Indicators

While an expert trader is not dependent on indicators, they are also not exempt from their confluence checklist.

For new traders, it is very common for them to pick up an indicator, and not fully understand what the indicator is telling them.

This tutorial will give you an introduction to how and when certain indicators can be useful. You will also learn why many popular indicators among the masses are not always the most efficient.

Learn the difference between leading and lagging indicators and discover indicators that will complete your trading strategy.

Time Stamps

2:50 – BAT Previous COTW (DO NOT TRADE THIS)

• When Daniel sees a coin with strong momentum to the upside, he will buy with momentum if there are no signs of slowing down (DAYTRADE!)
• With bullish momentum, Daniel used 26 EMA on 5 min and an awesome oscillator

NOTE:

A good way of finding the target for wave 5 is to take an extension from the bottom of wave 1 to the top of wave 1 to the bottom of wave 4. If wave 3 is not extended (1.618), wave 5 can be higher.

21:47 – INDICATORS INTRO

25:36 – LAGGING INDICATORS

• Calculated from the last close (they cannot predict)
• EXAMPLE: you see crossover on MACD or EMA – the move has already happened, you ‘missed’ it. They are used for confirming a trend and its strength.

30:20 – AVERAGE TRUE RANGE

• Daniel uses it for the stock market

34:59 – ADX (AVERAGE DIRECTIONAL INDEX)

• Great for swing trades
• It can determine how strong the trend is and in which direction it is going
• 0-25, not a strong trend, 25-50 average trend, 50-75 very strong trend, 75-100 strongest trend
• Green above red = bullish, red above green = bearish

40:27 – AWESOME INDICATOR

• For all time frames – Daniel likes it
• Measures strength of the move, it is useful with EW

47:59 – OBV (ON BALANCE VOLUME)

• It is used for trend confirmation

58:33 – ZIG ZAG

• Shows you swing high and swing low – very useful for beginners

59:48 – STOCHASTIC RSI

• You are looking for bullish and bearish crosses (good for scalping)

1:02:26 – MFI (MONEY FLOW INDEX)

• Green = MFI and volume up
• Brown = MFI and volume decline
• Blue = MFI increases and volume decreases (fade)
• Pink = MFI diminishing and volume growing (fight between buyers and sellers)

1:08:16 – PP (PIVOT POINTS)

• Double click and change to Fibonacci and untick show historically
• Works on different TF
• Shows S/R

1:11:11 – ALLIGATOR

• You want to see them widen for a strong trend

1:12:41 – VPVR (VOLUME PROFILE)

• Shows horizontally where volume is coming in (covered in details on 8. 4. 20 Contenders live stream)

1:16:29 – BTC TA and Q&A 

Although Daniel is giving us all these indicators today, he’d be so much happier to get us to the place where we trade with zero indicators (like him). You add them at the end when you already have a bias.