Hey! What's up everyone?
My name is Ajwritescrypto.
I am here to do a Lux Algo tutorial for you today.
I'll just start off by saying Lux Algo is the best indicator,
system, program, whatever you want to call it,
that I've ever seen on the market.
Lux Algo is not just a one-stop shop,
one thing that tells you what to do.
Lux Algo is a body of work.
Lux Algo is an encyclopedia of crypto knowledge of crypto trading.
Ever since I started using Lux Algo,
my win rate went through the roof.
Like, here is AJ's win rate before Lux Algo,
and then here's my win rate once I got Lux Algo
and understood the ins and outs, how it works.
First of all, keep in mind that there is a lot to Lux Algo.
There are a bunch of actual over 50 free indicators that you can start using today on TradingView,
as I'll show you right here.
There's Lux Algo Premium, the patterns and the oscillators,
which you have to pay to get.
First of all, in crypto, it's very important that you invest in yourself,
that you invest in your grind, in your hustle.
You want to do anything you can to give yourself a better chance
to win the most amount of trades.
This is a numbers game.
And to do that, you need to have the numbers on your side.
You need to have the statistical edge
on the rest of the people that don't have the insight,
the insight that you have from this indicator.
So here are all the free things that you could check out on Lux Algo
if you're considering buying it, if you're on the fence.
And I could seriously make a video on every single one of these free indicators here.
I really like the--
the Moon Phases Strategy is fun.
I really like the McDonald's indicator.
I use the Fibonacci Grid every day,
the Swings High/Low,
the Squeeze Index.
There's so much good stuff here.
And I really implore you to take the time to learn what all this stuff means,
how to use it.
You're just going to learn from it.
You're just going to become a better trader.
That's really the best thing that you could do to improve your chances to win.
is to have an edge on everyone else by using tools that everyone else doesn't use.
Let's jump into the chart here.
This right here is the Bitcoin 24-minute chart.
I'm going to have it on a bar replay
to show you my thoughts and what I would do in this situation
and how to time the market perfectly.
What I'm using here is Lux Algo Premium.
If you go to Premium,
you go to the settings here,
you go to inputs.
I like to use the Scalper method.
It just makes sense for me.
I like to start my position before it goes up.
And I want to get out of my position before it goes down.
It sounds easy, but it's very hard to do.
And it will take a lot of time, a lot of experience,
to get to the point where you can do it like it's second nature.
So what you want to keep in mind on down here on the dashboard,
it'll say optimal sensitivity right now is at 30.
So you want to change this number here to 30
so it lines up with that.
I like to use Reversal Zones, the Trend Catcher and then the Dashboard,
which we already talked about.
So we click OK on that.
And we're back to here.
Down here is the Lux Algo indicator.
There's a couple different things you can do with this.
So there's the Advanced indicator,
which is the one I have right now.
There's the RSI.
That is also very important.
I will come back to the RSI.
There's the MACD.
Actually, you could use these in a stack,
but I don't have that set up right now
because I'm recording on a screen share like this.
And then there's also the Ultimate Stochastic,
which is very easy, cool to use.
Green when it's going up, and it's red when it's going down.
And when it switches from green to red or red to green,
it's a sign to you, like, "Hey, maybe you should get in."
So Lux Algo will give you a bunch of signals on when to get in.
And you don't ever want to start your position based off of just one thing.
You want to find confluence.
And what I mean by confluence,
you want a bunch of different things to line up.
You want a bunch of different things to tell the same story
because when all is making sense,
when all the things are telling you the right thing,
that's when you get in on the trade,
and that's when you make the most amount of money.
So let's jump into this here.
I'm going to press play on the bar replay,
and I'm going to kind of walk you through this whole thing.
So I'm waiting on this here to bottom out so I can go into a long, okay?
So as you see here, we're starting to turn around,
but we're still in this reversal zone here.
This is still red.
We even came down some more.
Here we go down the hill.
This yellow line here is the main floor,
the main support from the big drop back in June.
I have this line drawn on there so I know when we come down and touch this line,
we're either going to go straight down through it
and price discovery mode for the bears,
or we're going to bounce off of it, and it's a perfect time to long for the bulls.
So as you see here,
we came down here.
We bounced off this line.
If we switch back to the RSI here on the oscillator,
boom, RSI,
we're completely, completely overheated,
completely oversold,
so when it gets completely oversold like this,
the RSI is really important here.
You want to look at the RSI.
And as you can see down here, it's completely oversold.
It's all the way down here.
For the settings for the RSI,
the stock setting for overbought is 70 and the oversold is 30.
I like to use an 80/20.
That's just my personal preference.
That's just what I do.
I'm comfortable with that.
That's what I've been trading with.
So I'll set it up like that.
So boom, here we are.
So we're still below the 20.
We're right at that floor line.
And we're coming up. But I wouldn't go long here just yet.
Even though some people are trying to catch a falling knife,
and you actually would have won if you're going along here,
that's too--
that's risky business.
You will never time the bottom perfect.
And you'll never time the top perfect.
The money is made in the middle.
And the money you make in the middle is the best,
most consistent money you can make.
So I press play on the bar here again.
We'll go back up the hill.
And we'll talk about how to manage this trade.
