well it's official the best scalping
indicator just got better you guys have
probably watched my previous video on
the best scalping indicator and version
two is now out so in this video i'm
gonna do a detailed explanation of
everything involved in this indicator
and how to use it
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we talk about
everything day trading to keep you
profitable on a consistent basis
so because the channel is so massive and
the discord group
is absolutely like growing like crazy
there are so many people on there
willing to help
because they vibe with my mission giving
free information to people who need it
and so through that one of the members
of the community
actually created an indicator using all
of the indicators that i used to use
in my previous videos and put them all
into one bunch
and through that process we realized
that we could improve it just a little
bit giving more of a momentum
indicator feel to this momentum
indicator so i'm gonna try to keep this
video very short
run through the details with you guys as
well as show you what trade i took
last night as a test because i just got
version two
last night let's jump into the charts
okay so we have australian dollar us
dollar on the charts and you guys know
that i like to do my support and
resistance levels
on the one hour time frame you should
always be doing this markup
before you throw on any indicator before
you do any price action analysis
like this is what you should be doing
and these are your targets
so usually i do my one hour markup and
then i take it down to the 15 minute
chart so from here i actually see my
rejections off of support and resistance
levels
i find my big ass candle because you
guys know i like to trade my big ass
candles
they are momentum shifting candles
really really good entry points
so i find those and i take my trade to
the next take profit area
the first version of this indicator was
very very simple
it took engulfing candles three line
strikes
and four moving averages the 21 the 50
the 100 and the 200 period
smoothed moving averages now that
indicator wasn't publicly listed but we
had a link
in each video description but now this
new indicator version two
is publicly listed so what you're gonna
do is click the indicators tab
up at the top and you're just gonna type
in
the artie it's gonna be called the arty
the moving average official
indicator by and literally i cannot
thank this person enough
phoenix binary he is a absolute wizard
when it comes to creating indicators
make sure you set it as your favorites
and make sure if you guys really like
this indicator and you like
all of his hard work and dedication i'm
gonna put a link down below to this but
definitely leave a thumbs up right here
on the indicator it helps him out a lot
okay so once you put up the indicator
you'll see how similar it is to the
other one
except there are a few minor differences
we've gotten rid of the 100 period
moving average you can also put it back
on in the settings if you wish i don't
personally like to trade off the 100
it's kind of like an in-betweener for me
so we have the 21
the 50 and the 200. now you guys know
that with my strategy if we are above
the 200 we are looking for buys
and if we are below the 200 we are
looking for cells
and now the 200 period moving average is
dynamic before it used to just be a
solid red color but now it has a
momentum shifting tone
it kind of looks like those fruit by the
foot candies that are tie-dye colored
one they're really tasty and two this
helps
show you the momentum so if you haven't
seen that previous video the basic
concept is this you want a cross past
the 200 and you want it to come up and
re-test the 21 or the 50
and continue the downtrend or the
uptrend your indications of your entries
are gonna be
these big-ass candles whether it's a
three-line strike candle meaning that
there's three subsequent
bullish and then one engulfing bearish
or
it's just an engulfing meaning it
engulfs the previous candle
so you want that rejection off of that
moving average and then a trend
continuation
your stop-loss is going to be about 2x
the size of that engulfing candle
and then your take profit is 4x that
engulfing candle 2-1 risk to reward
ratio
that was the normal setup and that would
have looked something like this you get
the engulfing candle your stop
loss is 2x that engulfing candle and
your take profit
is 4x haha 4x but with this new momentum
cloud in between the 20 and the 50
moving average
it'll actually show you a hue of red
showing you the strength of the momentum
of that move
letting you hold your trade longer
instead of just a two to one risk to
reward ratio so you could have actually
held your trade
down to here when we started seeing a
loss of momentum
and a color change in the cloud then as
the momentum starts shifting the other
way
the red line turns to an orange and then
a green
showing that bullish momentum is
returning so i got this indicator last
night at i don't know just before i was
going to bed
and so i put it up on the five-minute
chart because five-minute scalping
is very common and i tossed it up on
australian dollar u.s dollar because
it's one of my favorite currency pairs
to trade
at that time i saw this big engulfing
candle like this huge
10-pip candle start forming and i was
like cool
let's see how it works i've already got
my chart marked up
and then i saw this trend line right
here being broken with that
big ass candle at that point i see the
clouds start turning green
so i got in on my entry right here and
when i'm trading reversals
i'm always targeting the next moving
average and so here
i simply targeted the 200 and i know at
that point it's dynamic and it's coming
down towards the price
so i just let it run overnight because i
know asian session doesn't have that big
of a move
and sure enough when i woke up i closed
the trade and this was the profit i know
it's a .01 but i wanted to test it on a
very very small size
trade but still it's like 13 15 pips or
something from my recollection
which is great because you've already
analyzed your chart you've got your
trend line on there you traded your big
ass candle
you see that it's gonna move through the
moving average and you just scalp that
move between the 50 and the 200
13 pips on a huge lot size is some good
money so let's get into the settings
