I tried to use this yesterday for the very first time and i won the trade then this morning i used it again and boom! same result i won the trade again! Thank you for this very valuable knowledge.
Fabulous! That's fantastic to hear! Remember, while it's great to have initial success, always remain disciplined and continue to study and practice. Thank you so much for sharing. Keep up the great work and happy trading!
0:00:00 INTRO 0:00:30 WHAT IS A MOVING AVERAGE (MA)? 0:01:15 DIFFERENT MA CALCULATIONS. WHY & HOW... 0:03:45 HOW TO USE 0:04:55 IDENTIFYING THE TREND 0:08:00 THE THREE C's... CONFIDENCE, CALMNESS, CERTAINTY... (ADD ON TRADES HOFFMAN RETRACE BAR) 0:08:35 USING THESE PRINCIPLES TO TRADE SHORTER TERM 0:09:55 ADVERTISMENT 0:10:35 TRADING RULES OF ENGAGEMENT... SHORT TERM MA's 0:12:20 EXAMPLE 0:16:50 SCALPING THE M3 CHART 0:18:30 APPLY!!! BACKTEST!!!!
There is a contradiction there. One instruction is to check after two closes are made below the moving average, whether ANY of the two closes are below any of the two previous relative lows and another instruction says, to only compare the SECOND close below the SMA to any of the two previous relative lows. Please clarify. Thank you.
I am already in a year of self studying forex trading. This lesson is really a big help. It’s my first time viewing clear explanation on using moving ave. Thanks a lot for the upload. You are a blessing to us who self study. Thank you. Thank you. Thank you.
I'm truly humbled by your kind words! It's rewarding to know that our content is assisting dedicated learners like you. Keep up the self-study, and always feel free to reach out if you have questions. Remember, every great trader was once a beginner. Thank you for being a part of our community!
The use of 30-Simple MA reminds me of similar strategy by Stan Weinstein in his classic book "Secrets for Profiting in Bull or Bear Markets" that uses 30-Weighted MA. What I appreciated most from your video is the "EXIT STRATEGY". Thank you for sharing this simple yet effective strategy!
I'm glad you noticed the similarity! Stan Weinstein's work is indeed a classic in the trading world. It's essential to have both entry and exit strategies in place for consistent trading success. I'm thrilled you found value in our exit strategy. Thanks for watching and sharing your insights!
@@investisseur101 Congratulations on finding a strategy that works consistently for you! It's great to hear about your success with the SMA 30 and MACD combination. Stick with what works for you and keep up the good work! In trading we only need one thing that produces money. You found yours! Congrats!
Hello there. I'm just wondering, why on the video you are using WMA instead of SMA? So basically you are talking about SMA but as an example in the video you are using WMA. e@@TechnicalAnalysisInstitute
On your scalping strategy, You showed closing the trade at the high on the chart at 112.9 instead of using your 2 previous low rule which would have been a significantly lower at around 112.7 which would have cut your gains in half. On the other hand, I have been waiting for someone to post a video showing the use of only one moving average buy and sell indicator using an exit strategy which makes sense. I have been trading single moving average buys and sells for 5 years and doing very well. Very good video and Thank you!
I am a day trader....That was exactly what I was looking for....an Entry, Add, and Exit strategy that makes sense. I have been trading for a few years and have tried a lot of different things to put it all together...wow, this strategy is awesome...new traders don't get intimidated on the Exit rules it's easier than it looks at first. I have been using with marking the high/low of the 1st bar on the 3 min. Can play off of those with the 30sma. All the best traders short term use "price action"...that is what is so sweet about this system...you are too. Thanks again for taking the time to make available.
Thank you for your wonderful and inspiring comment. I do hope this strategy makes you a lot of money. I look forward to hearing from you again sharing your results. Thank you for your kind feedback!
Thanks for this excellent content. In this video only buy setup is explained. Is this strategy applicable only for LONG Trades ? Ideally the opposite conditions are applicable for SHORT Trades. Kinldy conifrm my understanding.
So when the low has gone below the 2 previous relative lows........the you enter a short trade i.e. close the long n go reverse. That will be pretty late into the game. If not then, what are the entry rules for the trade #2 i.e. reverse trade.
As a refinement may I suggest using this technique with a 200 sma added. Then take buy trades only when price is above the 200sma and visa versa for sells.
Certainly! Your suggestion to integrate the 200 SMA as a filter for the overall trend direction is a time-tested approach well known in the industry and use by many traders. By buying only when the price is above the 200 SMA and selling when below, you're essentially aligning with the prevailing trend, which can often increase the probability of successful trades. Thanks for sharing your refinement. Always great to have insightful contributions from our community! Please share your future results. It'll be enlightening to the community.
Thank you for your kind words and your question! To apply a 30-day Simple Moving Average (SMA) indicator, you would set the period or length setting of the SMA to 30. This means the indicator will calculate the average closing price of the last 30 days and plot it on your chart. Here’s a step-by-step guide on how to set this up, typically using a trading platform or charting software: Locate the indicator section on your trading platform. Choose the Simple Moving Average (SMA) from the list of available indicators. When prompted for the settings or to edit the indicator, set the 'Period' (sometimes labeled 'Length') to 30. Apply the indicator, and it will automatically calculate and display the 30-day SMA on your chart. The 30-day SMA will give you a smoothed representation of the price action over the past month, helping to filter out the 'noise' of day-to-day price fluctuations and show you the underlying trend. Remember, the SMA is typically based on the closing prices, but some platforms allow you to base it on the open, high, or low prices as well. Make sure it is set to 'close' if you're following the method I suggested in the video.
Thank you for your quick reply. but sorry I can't find simple moving average on trading view platform I can see their moving average simple but there is length and smoothing length, so I am confused there. If you can, please clarify. Thank you.
@@s.ribadiya Of course! In trading view, under indicators, chose Moving Average Simple. Then adjust the length to 30. That's all you have to do! Hope that helps you.
