottom blue line.
65. 4:27This will make sure there is  volatility in the market and
66. 4:30there s movement or a pullback happening. Next, to make sure we have bullish momentum,
67. 4:34this white line must cross above this red line. If we get this combination we can enter a trade.
68. 4:41So lets go over a trade example. After that I  ll give you one more indicator that changes this
69. 4:46indicators performance by a land slide. First we go on the 4 hour time frame.
70. 4:51Next we wait for the trend meter to have  all lines green. So we re good here.
71. 4:56Next we wait for 2nd indicator to  go below the blue line, like this.
72. 5:01Next, we wait wait for the white line  to cross and go above the red line.
73. 5:05Once this happens. Check your trend  meter and make sure its still all green.
74. 5:09We re good. So we can enter the trade. Now this is the point where you can kind
75. 5:12of put your own twist on the indicator. The take profit and stop loss can be
76. 5:16built around your own liking. I found pairing these indicators
77. 5:19with fair value gaps, orderblocks,  and liquidity works extremely well.
78. 5:24These are kind of advanced topics so im not  going to over all that in this video, I ve
79. 5:29made multiple videos on these topics so if you  don t know what im talking about check those out.
80. 5:34If you do know what im talking  about, good you saved some time,
81. 5:37you can apply it to this indicator. An alternate way you can use this
82. 5:41indicator is what im going to call the noob  way. It still works extremely well but just
83. 5:45know you can get a lot more out of this  indicator by adding other confluences.
84. 5:50You re going to enter. Set your stop loss below the recent low.
85. 5:54Then set your take profit at  a 2:1 risk to reward ratio.
86. 5:58Let price play out and boom  you got a winning trade.
87. 6:01Okay lets go over a short example and then I will  give you that final indicator to sky rocket the
88. 6:06results of this indicator. First make sure all 3
89. 6:09of these lines are red this time. Next make sure the stochastic momentum index s
90. 6:13white line has gone above this top blue line. Then finally the white line should
91. 6:18cross below the red line. Check again and make sure you
92. 6:21trend meter is all red still. Enter the short trade.
93. 6:24Set your stop loss above the recent high and set  your take profit at a 2:1 risk to reward ratio.
94. 6:30And boom you got another easy winning trade.
95. 6:33Alright, how about we increase the  accuracy of the strategy bit more eh?
96. 6:37I don t know why I said eh im not Canadian. It  just kind of felt good in the moment moving on.
97. 6:42Now this part is completely optional, but when I  added it to this strategy it increase the winrate
98. 6:47by 9%. Which, may seem like a small number but  in the long run that could be the difference of
99. 6:53thousands of dollars if not 10 s of thousands. Now one of the big problems with this
100. 6:58indicator is consolidating markets. 99% of the losing trades this indicator
101. 7:03had were taken in consolidating markets. So if we found a way to avoid these trades,
102. 7:09it would make this indicator absolutely insane. Luckily for you, I found the perfect solution.
103. 7:14I created an indicator that  does all of that for you.
104. 7:18it will give you important metrics  like trend, momentum, volatility,
105. 7:22and volume. And will automatically  calculate if its bullish or bearish.
106. 7:27But not only that, it will automatically tell  you if the market is consolidating or trending.
107. 7:33Hopefully that little hamster wheel is  spinning in your head right about now.
108. 7:37You go to tradinglab.ai to get the indicator.  I ll also leave a link in the description.
109. 7:42The only thing that sucks is that my indicator  on mt5. Which is another charting platform.
110. 7:48So you do have to have both tradingview  and mt5 open at the same time.
111. 7:53So that kind of sucks But let me tell you,
112. 7:56its 100% worth it for the results. So we are going to do the exact
113. 8:00same thing but just add the trend table. Make sure the trend meter is all green. Make sure
114. 8:05the white line dips below the blue line. Then make  sure the white line crosses above the red line.
115. 8:10Next go to the trend table on mt5. In an ideal world we want to see
116. 8:15all of these metrics green. But most importantly we want
117. 8:18the consolidation metric to say trending If we see this, it means we can enter the trade
118. 8:23knowing we have a great chance of winning it. Enter the trade. Set your stop loss below recent
119. 8:29low. Set your take profit to a 2:1  and boom you got a winning trade.
120. 8:35This strategy works extremely well. And to be honest, Im kind of
121. 8:39proud of myself for finding it. So I just had to share it with you.
122. 8:41Try it out yourself, let me  know how it works for you.
123. 8:43Thanks for watching, and ill  see you guys next time.