Simple yet very powerful (advanced version)



New member
hi everyone ,

hope dong well in markets !!!

with the above thinking lets discuss our technique of going long short or reverse in a trend
indicators /studys required
.1 moving avg expo. periods 9
2. moving avg expo periods 20
3. trend reversal (original version cloud with price not the advanced)
5. fractal indicator ( i will post a separate indicator post where u can find the code i use for fractals , its easily can be found in PATTERNS menu also
but i like to use it as the study so i will post the one i m using )

below are some rules to follow, its good if you follow them as a beginner of this technique
1. dont go counter trend trade , means if overall trend is uptrend only trade long side avoid short trades if you are not a an advance trader
because exit positions with profits is very difficult subject in markets

2. trade when market is trending , not in sideways , HOW TO KNOW chk the rsi levels and at same time check the 20 EMA if its flat dont trade and if you trade in this period your buying should be at rsi 40 and selling should be at rsi 60 will explain with few examples but better not to go in ranges bound markets as you never know which direction the first break of the range will take place

first step
setting up indicators as per pictures
and open the daily chart as per picture to see which way we should trade as posted picture its clearly said RSI ON daily chart is above 40 , actually its above 60 as well as its above previouse resistance levels so its a clear uptrend also can be seen on ema 9 crossing ema 20 for bull run ,
so we should be trading long side

SO now we are in uptrend on daily charts

2nd step :-
use the 1 hour chart or 30 minute chart for entries or trades as swing trader and 5 minute chart for day trading ,
in above situation doing day trading on 5 minutes charts everytime rsi close above 60/65 levels u can go long easily
first i post a pic of hourly chart here

COMMENTS mention in the chart pic how to see or understand the chart with indicators

3rd step , looking at the 5 minute chart because i know after knowing above facts everyone will be wishing to day trade and caught
every bull run and every pull back , which is really not required in trading but its human nature , even after years i am still like this

LETS LOOK AT 1 MIN CHART in this situation and i am sure at 1 min chart every long and short is tradable

YOU Will find by time the rsi will act 100% same on daily and hourly chart as u can see the clearly tradable trend in 1 min chart , but on daily it requires weeks
and on hourly to become visible it requires days

now we should go to advanced level for identifying a trend reversal with the help of these indicators and the involvement of RSI

trend will reverse from here or not , i really don't know because it depends on market everything moves later but price moves first so price is going to decide which way rsi is going further but suggestion here can be taken as get ready not to hold a trade too long how ever if rsi crosses above 65 situation changes immediately.

special tips for day trading , if you are taking reversals the opposite fractals are your stop loss if prices moves above the fractals they are actually reverse the trade indicators i have seen in 99% cases prices will never move above it and if it moves above it they are going to make a new high as when they move above it , rsi is already at 70 levels or above so
one should consider take only long trades until major charts are showing long , here the rsi becomes very helpful
as reversals on shorter time frames need quick exit with profits also

this technique and concept is too long , i realize that can write a book on it , so many charts and so many situations i cannot complete all in here in one post
i suggest make a separate group discussion on this in discord or here if possible

till then hope you like the post , thanks for your time and efforts if u ll test it ,

do you have the codes for the above studies sets? Or where can I find it? tks

Similar threads