12:03 The latter is that the close is ABOVE the last lows. So in this case... Former - exit Latter - stay long A diagram at the same time would've helped, though you did it later. But it is a good tip. 👍
Thank you for your feedback. For some traders who are not adept in recognizing the trend, it may be a lot more than a good tip though; it can be a complete trading methodology. Personally, I prefer to recognize the trend first and apply this strategy thereafter.
Fantastic channel and amazing delivery of the concept… I’m glad I stumbled upon your channel. You should have way more visibility. Your videos are treasure! Thanks for passing along this expertise!
Thank you so much for your kind words and encouragement!Your support helps increase our visibility and reach more people. Thanks again for being part of our growing community
Wow, thank you so much for your generous donation! Your support truly means the world to me, and it helps keep the channel going. I'm so glad you're finding value in the content. If there's anything specific you'd like to see more of, please let me know. Your input is invaluable. Thanks again for being such an amazing part of our community!
There is true genius is simplicity and this approach has it. A very nice strategy for getting in, staying in and adding to the trade. Many thanks for sharing.
Thank you so much for your kind words! I wholeheartedly believe in keeping things simple yet effective in trading. I'm thrilled to hear that you found value in this approach. Best wishes in your trading journey!
Boa tarde! Thank you for your question. Yes, in a 15-minute intraday timeframe, going short when the first red candle closes below the 30-period moving average can be a part of your trading strategy. However, the moving average must be pointing down!! Always ensure to combine this with a thorough analysis, other indicators or a confirmation of trend reversal for a stronger signal. Be mindful of risk management and happy trading
You're very welcome! I'm thrilled to hear that the strategy has been so effective for you, transforming your losses into profits. Remember, consistency and continual learning are key in trading. Please make sure to watch the second video we posted on Moving Averages. It may help you further: Here's the link: th-cam.com/video/LM8wYq5noy4/w-d-xo.html Your success and feedback are what motivate us to keep providing valuable content. Happy trading! 📈
Thank you so much for your kind and encouraging words! It's truly gratifying to hear that our channel has stood out to you in your exploration of this field. As a professor, my aim is always to present information in a clear, concise, and methodical manner, and I'm delighted to know that this approach resonates with you. Your feedback is greatly appreciated and motivates us to continue delivering high-quality content. If there are any specific topics or areas you're interested in learning more about, please feel free to let us know. We're here to support your learning journey! Thank you once again for your support and for choosing our channel as a resource.
Wonderful explanation about M0ving Average in the video in a simple & understanding way. 1) Can i use EMA instead of SMA??? 2) Is MA works on any segment/Market like Equities, Commodities, Options in Indian Market??? 3) is Time Frame will be depends on our Trading like Intraday/Swing Trading...etc??? Your response will be Highly appreciated sir. Thank you.
Thank you for your kind words and feedback. Here are the answers to your questions: 1) Yes, you can use a 30-period Exponential Moving Average (EMA) in place of a Simple Moving Average (SMA) for your trading strategy. The choice between an EMA and an SMA depends on your trading style and objectives. The EMA gives more weight to recent prices, which makes it more responsive to new information compared to the SMA. This can be beneficial in a fast-moving market where recent price action is more relevant. However, it can also make the EMA more prone to generating false signals in a volatile market. On the other hand, the SMA assigns equal weight to all values, which can make it more stable and less prone to fluctuations in a volatile market. However, this can also mean it reacts slower to recent price changes. If you switch to a 30 EMA, you might notice quicker responses to price changes, which can be advantageous if you're looking for early signals. However, it's important to be aware of the potential for increased noise and false signals. As with any trading strategy, it's recommended to backtest and practice with a demo account before applying new methods to live trades. 2) Absolutely! 3) Certainly! In the video I gave example with different time frames to show it is possible to use for any type of trading style. However, I never recommend day trading. While the strategy will theoretically work, the psychological aspects involved will likely interfere. Happy trading!
@@TechnicalAnalysisInstitute Thank you for your immediate response sir. It would be have been more helpful for us Instead of "Bars" if you have used "Candles" in the Tradingview platform in the video. But given lot of clarity about MA. Thank you.
@@manjunathakar4943 That is not completely correct! This video should help you understand why sometimes it is better to use bars for specific strategies and why sometimes it is better to use candles. I suggest you watch it attentively. Also, in the next few weeks I'll be posting a full training on one of the most sophisticated tools of technical analysis. For that you need to use Bars, so it will be best you learn the correct use of them. th-cam.com/video/s9tQsF5CqSs/w-d-xo.html&ab_channel=TechnicalAnalysisInstitute
@@TechnicalAnalysisInstitute Understand sir. Because in India most of us are using candles for the analysis. But thank you for sharing knowledge sir. Waiting for more useful Knowledge & Analysis from your side. Thank you so much for your time sir.
@@manjunathakar4943 We do too! But that's only one type of analysis. Very useful, no doubt. But a good analyst should be able to use several types of charts at different situations. For instance, if you want to do Ellliott Wave analysis, you should only use Bars. If you want to add positions to established trends you may want to use P&F charts, and if you only need to know the tendency, you will better off using line charts. Those are just examples, but there are many reasons why we should be able to switch from one to the other. Happy trading!
Please don't worry about any perceived ignorance; asking questions is a great way to learn. Technical analysis is indeed a universal tool; it's applicable not only for 'buy' signals but also for 'sell' signals. Furthermore, it can be effectively used across various types of securities, including stocks, bonds, commodities, and even cryptocurrencies. Thank you for your question!
@TechnicalAnalysisInstitute Thank you for your quick answer. I would like to ask anotheer question about process. After second close, we drove a line horizontally to the left side and choose first lowest low that crossed by horizontal line whereever it. Am I correct?
Thank you for your question and for following the discussion. I must admit, I'm not entirely sure I fully grasp your question. It would be really helpful if you could review the video again for clarification. Additionally, it would be great if you could join the next live stream, as that would give us a better opportunity to interact and address your query more effectively. In the meantime, let me reiterate the instructions from the video for clarity: You should consider buying when there's a first close above the 30 period simple moving average (SMA). However, be cautious if the SMA is steeply pointing downwards, as this might not be an ideal buying signal. The strategy for exiting is to do so after witnessing 2 closes below the 30 period SMA. Specifically, consider exiting when one of these closes is below the lower of the previous two significant relative lows. Again, I recommend reviewing the video for a better understanding and joining the next live stream where we can interact more directly and clear up any confusion.
