Everybody hate s false breakouts. But what if I told you there were indicators
out there, to one, not only give you confirmation on your trades, but to also help prevent you
from entering trades like this. That would be pretty cool right?
Well luckily for you, I have been scavenging TradingView the last couple weeks for indicators
for this exact purpose. Tradingview default indicators, community
scripts, custom scripts, private indicators. And ohhhh boy have I found some good ones.
You can add any one of these indicators to your already made strategy to improve it and
hopefully increase the winrate of your very own strategy.
I will be showing you confirmation indicators for lower times frames like the 1 and 5 minute,
and I ll also show you ones that are more for longer time frames like the 1 hour or
daily. All of these indicators im about to show you
are a complete game changer and will forever change the way you trade.
Let s get straight into it. To start our list off strong we are going
to start with the trend meter indicator. Now if you ve watched before, I ve used this
indicator in many of strategies. And there s a reason for that. It s a fcn good indicator.
To add it to your chart, go to Tradingview. Click the indicators tab and type in trend
meter and click this one by this guy. Once you have it added it to your chart, this
little guy will show up. Now this one is extremely easy to use. All
you need is to have all of these dots and lines green. Including this dot up here that
will occasionally show up. Every. Single. One of them. Must be green.
This is important as this will confirm the signal is strong.
Each one of these dots or lines represents a specific indicator. When green, that means
the indicator is giving a bullish signal. When red that means that indicator is giving
a bearish signal. If you go to the settings of the indicator
it will show you all the indicators it uses. I personally keep all these settings at default,
but you can change them if you desire. The one setting I do like to change is go
to the Styles tab and uncheck the signals 1 box.
Now, I already know im going to get this question. What timeframe does this indicator work best
on So I might as well answer it now. This indicator
will work for all time frames. BUT. After using it for many trades myself, I have figured
that it works best on larger timeframes like the 1 hour or daily.
let me show you an example of how we can use this indicator to get more profitable trades
and not get as many false breakouts.
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let me show you an example of how we can use this indicator to get more profitable trades
and not get as many false breakouts. for this example my base trading strategy
will be one that you learn straight out of kindergarden. just a simple moving average
strategy. Where I have a 50 ema and 200ema and I only enter a trade when the 50 ema crosses
above the 200ema. Now the problem is, with this strategy you
are going to have times when the market is consolidating and gives you an entry point,
but it turns out it was a false signal and gave you a losing trade.
We do not like this. How do you fix this?
Add the trend meter. So you will only enter if you base strategy
gives you an entry signal and all the dots and lines are green on the trend meter.
So as an example the ema s crossed giving us an entry signal for our base strategy,
but not all the dots were green on the trend meter. So we wouldn t enter this trade, and
look what happens, it was a false signal. Then this time we see the ema s crossed and
gave us another entry signal, we look at the trend meter and all the dots and lines are
green, so we would enter this trade. This time it works out and the chart goes
up. You can do the same thing with shorts, just
make sure all the dots and lines are red. This will insanely increase the chance of
the chart going in the direction you want it to. You can replace the moving averages
with whatever strategy you personally use.
Now it s time to move on to the next confirmation indicator, and this one is one of my all time
favorites. Go to the indicators tab and type in donchian
trend ribbon. This one right here. Once you have it added to your chart, you
ll get something that looks like this. It s a pretty straight forward indicator,
but it gives so much value. When the bars are green, you should be buying,
when the bars are red you should be selling - But what timeframe does it work on?
You again? Well this indicator actually works on all timeframes a lot better than the last
one, so it can be used to filter out trades on shorter times frames like the 1 minutes
or 5 minute but It can also be used on the , hour, daily, whatever you want.
Of course this indicator will perform better on higher timeframes, so just keep that in
mind. Let me show you an example of how to use this
indicator. So for this example I m using the supertrend
indicator as my base strategy. It just gives you very basic buy and sell signals.
If we look at this bitcoin chart you can see the supertrend indicator gives you a buy signal,
but if we look at the donchian indicator it has red bars, so we would not end up taking
this trade. If we move a little bit forward, the supertrend
indicator gives a sell signal, if we scroll down, the donchian is also red.
So, we would enter a short here. And Look what happens, price falls. So you could of
very easily predicted the fall of bitcoin with this simple strategy.
Here s another example. Supertrend just turned green, so we take a
look at the donchian indicator to confirm this signal.
We see that it is also green, so we enter a trade. Look what happens, a huge uptrend.
With this indicator, I like to keep all the settings at default.
Onto the next one! For this next one, go to the indicators tab
and type in EFMUS System. 3 different indicators will show up, you can choose any one of them
as they are all the same. When you add it your chart it will look like
this. There are going to be many rows of rectangles.
Each rectangle represents a different indicator. With this specific indicator you can add up
to 10. Including but not limited to.
Ema cross, rsi, ema 20, sma50 ema 55, ema 75, sma 100, sma 200, pivot, and macd
You have the option to enable or disable any indicator your so please, just go to the style
tab, and say if you didn t want rsi enabled. Because for some reason you ve had an absolute
hatred for RSI since you were 4 years old. You can simple just uncheck the check box
and it won t show up on the indicator. So just like the other confirmation indicators,
this one is very easy to use. - But what timefr-
All time frames, this indicator works on all time frames. Remember higher timeframes will
work better though. So with this indicator a buy signal would
be every single rectangle is green for a strong bullish uptrend.
So here we have our super trend indicator again for the base strategy. We get a buy
signal but we look at our efmus system and see that not all the rectangles are green,
so we don t enter this trade. And that ended up being a good decision because
the market was consolidating and this ended up being a false signal.
Here s an example where we get a buy signal from the super trend indicator. We the check
efmus system and it has all green rectangles. Confirming that we are good to go.
So we enter. The price heads upwards making this a successful trade.
Now it s time for the fourth and final indicator. This fourth and final indicator works wonders
for long term trades. When I say long term I mean a trade that is on the 1 hour timeframe
or higher. Just like the other indicators the higher the time frame the more accurate
this indicator will be. I also did some testing with shorter term
time frames with this indicator and it doesn t work too well with smaller time frames.
So mainly use this indicator for the larger ones.
Go to the indicators tab and type in HACOLT? Hacolt. Yeah, this one right here.
Same type of strategy applies. You only buy when the indicator is green and you only short
when the indicator is red. As you can see this indicator is pretty accurate
on higher time frames. When the indicator is green, the market is trending up. When
the indicator is red that market is trending downwards.
All of these indicators I shared with you are really great at confirming entries and
exits. But none of them should be used by themselves.
These are confirmation indicators, not entry indicators.
Pair them with whatever strategy you are currently using and it will help you make better confirmed
trading decisions. Test them out with your own strategies and
let our community know which one worked best for you.
You can do that by joining the TradingLab discord where you can talk to other like minded
traders about trading. I ll leave a link to discord in the description.
If you see how to double your account size within 30 days, watch this video because I
backtested strategy a 100 times and the results were pretty good.
Thanks for watching, and I ll see you guys next time.