on August 19, 2022 37 views
In this video I am going to be revealing a very easy secret trading strategy that can lead you to extraordinary results. I know, this may sound too good to be true, but I want you to stick with me for this video.
Before we start, be sure to subscribe to our channel so that you don’t miss on any of or new videos. With that being said, lets get into today's video.
First, let us discuss the indicators that we will use in our strategy.
The first indicator that we will be using is called as the Half trend indicator. The indicator is available on trading view as well as other platforms. If you want to use the indicator on Tradingview, then follow these steps.
First, open up a chart on Tradingview. Then click on the Indicators button. A small window like this will apear. Then, type in halftrend in the search bar. Now, click on the first indicator. Make sure that the name of the creator is 'everget'.
Now, you have successfully plotted the indicator. This is how the indicator will look.
If you are using any other trading platform, then, just google the indicator and download it for your particular trading platform. But, in my opinion, using tradingview is much easier.
Now, An important point to remember here is that, I am not the creator of this indicator. A lot of so-called traders, especially on YouTube, try to sell this indicator as their own. But, I want to make sure that I am not one of them. I don’t know who created this indicator. But, it certainly isn't me.
Now, lets get back to this indicator.
On the indicator we can see that there are three lines. The central line is the actual half trend indicator. The upper and the lower lines are nothing but 2 ATR band that are placed above and below the indicator.
When the price close above the upper band for 2 to 3 candles, the central line will turn blue and a small blue arrow will appear below the half trend. This indicates that the price is in a short term uptrend.
Similarly, when the price closes below the band for 2 to 3 candles, the central line will become red and a small red arrow will appear above the indicator. This indicates that the price is in a short term downtrend.
For the purpose of our strategy, we only need the central line. So we can remove the upper and lower band by unchecking the show channels option. Another change is that we will change the amplitude value to 4.
Now the indicator is completely ready for our strategy.
So, when the half trend is blue. We will only look for buying opportunities. On the other hand, when the half trend is red, we will only look for selling opportunities.
Now let us talk about the second indicator that we will use in this strategy. That is the RSI indicator.
The RSI stands for relative strength indicator. As the name suggests, the RSI indicator shows the relative change in price over a particular period of time. The default settings for the RSI are set to 14 period. Therefore, the RSI shows the relative change in the price over the last 14 candles.
The RSI is an oscillator. Hence, the value of the indicator is always between 0 and 100.
Generally, when the RSI is above 70, it is considered to be in an overbought condition. This means that the price has become expensive and we can expect a down move.
On the other hand, when the RSI is below 30, it is considered to be in an oversold condition. In other words, the price has become cheap and we can expect an upmove.
For our strategy, we will modify the settings of the RSI to suit us. Hence, we will change the RSI period from 14 to 2. We will also change the overbought level to 90 and change the oversold level to 10.
This will give us a fast moving RSI.
Now, we will combine the RSI and the Halftrend indicator to catch small pullbacks in a trend.
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