You're absolutely right; such a comprehensive topic requires a deeper dive than a simple comment can provide. Recognizing market shifts involves understanding various technical signals, patterns, and sometimes combining multiple indicators. I've touched upon this in several of my videos. Stay tuned, as I plan to address such topics in more detail in future videos. For now, I'd recommend revisiting some of my previous content and paying close attention to trend reversals and consolidation patterns. I strongly suggest you go through the Live stream recordings from last week where I gave detailed explanations on identifying trend reversals. You'll find the recordings under www.youtube.com/@TechnicalAnalysisInstitute/streams Thanks for your insightful question!
Hi professor Aldo i been using MA for such a long time but not satisfied with the results now I’ve come across your valuable video about using MA in a correct way so thanks a lot for the informative video and let me tell you sir that the calmness’s of your voice shows the simplicity of the strategy itself using the MA thanks sir i have just one simple question that trade in forex markets and i trade only in 2 pairs GOLD and. US OIL and i am a scalper too i like your 3 min scalping strategy you explained in this video and i trade in 3 min and 5 min so just want to know dose this strategy work in forex markets specially in GOLD / US OIL thanks for your valuable time and plz reply ASAP i am waiting eagerly sir 🙏
Thanks sir for the ❤️ sir but can you plz reply that dose this strategy work in forex GOLD as well as in US OIL pair in 3 min and in 5 min time frames for scalpingggg
I'm glad to hear that you found the video about using the 30-period simple moving average (30SMA) strategy helpful and that the presentation style resonated with you. Regarding your question about applying this strategy to scalping in the forex market, particularly with GOLD and US OIL, I'd like to offer some important considerations: Scalping Odds: It's crucial to understand that the odds for scalpers are generally lower. Research indicates that only a small percentage of scalpers consistently make money, and often the earnings are modest, akin to a minimum wage. Scalping, especially in volatile markets like GOLD and US OIL, involves significant risks. You may want to go more into momentum strategies. Strategy Flexibility: The 30SMA strategy isn't limited to a specific timeframe like 3 or 5 minutes. In the video, I demonstrated its versatility across various timeframes. However, it's imperative to have a strong grasp of market context to tilt the odds in your favor. Each market and timeframe might require adjustments to the strategy for optimal performance. Market Context: Understanding the broader market context is key. This involves being aware of economic events, market sentiment, and other factors that can influence price movements in the forex market. ideally you need to use a dual time frame strategy to confirm the larger trend direction. Further Learning: I recommend watching a couple more of my videos for a deeper understanding of moving averages in trading. th-cam.com/video/rnhPdR0r_PM/w-d-xo.html th-cam.com/video/LM8wYq5noy4/w-d-xo.html The first is a live stream where I delve into various aspects of moving averages: Live Stream on Moving Averages. The second video explores the use of dual averages. These will provide you with additional insights and strategies. Remember, while strategies like the 30SMA can be powerful tools, they are most effective when used with a comprehensive understanding of the market and solid risk management practices. Scalping requires quick decision-making and can be quite challenging, so it's essential to approach it with caution and continuous learning. Feel free to reach out if you have more questions or need further clarification. Happy trading!
It's great to hear that our videos are providing valuable insights for you! Regarding taking profits using the strategy explained, the key is to observe the position of the second candle that closes below the Moving Average (MA) in an uptrend. Your cue to take profit would be if this second closing price falls below the two previous relative low points. This indicates a potential shift in momentum and can be a prudent point to lock in gains before the trend possibly reverses. Keep refining your strategy with practice, and don't hesitate to reach out with more questions as you continue your trading journey. Happy trading!
@TechnicalAnalysisInstitute I highly appreciate your reply and explanation in detail. Your teaching method and knowledge are matchless. Im feeling lucky to be in your followers. Stay blessed Sir.
@@sA-dn3qy Your words mean a lot, and I'm incredibly grateful for your appreciation. It's followers like you that make this journey so rewarding. I'm here to support your trading journey, so don't hesitate to reach out if you have any questions. Stay tuned for more insights, and together, let's continue this path to trading success. Stay blessed too!
There is a contradiction there. One instruction is to check after two closes are made below the moving average, whether ANY of the two closes are below any of the two previous relative lows and another instruction says, to only compare the SECOND close below the SMA to any of the two previous relative lows. Please clarify.
Good content, but I hv. One query... Video time 15.28 hourly chart The reference u hv given sir,..Before that also some 10 15 candles price crossed and closed ab 30 sma...And it came down and hit SL... Would like to hear yr advice on that. And sir, one request plz make one video using Nifty 50 index chart with yr strategy. Regards
Hello and thank you for your insightful comment. You've pointed out a very valid observation. Remember, while the strategy I shared is robust and can provide a significant edge, no strategy is 100% foolproof. There will be instances, like the one you've highlighted, where the trade may not go in our favor and that's a part of trading; that's why we use protective stops. The key is to maintain a consistent approach and risk management. It's essential to understand that while this strategy can greatly increase your chances of success, it's not immune to losses. In trading, it's not about winning every single trade, but about having a profitable overall strategy in the long run. I appreciate your feedback and will definitely consider creating a video focused on the Nifty 50 index. But one point of clarification is that while I'd love to take credit for it, this is NOT my strategy; it's a proven strategy used by many professional technicians and traders. Stay tuned and happy trading!
I am not sure which demo specifically you're referring to since there are several examples, but the bottom line is that the 30 period is very useful in our experience.
kindly tell can we reverse position in this strategy if yes then how and when to reverse positions according to this strategy, i am not able to find anyway in this scenario
No, this strategy isn't designed to keep you perpetually in the market or to frequently reverse positions. If you've taken a long position, it's based on your analysis and judgment that the trend is upward. Our taught exit strategy aims to shield you from premature exits. To change your perspective on the trend direction would require further analysis and compelling evidence. So, while you can theoretically reverse a position, this strategy doesn't inherently provide a mechanism for such reversals based on its core principles. Always ensure your decisions align with the foundational logic of the strategy you're employing. I hope this helps you...
