hello and welcome to looking at the markets with David Modell we're gonna
hello and welcome to looking at the markets with David Modell we're gonna

talk about the tricks indicator today not one of the better known ones but I
talk about the tricks indicator today not one of the better known ones but I

like it because it is super simple to use
like it because it is super simple to use

now how you calculate it is not simple but you don't need to know all the
now how you calculate it is not simple but you don't need to know all the

calculations I think it's more important to know how to use it
calculations I think it's more important to know how to use it

now before I get started explaining the tricks indicator I just want to let you
now before I get started explaining the tricks indicator I just want to let you

know that I do offer coaching for traders and investors when it comes to
know that I do offer coaching for traders and investors when it comes to

putting together a plan or understanding technical indicators or fundamentals any
putting together a plan or understanding technical indicators or fundamentals any

of that stuff I do offer coaching if you're interested in the coaching you
of that stuff I do offer coaching if you're interested in the coaching you

can email me at David Modell at gmail.com so let's get into the tricks
can email me at David Modell at gmail.com so let's get into the tricks

indicator keep it smooth with the tricks indicator the tricks indicator is a
indicator keep it smooth with the tricks indicator the tricks indicator is a

momentum indicator or trend indicator it is calculated using moving averages the
momentum indicator or trend indicator it is calculated using moving averages the

tricks indicator is triple smooth which means that we're taking a moving average
tricks indicator is triple smooth which means that we're taking a moving average

of a moving average of a moving average now you don't have to understand all the
of a moving average of a moving average now you don't have to understand all the

calculations I'm about to tell you but it's okay to know them if you want to so
calculations I'm about to tell you but it's okay to know them if you want to so

how do they get the tricks number well step one they take the 15 period
how do they get the tricks number well step one they take the 15 period

exponential moving average or EMA using closing prices of the candlesticks and
exponential moving average or EMA using closing prices of the candlesticks and

this is true whether you're using daily candlesticks or one-minute candlesticks
this is true whether you're using daily candlesticks or one-minute candlesticks

or 5-minute whatever it this is this is the calculation regardless of the
or 5-minute whatever it this is this is the calculation regardless of the

timeframe of the candlesticks so step one take the fifteen period
timeframe of the candlesticks so step one take the fifteen period

exponential moving average step two take the fifteen period EMA
exponential moving average step two take the fifteen period EMA

of the result from step one step three take the fifteen period EMA of the
of the result from step one step three take the fifteen period EMA of the

result from step two so you have a moving average of a moving average of a
result from step two so you have a moving average of a moving average of a

moving average and so it's going to be very smooth and very rounded the line is
moving average and so it's going to be very smooth and very rounded the line is

not going to be jagged it's going to be smooth and finally step four you take
not going to be jagged it's going to be smooth and finally step four you take

the one period percent change of step three and step four is the tricks if you
the one period percent change of step three and step four is the tricks if you

didn't understand all that it's okay it's just good to know what the
didn't understand all that it's okay it's just good to know what the

calculations are if you want to but more important is how you
calculations are if you want to but more important is how you

use the tricks indicator so here's how you might use it and please understand
use the tricks indicator so here's how you might use it and please understand

that no indicator works all the time none of these indicators that I talked
that no indicator works all the time none of these indicators that I talked

about work a hundred percent of the time you have to make your own decisions do
about work a hundred percent of the time you have to make your own decisions do

your own research know what you're doing before you do it so here's how you might
your own research know what you're doing before you do it so here's how you might

choose to use it when the trix is above zero the momentum is considered bullish
choose to use it when the trix is above zero the momentum is considered bullish

and when the trix is below zero the momentum is considered bearish so it's
and when the trix is below zero the momentum is considered bearish so it's

just telling you the overall trend or momentum is it training upwards or
just telling you the overall trend or momentum is it training upwards or

downwards that's kind of all it does it's really simple but there are other
downwards that's kind of all it does it's really simple but there are other

ways you can use it you can use the Trix indicator to spot divergences between
ways you can use it you can use the Trix indicator to spot divergences between

the direction of the Trix line and the direction of the candlesticks divert
the direction of the Trix line and the direction of the candlesticks divert

divergence meaning they're going in two different directions and the Trix
divergence meaning they're going in two different directions and the Trix

line might be telling the truth while the direction of the candlesticks might
line might be telling the truth while the direction of the candlesticks might

be lying to you possibly and so it's kind of like RSI divergences or
be lying to you possibly and so it's kind of like RSI divergences or

stochastic Lian divergences it's not really that different so a bullish
stochastic Lian divergences it's not really that different so a bullish

divergence is when the price makes a lower low but the Trix line is still
divergence is when the price makes a lower low but the Trix line is still

trending upwards so if you have the price trending downwards but the Trix
trending upwards so if you have the price trending downwards but the Trix

line trending upwards you might you might feel that the Trix line is telling
line trending upwards you might you might feel that the Trix line is telling

the truth and that it's still bullish and conversely a bearish divergence is
the truth and that it's still bullish and conversely a bearish divergence is

when the price makes a higher high but the Trix line is still trending
when the price makes a higher high but the Trix line is still trending

downwards so it's just the opposite that would be a bearish divergence all right
downwards so it's just the opposite that would be a bearish divergence all right

so let's take a look at trading view and let's see what that looks like and this
so let's take a look at trading view and let's see what that looks like and this

is Apple stock it's a daily candlestick chart but again you could use this on
is Apple stock it's a daily candlestick chart but again you could use this on

pretty much any time frame it still calculates it in the same way all right
pretty much any time frame it still calculates it in the same way all right

and as you can see the Trix line pretty much follows the price action I don't
and as you can see the Trix line pretty much follows the price action I don't

see a lot of divergences in this particular example but if you do see one
see a lot of divergences in this particular example but if you do see one

you can certainly use that and you might be led to believe you might feel that
you can certainly use that and you might be led to believe you might feel that

the Trix line is telling the truth not necessarily again none of these
the Trix line is telling the truth not necessarily again none of these

things work a hundred percent of the time and as you can see here on trading
things work a hundred percent of the time and as you can see here on trading

view zero is the midline and supposedly you know if it breaks above it or stays
view zero is the midline and supposedly you know if it breaks above it or stays

above it that's bullish momentum and if it breaks below it or stays below it
above it that's bullish momentum and if it breaks below it or stays below it

that can be considered bearish momentum and here on trading view at least the
that can be considered bearish momentum and here on trading view at least the

default look-back period is 1818 periods okay
default look-back period is 1818 periods okay

pretty simple indicator a couple of different ways you can use it and that's
pretty simple indicator a couple of different ways you can use it and that's

your basic primer on using the tricks indicator I hope this was helpful to you
your basic primer on using the tricks indicator I hope this was helpful to you

and if you want to show some support please give this a thumbs up right now
and if you want to show some support please give this a thumbs up right now

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whenever I put out new videos and also if you or someone you know would like
whenever I put out new videos and also if you or someone you know would like

coaching for trading or investing you can reach out to me by email at David
coaching for trading or investing you can reach out to me by email at David

Modell at gmail.com I appreciate all of your you know watching my videos you
Modell at gmail.com I appreciate all of your you know watching my videos you

know thanks so much for doing that I really appreciate everybody each and
know thanks so much for doing that I really appreciate everybody each and

every one of you thanks a lot I'll talk to you again soon
every one of you thanks a lot I'll talk to you again soon