really quick
you have everything perfectly labeled
you can actually
change your moving averages from
smoothed which is what i prefer
to simple exponential weighted
everything you can change the period of
each one of these moving averages if you
so choose
i like to use these now with the big ass
candles
and the three line strike the big-ass
candle is just an engulfing candle
there's an option to make them strict so
with a three-line strike
strict on a three-line strike means that
that last
engulfing candle actually engulfs all
three previous candles
so you will get less signals but they
will be
more substantial same with the big ass
candle strict is
fully engulfing that previous candle
like a nice
engulfing just eating that one i'm gonna
get into the trade management in a
second but i wanna
show you the back testing features so
you're gonna have basically a cloud
around the session that you prefer
whether it's tokyo session london
session or new york session
and you can set certain days of the week
that you trade and only have it
say on tuesday wednesday and thursday
avoiding monday and friday
and also right here down at the bottom
if you do take screenshots of your chart
you can actually show the logo and on
the bottom corner here it's going to
show the moving average with the link to
the youtube channel to show your
support for the channel and when you
share your screenshots okay so one of
the biggest and best
new features of version 2.0 is this
chart
up here on the top right hand corner i
wanted an atr
indicator an average true range built
into this indicator
to show you at that time the average
true range and if you haven't seen my
how to set your stop loss video
i talk about the atr in there you can
watch it right here but essentially you
want to take your atr
and either multiply it by 1.5 or 2
because it shows you the true range at
that time
how big that candle might go up and down
so keeping your stop loss
at 2x the atr is going to be a good way
to set your stop loss
and it also gives you some other
information so if you do
see your big entry candle okay just to
fully clarify this
the stop loss right here is going to be
an atr multiplier so if you
take 2x the atr so on the five minute
chart right here
the atr is 3.3 which is 3.3 pips
so if your stop loss is 2x your atr
at that time it's gonna give you the
number for that to put in as your stop
loss
break even is going to be a multiplier
of the atr so you need to calculate how
much commission
and what your spread is on most if not
all of the currency pairs that you are
trading
you'll have to fine tune this to your
broker specifically and your risk to
reward you can keep it as a one to one
or a
two to one which i prefer for all of my
scalping trades
but keep in mind you can also use this
as a swing trading indicator
and take much longer positions getting a
higher risk to reward like a one to five
so if i set this all up with my stop
loss being two times my atr
my break even being 0.4 of the atr
because my spreads are really really low
on my broker
and a one to four risk reward ratio you
can see now
these positions if i entered either a
long or short position
on this candle this would be my target
for
my current risk to reward this would be
my break even which means the price
would have to get to that point in order
for me to have a zero balance trade
this is your entry and this is your stop
loss so
at a glance you have this information
ready for you
so like most people we do all of our
analysis on
trading view and then we take out mt4 on
our phones
and enter our trades that way here you
have your take profit you have your stop
loss you have everything
set and then you can either click buy or
sell depending on which direction you're
trading this table right here
gives so much value to this indicator
and honestly it makes it a game-changing
indicator all of the information is
there for you guys
you see your entry candle with the big
engulfing the big ass candles
or the three lines strike and if you set
everything up with the spreads from your
broker
and the atr indicator on here it shows
you every single
number you should enter in on your trade
and if you guys are using this
on mobile it can actually make the chart
smaller for you you just click
the phone drop down right here on the
size
and it'll give you one column whether
you're only looking for
long positions or whether you're only
looking for short positions through this
toggle option right here it's super
customizable i mean you can even adjust
where you want it on your screen in the
middle on the top on the bottom
right left anywhere so if you guys are
looking for a great scalping indicator
this is free it's in the public library
i'm gonna have it linked down below
essentially you're trading with the
trend you're trading engulfing candles
off of moving averages going with the
trend now if you're scalping reversals
you want to see a loss of momentum a
color shift
in between these two smooth moving
averages
and you want to target that 200. once
you get these huge momentum shifting
candles and the moving averages start
swooping
you can get in on your position here
take profit right here just like i did
on my practice trade last night
and it works out really really well and
if you guys aren't aware there's also
a tma divergence indicator that's going
to be linked down below it is not in the
public library yet because we're still
finishing
up version two i say we i mean phoenix
and here you get a great rsi with a
floating moving average in between it it
also
shows you bullish and bearish
divergences as well as hidden
divergences
bullish and bearish once version 2 is
done i will be doing a follow-up video
on that
but this alone right here is going to
help you with your entries on your
trades if you get a bullish divergence
and a big ass candle
you're good to go on a scalp and if you
guys want to learn how to spot
divergences
on your own without this indicator check
out this video that i did right here on
divergences
it is very very good and if you guys got
some value out of this video and you
like the way that i teach consider
subscribing to the channel
by clicking this button right here don't
forget to show your support on phoenix's
new indicator by leaving a like
on that as well as a like on this video
thanks so much for watching and we'll
see you in the next one