Let's say we are scalping on 1 min or 2 min chart , if we go long and things don't go our way , at which point can we decide to go to the opposite direction ( in this cas short ), when the second relative low is broken for example ? Basically when we are in a range market whatever the time frame how do we manage to not get stopped out too many times
That's a very important question. The key is to understand that absolutely all trading strategies should begin with one step: Trend Identification. In other videos we covered that issue explaining different ways to do that using a larger time frame without being an expert technician. So the short answer is, always trade in the direction of the trend and ignore the opposite signals.
@@TechnicalAnalysisInstitute ok what you called the reference frame ( identify the direction of your next trade properly ) , 5 times greater tht the trigger chart if I understood properly
Thank you for sharing your valuable knowledge and explaining so well! I have used a similar strategy with 8 and 21EMA, combined with Price and Volume analysis. Very similar but I love the simplicity of the 30 WMA and have added it to my charts. Much appreciated and you have a new subscriber here.
Absolutely delighted to hear that you've found value in our content! It's always great to know that fellow traders can adapt and integrate new techniques into their existing strategies. Welcome to our community, and I'm looking forward to sharing more insights with you. Happy trading!
Yes indeed! Also try to have an average of 200 bars on your chart. That way you won't spread it too much and the slope of the average will be preserved.
Thank you for your insightful question! As highlighted in the video, when considering positions relative to the 30-period SMA, it's crucial to note the direction of the moving average itself. For a stronger indication of a trend, the 30-period SMA should be clearly pointing upwards for long positions or downwards for short positions. In cases where the price is frequently crossing above and below the SMA, and the SMA is flat, it often indicates a sideways or range-bound market. The choice of a 30-period SMA strikes a balance between short-term and medium-term trends, offering a broader view of market momentum. In such flat or sideways markets, relying solely on SMA can be misleading. Hence, combining this with other technical indicators and analysis methods is crucial for better accuracy in identifying the market trend and making informed trading decisions. That's the reason why all student of the Technical Analysis Institute must go through a deep training on Elliott Waves. It's relatively easy to know when and in what direction to trend using Wave Analysis. In those situations we use the 30 strategy to time our entries.
Hello sir thanks for the simple strategy one point on your charts you are using WMA and you are asking to use SMA co which one is the right combination either SMA or WMA. Thanks in advance for this wonderful work and video.
Thank you for your kind words... To clarify, the strategy I intended to discuss uses either the Simple Moving Average (SMA) or the Weighted Moving Average. SMA is a widely used indicator that provides a clear view of the trend by averaging the price data over a specific period. It's straightforward and effective for many trading strategies. However, the WMA can also be a valuable tool as it assigns more weight to recent data, making it more sensitive to price changes. Depending on your trading style and goals, you might find one more suitable than the other. I strongly suggest you test both before committing any real funds to the strategy. Good Luck!
You're very welcome! Thank YOU for your question and feedback. The strategy works exactly the same when selling. Simply inverse the instructions. Happy trading!!!
If you buy the first close above the SMA, does that mean you wait untill the next days opening to actually place the buy? I noticed that sometimes the second day jumps quite abit above that buy signal. Is there away to deal with this?
Of course! There are always a variety of ways to deal with the type of situation you describe. A simple solution is to enter at the 38 to50% retracement of that bar. Not all signals should be seen as black and white. Some can be seen as green lights to move in that direction. The how is as diverse as there are traders.
Hello! Great observation. Both the 30 SMA (Simple Moving Average) and the 30 WMA (Weighted Moving Average) have their own merits. The choice between SMA and WMA often comes down to personal preference and the specific characteristics of the market you're trading. The WMA gives more weight to the recent prices, making it more sensitive to recent price action. On the other hand, the SMA gives equal weight to all data points, offering a smoother overview of the market trend over the period. For the strategies I demonstrated, you can experiment with both to see which aligns better with your trading style and the particular asset you're trading. It's always a good idea to backtest any strategy with both types of moving averages to determine which one offers better signals for your specific scenario. Remember, there's no one-size-fits-all answer in trading. It's all about finding what works best for you. Happy trading!
Hello sir....just happened to see your video & realised how lucky to get to see such simple but valuable content from you. My sincere thanks to you ! I will surely apply this knowledge in my future trading journey.
So nice of you to say. I'm extremely pleased to know our content has been helpful to you. I hope your trading moves at least to the next level and you're able to generate plenty of profits. Many thanks!
Absolutely! All you need to do is to invert the concept! You'd typically look for the price to close below the pointing down moving average as a potential signal to consider a short position. Always make sure to use proper risk management and test the strategy in your simulator! Happy Trading!
Thank you for your comment! The single moving average strategy can be applied to different markets, including options for intraday trading. However, it's essential to backtest any strategy on the specific market and timeframe you intend to use it on. Options have unique characteristics and factors like time decay that need to be considered. Always test and practice in a demo environment before applying any strategy in a live trading scenario. Happy trading! 👍
That's such a great question! Thank you! The answer is theoretically yes, but actually, no. The reason is because if you follow the instructions and are sure to see the MA pointing in your direction, the trend should be in that direction until the MA points in the opposite direction. I hope that makes sense to you. Otherwise, please come to the live stream on Wednesday and I'll try to explain it better then. Thank you for your wonderful question.
For your request to make the bars in candles for easy identification, I would actually recommend using bars in this particular case. Bars can be more effective for easy identification in certain strategies. However, to understand the differences, advantages, and disadvantages of using candles and bars, I highly recommend watching this video from the Technical Analysis Institute: th-cam.com/video/s9tQsF5CqSs/w-d-xo.html&ab_channel=TechnicalAnalysisInstitute It provides a detailed explanation that will help you decide which is best suited for your needs.