So we came back down.
We're still fighting here.
I'm still waiting. I'm being patient.
Keep in mind, this the 24-minute chart.
I like to use the 24-minute chart.
It's just what I do.
I'm comfortable with that.
And just like you're going to find your own strategy,
you're going to find your things that you're comfortable with.
And this is just my personal preference, in case you were wondering.
So here we are.
We bounced off the floor here.
And this is where the trade starts.
This is where things get interesting.
This is where we find the confluence.
So a couple things here.
Right here, we got this little green triangle.
Right here.
That's a buy signal.
We also are leaving this reversal zone.
This little green cloud here,
we finally came down and popped up out of that.
That's very important.
If you look at the RSI,
we actually have came over the 50 line on the RSI.
And the 50 line on the RSI is the most important part of the RSI.
As you can see over here,
you could foretell bearish continuation
because it came down and bounced off the 50,
bounced off the 50.
That's how you know it's going to keep going down.
And if it's going to keep going up, it's going to retest the 50
and it's going to stay above it.
And that's, like, what you can use to stay in your trade or decide to get out.
And right here, we finally came above the 50 on the RSI.
We're leaving the reversal zone.
We have the buy signal.
This is starting to sound like confluence.
This is starting to feel like everything's lining up the way it's supposed to.
So if we go back,
the Oscillators Premium has so many different things you can use
that are all really good.
I like to use the RSI, the Advanced and the Stochastic.
If we look at the Stochastic real fast,
you will see that, you know, it was coming down here.
It's red.
And now it's finally turning to green.
That's very bullish.
That's exactly what we want to see for this Ultimate Stochastic.
Also, if we come down to the Advanced here,
see, this is a perfect trade.
Right here, this is called an anchor wave,
the momentum wave,
and this is called a trigger wave.
And since the anchor wave is bigger than the trigger wave,
right here, this is a perfect case of bullish divergence.
So let's recap this one more time why we're getting in this trade.
We're not just getting in this trade because of the green buy signal.
We're getting in this trade because we have bullish divergence.
The stochastics went from red to green.
The candles went from red to green as well.
If it goes red to green, that's good.
If it goes from green to purple, that's bad.
If it goes to purple to red, that's even worse.
The candle coloring tells you the whole story with Lux Algo.
It's very important.
So we have confluence.
We're coming out of the reversal zone.
We have the signal.
We have the RSI above the 50.
We have bullish divergence.
This is the time to get in the trade.
So now we're going to get in this trade.
We're going to pretend that we got in this trade at 18,650.
Right there, that yellow line.
So we watched that perfect.
We're timing it perfect.
Alright. Let's do it together.
Let's press play here on the bar replay and see how this trade plays out.
So you got another candle here.
See, it's still green. We're riding this out.
You see this Trend Catcher here?
That's also very important.
Let me pause this really fast to talk about the Trend Catcher.
You see it right here, the Trend Catcher's red,
and it's staying above the price action.
It comes down here.
But down here, the Trend Catcher turned green.
And that's just another thing, another confluence, another factor
why we're getting in this trade.
So the Trend Catcher is green.
We're going up here.
We're continuing this trade.
Let's press play again on the bar replay.
We got in right here.
We're approaching this reversal zone,
but nothing's too scary yet because we're still in the green.
We are managing this trade perfectly.
We're still in the trade.
Everything's going well.
We're riding it out.
We're being patient.
We're not being impulsive.
We're doing what we're supposed to do.
And we are riding this trade out perfectly.
And until this goes purple, until it gives you a sell signal,
you're still in this trade the whole time.
This is how you manage a trade.
This is how you become a winning trader.
So we're still riding this out.
We're still riding this out.
We're still green.
Boom! We got another big candle here,
another big candle up.
And see that?
There it is.
Boom!
So this little blue X right here,
this is Lux Algo telling you,
"Hey, man! Hey, maybe you should get out of this trade."
Remember why we got in this trade.
We had the confluence.
We left the reversal zone.
We got the buy signal.
We got the RSI.
We got the bullish divergence.
We had confluence.
There's many things telling us, "Hey, green light. You're good to go."
So we got this little sell signal here,
that little blue X.
We said we got in right here at 18,650.
Let's draw it up right here to the top of that.
And that right there is 6.5% gain just like that.
This is how you make money using Lux Algo.
You use the candles.
You use the reversal zones.
You use the Trend Catcher.
You use the Ultimate RSI.
You use the Stochastic.
You can use the MACD.
There's a bunch of different things that you can use.
And as long as they're all telling you the same story,
as long as there's confluence,
you will become a winning trader.
My name is AJ.
You can find me on all socials @ajwritescrypto.
I do daily updates on Twitter.
I post a bunch of fun stuff on my Instagram.
It's a great time.
Feel free to reach out and message me.
I will write back to you.
I will help you along in your journey in crypto.
This whole thing is about educating and informing the BitSquad
to become winning traders,
to improve your win rate,
to make life-changing money.
And I want to help you do that.
If you want to get Lux Algo,
if you click the link in the description to become a winning trader,
to be a member of the BitSquad,
we will hook you up with an exclusive little discount there just from us.
And you have yourself a great rest of your day.
Keep it snazzy.