Yes, the strategy can be applied to forex, commodities, and crypto markets. It works for both buying and selling positions. Just invert the instructions. You may need to watch the video again to understand how to close the trade. Thanks for your question!
Its a very interesting video sir, really appreciate it...however if u have the time, care to share more on how to exit the trade? Coz im trying to figure it out but still confusing, from profitable to unprofitable just to follow the relative low 😁. Thanks
Practically all strategies of technical analysis work both ways. With the exception of one long term indicator based on the time it takes the market to recover from heavy losses, all strategies apply to up and down trends.
@TechnicalAnalysisInstitute This is what I thought, thank you very much for your reply. I also have a question regarding your exit strategy. We know that we have to look to the left for two significant lows, but what if candles are still building, and another, and another, do we keep looking to the left searching for another significant lows? By doing it it will never end. So when to finally exit the position? Best regards
Hi there! I'm glad you found the video useful. Yes, the principles of moving averages can be applied across various assets, including cryptocurrencies. However, it's important to remember that each asset class may have its own volatility and unique characteristics. Always backtest and adjust the settings accordingly for the specific asset you're trading. Happy trading! 👍
Thank you for this wonderful strategy Prof. But what should I do when the price closes below or above 30 SMA but an SMA is still pointing downwards or upwards?
That's really a good question! Thank you for asking. In a downtrend when the price closes above the 30 SMA and the SMA is still pointing downwards, it could indicate a continuing downtrend. So you may want to stay in the trade until the SMA starts to flatten out. Conversely, if the price closes below the 30 SMA while the SMA is still pointing upwards, it often signifies a shallow correction. If the correction develops into a much deeper one, the MA will flatten. Always remember to use market context. Hence all the other forms of analysis we teach on the channel. Happy trading!
@@TechnicalAnalysisInstitute so when the price is in range, better we stay out of the market because at that time, SMA will flatten. That's to stay out until it starts trending upwards or downwards and to find signal when price closes below or above SMA while an SMA is pointing up (for buy) or down (for sell). OR to add positions as you instructed when price fails to reach second relative low or high and closes again below or above SMA?
Hello! I appreciate your interest and feedback. Taking short or "sell" trades using the strategy would essentially be the inverse of the buy setup. I understand there are more questions and complexities to address. I'll definitely consider creating a follow-up video to dive deeper into the sell-side and answer additional queries. Additionally, we might also cover this in one of our upcoming live streams, so be sure to stay tuned. Thanks for your support!
Yes, indeed! To my knowledge there's only one indicator that works in one direction, that's the original Coppock. Other than that all examples of any strategy we teach works in both directions indistinctly. Happy trading!
Very good content sir. I have used the same approach for years however I use the 34 weighted instead. The two candle comparative analysis to the left was an interesting concept I will back test. I use more advance method to stay in trades but this is a great addition. Thank you for your time to put this together.
Thank you so much for your feedback! It's great to hear from someone who has been using a similar approach. The 34 weighted moving average is certainly another effective tool, and I'm glad to see that experienced traders like you are open to exploring new methods and concepts. The two-candle comparative analysis is something that has worked well for many, and I'm keen to hear how your backtesting goes. Always exciting to add another tool or perspective to our trading arsenal! I appreciate your acknowledgment of the effort put into creating this content. It's always fulfilling to know that it adds value to the community. Please keep sharing your insights and experiences; it enriches the learning for everyone. Warm regards, Aldo
You're welcome! What an amazing question. I thank you for bringing it up. While the video suggests that taking long trades when the price is above the 200 SMA can offer a better confirmation of an upward trend, it doesn't strictly mean that you can't take long trades before that. But it is clear that any buy signal will work better after the uptrend is confirmed. The 200 SMA is a general guideline indicating the primary trend. Prices being above the 200 MA is often considered a sign of an uptrend. However, with the 30 SMA strategy, and since it can be applied to any time frame, it's possible to take long trades even before the price reaches above the 200 SMA. Now let me be clear about it: any buy signal will have better odds when prices are above the 200 Moving average and every sell signal will have better odds when prices are below the 200 MA: Just applying that to any strategy, it will increase its winning ratio. Thank you so very much for question and happy trading!
Thank you for this wonderful strategy. I guess keeping it simple is always great. I would love you to make a video on how to do manual backtest of this strategy on MT5. Nice work as always.❤
I'm glad to hear that you appreciated the strategy and found value in keeping things simple. Your suggestion for a video tutorial on how to manually backtest this strategy on MT5 is a great idea. I'll definitely consider creating content around that topic to provide more in-depth guidance. Thank you for your continuous support and for the kind words! Stay tuned for more updates. ❤️
Hello sir. Simple yet amazing. But may I request you to create the same strategy using the traditional Japanese candlesticks rather than the bars? That would be even more helpful io understand the concept of the relative lows. Thanks a ton sir.
Thank you for your kind words and feedback! I'm glad you found the strategy useful. I understand that many traders prefer the visual representation of Japanese candlesticks over traditional bar charts. They can indeed offer a clearer picture of the market's sentiment in certain contexts. I'll certainly consider creating a version using Japanese candlesticks to further elucidate the concept of relative lows. Your feedback helps in refining our content, and I genuinely appreciate it. In the meantime, you can apply the same principles discussed in the video to candlestick charts. Just focus on the wicks (shadows) of the candles for highs and lows, and the concept remains largely unchanged. Thanks again for your suggestion, and happy trading!
The 30 WMA you saw in the video refers to the 30-period Weighted Moving Average, which is different from both simple and exponential moving averages. A WMA assigns more weight to recent prices, aiming to provide a quicker reflection of price movements. In the context of the strategy discussed, using a WMA instead of a simple or exponential moving average shouldn't significantly alter the overall effectiveness. Hope this helps clarify!
Absolutely! I believe in the video I give examples using short term charts like 3 minutes. However, it works best in larger time frames - you get less frequent false signals. using it in short term charts require the psychological prowess and control of a Zen Master.
I've been trading for a few years using something similar, but have had issues with stop-outs when the market ranges and whip-saws. What you are explaining here seems to overcome that to a large degree. I love the simplicity! I'll be backtesting and see how it goes. I'm assuming the stop goes below the lowest low of trend movement.
Absolutely! First off, I'm thrilled to hear you appreciate the simplicity of this strategy. Addressing your point, you've nailed it: In this strategy, the stop is indeed set below the lowest low of the two relative lows. This method helps to buffer against the noise of the market, especially during periods of consolidation or when the market exhibits whipsaw behaviors. By setting the stop based on the relative lows, we're allowing the trend to breathe and potentially ride out those temporary market retractions without getting prematurely stopped out. However, it's crucial to continually trail the stop based on subsequent relative lows as the trend progresses. This not only locks in profits but also ensures you're dynamically adapting to the market's evolving structure. I encourage you to backtest this method thoroughly. Incorporating this approach to stops might reduce premature exits and provide more room for the trend to unfold. Remember, no strategy is foolproof, but the aim is to provide a solid edge over a series of trades. Good luck, and I'm eager to hear how your backtesting goes!
Thank you for your comment! Regarding the exit point, I've actually covered it in the video. It's identified as the point where prices close below the MA and the second close is lower than the 2 relative lows. I recommend watching that section again for clarity. And thanks for the suggestion on the next video topic, it's always great to hear what viewers are interested in!
Hi. Can you help me understand how to find the relative lows? I am very new to trading and I just started to learn it for about two weeks. It seems like a very basic thing for all the rest, but I hope still you can help me fully understand it.
If you have just started learning, this strategy would not be appropriate for you for involved recognizing the phases of the trend. Skipping that step will result in many losses. I would strongly suggest you start with the strategy I taught in this video: th-cam.com/video/R_RenLM6rDQ/w-d-xo.html You'll have less to think about and you can have a good degree of success with it without being an expert in technical analysis. I hope that helps you! Please don't hesitate to ask if you have any questions. Thank you for your feedback!
very good strategy i am impressed by your teaching method. what i understanding from this lesson first check the trend of the market price and then take the position and check for 2 close position and if those 2 close position above the relative low then don't need to exit just continue your trade. Sir can you make the same strategy video for sell position also. we will be waiting for sell position for sma30 strategy.
Thank you for your kind words and for engaging with the content! I'm thrilled to hear that you find the strategy and teaching method effective. You've got the essence of the strategy quite right. Your request for a video focusing on the sell position using the same SMA30 strategy is an excellent idea. It's important to have a symmetrical approach to both buying and selling in trading, as markets move in both directions. Creating a companion video that explores the strategy from a sell position perspective is definitely on my radar now, thanks to your suggestion. Stay tuned to the channel, as I'll be working on this new video to cover the sell side of the SMA30 strategy, ensuring you have a comprehensive toolkit for both bullish and bearish markets. Your patience and anticipation for this content are greatly appreciated, and I'm excited to share it with you and all our viewers soon. Keep watching, learning, and trading smart! Thank you for the suggestion!
Do we think that these rules apply equally to shorting a falling moving average? Can we use the same entry and exit roles when shorting or does a falling market tend to behave differently?
Markets often fall faster than they rise due to the fear factor; sell-offs can be more abrupt and volatile. This means that generally speaking shorting strategies might require quicker responses and more rigorous risk management. However, the basic principles outlined in the video for entry and exit signals can remain the same using this strategy. Thank you for your great question!
Thank you for your kind words! Currently, we don't have a dedicated video on Range Bars. However, it's a great topic and I appreciate the suggestion. We'll consider creating content on it in the future. Stay tuned and make sure to subscribe to get notified of our latest content!
That's wonderful, but you should always test it in demo first so you can determine the best time frame, best period, best time and conditions and even best asset to apply it to. Good luck!
When identifying a relative low or a second relative low, there isn't a fixed number of candles you have to look back. Instead, you're observing the price behavior in the context of the recent trend.
Sir, I am unable to understand the concept of relative low .can you help with some examples of candles where position had to be exited as the price went down two relative low.Also would like to know the tgts in this strategy.
"Absolutely! The concept of a 'relative low' can be visualized like a hand pointing downwards. Picture three consecutive bars: the middle one (similar to the middle finger) is the lowest, while the ones immediately before and after it (like the index and ring fingers) are higher. This forms a 'relative low' pattern. Regarding targets: they vary depending on various factors. The one I explained on the video is when the second close below the MA is lower than the 2 previous relative lows. Hope this helps clarify things! Remember, practice on a demo account to get the hang of it. Happy trading! ✌️
A relative low refers to a specific point on a chart where the price of an asset dips but is surrounded by two bars (or candles) on its left and right that are higher. In simpler terms, it's the lowest point in a specific range where the bars adjacent to it are both higher. It helps in identifying potential turning points in a market. I actually covered this concept in detail in the video. Think of it like a hand pointing down where your middle finger is the lowest low and your index and ring fingers are higher than the middle finger. I'd recommend revisiting that portion of the video to get a clearer understanding.
this stretegy help me very much. as i lost too much in previous year and i quit trading but now i getting profit after applying it on daily chart only. one thing i need can you please share a indicator that popup when price cross the moving average. there are available but all are paid can you give us for free. thanks again
I'm delighted to hear that the strategy has been beneficial for you, especially after facing challenges in the past. Regarding your request for an indicator, over the years, we've developed various proprietary indicators, and while most of them were licensed for a fee, currently we offer only the TOP Indicator exclusively to our members on TradingView. I understand the desire for a free tool, but our commitment to quality and the value these tools bring often come with a cost. I would recommend considering one of our membership levels to gain access to the TOP Indicator. In the meantime, you might explore TradingView's public library as there are many free scripts and tools developed by the community which could assist you. Thanks for your understanding and continued success in your trading journey!
@@renaldshirima8989 From your question it is obvious to me that you're not referring to the particular strategy taught on this video since there are no targets involved. Perhaps you're looking for answers to a more general question as an intraday trader. So I would address you to explore the many systems to take profits that intraday traders use. Look into historical levels of support and resistance, Fibonacci extensions and retracements, Average True Range, etc...
Thanks for your comment! While candlestick charts are popular, bar charts also offer significant advantages and can simplify your analysis. I strongly suggest learning different chart types because they all have benefits that can be used with particular strategies.
I looked at the strategy you mentioned using random shares, all of which had the opposite effect - when I found two lows than the closing price of the second candle below the SMA30 (CLOSE), the price began to drop sharply and over time. When I found two lows that were higher than the second candle's low that closed below SMA30 (CLOSE), the price went up. I checked on the hours/daily/weekly/monthly graph and all of them had the same results. What did I do wrong?
Thank you for reaching out and sharing your experience with the strategy. It seems like there might be a bit of a mix-up in the interpretation. Let me clarify to ensure we're on the same page. The strategy revolves around using the 30-period Simple Moving Average (SMA) as a trend indicator and a signal for entry and exit points. When the price closes above the SMA that is pointing upwards, it's considered a buy signal. The unique aspect of this approach is the exit strategy. For the exit, you don't just wait for a close below the SMA; you look for a close that is also below the two previous relative lows on the chart. This is a stricter condition because it combines the SMA signal with price action, enhancing the exit signal's robustness. If you're observing that after a second close below the SMA (where the close is below the two previous relative lows), the price drops sharply, that's consistent with what the strategy anticipates as a sell signal or an exit point for long positions. On the other hand, if the second close below the SMA does not break below the two previous relative lows, the price then moving upwards suggests the downtrend isn't confirmed, and exiting might be premature if you're looking at long positions. It's essential to remember that no strategy works 100% of the time, and market conditions can greatly influence outcomes. Also, consider the overall market trend and other technical indicators that could give more context to the SMA signals. If you’re consistently observing the opposite effect, it might be worth examining the specific conditions or markets where this occurs and adjust the strategy accordingly. I hope this helps clarify the strategy. Keep experimenting, and don't hesitate to ask if you have more questions!
very good content, quick question for the sell order rule, it will be the opposite of the buy order rule, just to make sure cause in the video you never mentioned that.
Thank you for your feedback! I would never trade on a 3 min chart. Gambling money would probably be more fun and have better results. The strategy works in all financial assets. The only difference is that in Crypto you may want to test non traditional periods to adjust better for the volatility and extended trading hours.
@@TechnicalAnalysisInstitute Thanks for the quick reply. Appreciate it. One more questions: What do you recommend for a a stop loss in this strategy? I hope in the coming new year to take your mastery courses!
This strategy does not have a stop loss, it has an exit strategy. The exit may be below your entry point if you went long, so that would be your stop loss. Glad you're considering the Technical Analysis Institute.
Thanks for sharing! I am also in the learning phase of the NFC community. Every day is a new opportunity to learn more about trading and experience this exciting journey.
Absolutely! The journey of learning, especially in the trading world, is ongoing and filled with new discoveries. It's wonderful to have fellow learners like you in the community, sharing experiences and growing together. Let's keep the momentum going and make the most of every opportunity. Here's to many more enlightening days ahead! 📈🌟
Greetings from India.I am excited after watching this video. After watching ichimoku strategy , I thought I got what I was after. So now I face another problem i.e. which one to go with ☺(you were kind enough to reply to my comment in the ichimoku startegy video). One question: 'Two closes' means two 'consecutive closes', right?
No, the closes don't have to be consecutive. And there is no reason to chose either or. Both strategies can be applied at different times or you may even combine them and define your own strategy based on those two. You can enter the market with one and add with the other. There are multiple things you can do when you have a solid foundation on technical analysis. So please keep learning, test and above all, be sure to secure a profit factor larger than 2 once your strategy is in place. Thank you for your feedback and question.
@@TechnicalAnalysisInstitute Thank you for your guidance.I will keep in mind and will follow them in my trading and would share the experiences as and when they are relevant.
Thank you for sharing. It sounds good but doesn't work or i could not understand 😪 My question is well, lets say prices are closing below the MA. And if not the second close, but the third or fourth close occurs below the relative two lower lows on the left, shouldn't it be necessary to exit?
You're welcome! Of course! The two closes are the minimum not the maximum. After the second close below the average, every close us be checked against the lower lows of the left. I hope that makes sense...
You're very welcome! I'm delighted to know that you found the lesson informative. It's great to hear that you're ready to put what you've learned into practice. Remember, the real learning begins when you apply the concepts to live markets. Take your time, be patient with yourself, and don't hesitate to review the material as needed. If you have any questions or if there's anything you're unsure about as you try out the strategy, please feel free to reach out. Good luck, and may your trading journey be as rewarding as it is educational. Thank you!
for me i use 50 and 100 SMA for my "trading window" and only trade stocks that are in uptrends, and i use 10 and 20 EMA to decide whether to buy or sell, usually i always sell if price overextend from 10EMA or fall below 20EMA
Wonderful!!! That's a solid approach! Using the 50 and 100 SMA to define the overall trend and then utilizing the 10 and 20 EMA for timing entries and exit points can indeed be effective. Thanks for sharing your method with our community, and I hope you continue to find success with it. Happy trading!
@@Jeff-ox4og yes it has, of course i have my own down days and those days give me hard lesson about risk control, my strategy are inspired by oliver kell and my risk control method i learn from mark minervini, both are champions of the US Investing Championship. to be honest i am still a newbie with just a one and half year of experience, i always do my own research and i fell in love finding new trading ideas and concept.
@@Jeff-ox4og I appreciate your question to @alessavictoria and I would like to pitch in if I may... It’s important to remember that the outcomes of a strategy are highly individualized and not necessarily repeatable across different traders. It's crucial to understand that the effectiveness of any trading strategy hinges on a myriad of factors. These include the context in which it's applied, thorough prior analysis, the amount of capital involved, the sizing of positions, the trader's ability to mitigate risks, and their personal risk tolerance. Additionally, factors such as trade management, the individual's psychology, and their unique approach to the markets play a significant role. I even posted a video on how trading sizing can help eliminate the risk of a position entirely and as a result increase the profitability of any strategy. You can watch it here: th-cam.com/video/T5dKTYkLDUM/w-d-xo.html After you see that video you'll realize that the positive outcome of a strategy is not the strategy in itself. I encourage you to consider these aspects when evaluating or applying any trading strategy, and always approach trading with a mindset that embraces learning and adaptation to your unique circumstances. Thank you for allowing me to be part of the conversation. Happy trading! 😊
Thank you for your question! As mentioned in the video, the stop is typically placed below the lowest of the two previous relative lows. It's a key point in the strategy, so I'd recommend re-watching that segment for a clearer understanding. Always ensure you're comfortable with the level of risk before placing a trade. Hope that helps!
First of all, thank you and subscribe to your channel! What I noticed is that in the smaller time frame examples you talk about the 30 SMA, but you have a 30 WMA on the chart?
Not much of a difference! The essence of the strategy and what makes it different, practical and efficient is that it has very clear and systematic decision making. Having said that, it makes more sense to use a Weighted moving average in smaller time frames, but keep in mind that the smaller the time frame, the more false signals you'll get. Good Luck!
@@TechnicalAnalysisInstitute Thanks for the quick response! I understand :-) I will test and report back! Under 1 hour timeframe the WMA, or at what timeframe would you set the limit for the SMA?
@@ervonHier Not at all! You can use it in any time frame, but if I were you, I would set a limit to how small a timeframe I want to trade. Consider the fact that virtually no day trader earns money according to research.
Well I'm trading the strategy and I'm liking it the challenge you face on lower timeframe is falseouts and lot of invalid closes l bet using it on a bit higher tmfr is better as compared to 2 min and 3 min chat
Thank you for your feedback! Practically all strategies work better in higher time frames... Trading of 2 and 3 min charts require extreme mastery, but the principle is the same...
@@godfreyrinoona1361 Not at all! The placing of the stop there is because typically, if prices print beyond those levels, there's likely a change in trend.
Of course! In this strategy, an initial protective stop isn't typically used due to the very specific exit guidelines. If a position begins to move against you right away, it's crucial to refer to the exit instruction: 2 closes, look to the left on your chart and identify the two previous relative lows. This will give you a clear indication of where to consider an exit. Remember, the strategy emphasizes a disciplined approach, so it's vital to adhere to the exit criteria when they're triggered. Hope this helps and happy trading!
Thanks for your reply. I guess a SL a bit below the lower of the 2 lows or above thetow highs would work. I trade the daily and don't like to leave positions overnight without a SL@@TechnicalAnalysisInstitute
If you are using a daily chart, yet. But it refers to the closing price of each period, so if you're using an hourly chart, it means at the end of the hour.
Of course! Welcome to the channel, and I'm glad to hear you're enjoying the content. The strategy we discussed is primarily based on price action, which is a fundamental concept applicable across various financial markets, including stocks. While it was demonstrated in a specific context using Forex pairs, the core principles can indeed be applied to stocks, Futures or Cryptos. As always, I recommend backtesting any strategy on the specific assets you're interested in trading to ensure its effectiveness. Stay tuned for more insights and happy trading! P.S. If you're interested in even deeper levels of analysis, I recommend you watch our full week intensive on the Elliott Wave Principle. You should be able to watch it under the Playlist tab. Enjoy!
Hi, Prof. Aldo. Thankyou very much for the video. I wonder if you could clarify the sell part please. In the second example which starts at the 15 minute 16 second mark of the video on the 1h chart, the first close below the MA occurs on a very long bar where the close is approximately 110.50. I will call this bar position zero. The bar to the right which I'll call position 1 also closes below the MA. I will call the bar immediately to the left of position zero, position minus 1. So, we have two bars where the close is below the MA and we look to the left to find two relative lows. In the video at 16:05 you point to the bars which are in position minus 11 (which is below the MA) and position minus 20 (which is above the MA) however I can see two other relative lows which occur at position minus 3 and position minus 6 which are both above the MA and above the closes of positions zero and one. Can you please help me understand why you passed over the two at positions minus 3 and minus 6? Were they not significant enough? Cheers
Great observation. I believe you're right. I understood your explanation. What we could do in that situation is exit the trade and wait for a reentry. According to the example in the video we'd already be in a potential profit anyway. Does that make sense?
Hi sir, When candle close above the moving average we are taking buy position right ? Can you kindly explain if you don't mind the other part? I mean the exit part? Because I didn't get that properly.
Absolutely, you've got the entry point right. When the candle closes above the moving average, it's typically seen as a bullish signal, and we consider taking a buy position. As for the exit strategy, there are several possibilities. The one I discussed in the video was the opposite signal: exit the trade if the candle closes below the moving average after entering a long position. This might suggest that the trend is weakening or reversing. There are other possibilities like trailing the stop, or deciding on specific target based on risk/reward ratio.
Yes, I typically displace the WMA (30) by 2 for my own comfort and visual clarity. However, it's not mandatory to displace it. You can use it without displacement and it should work just as effectively. It's really up to your personal preference!
Ⓜ Your challenge to go from novice to pro: technicalanalysisinstitute.com/mastery
I tried to use this yesterday for the very first time and i won the trade then this morning i used it again and boom! same result i won the trade again! Thank you for this very valuable knowledge.
Fabulous! That's fantastic to hear! Remember, while it's great to have initial success, always remain disciplined and continue to study and practice. Thank you so much for sharing. Keep up the great work and happy trading!
Can you please share your experience now that is 9 months later?
0:00:00 INTRO
0:00:30 WHAT IS A MOVING AVERAGE (MA)?
0:01:15 DIFFERENT MA CALCULATIONS. WHY & HOW...
0:03:45 HOW TO USE
0:04:55 IDENTIFYING THE TREND
0:08:00 THE THREE C's... CONFIDENCE, CALMNESS, CERTAINTY... (ADD ON TRADES HOFFMAN RETRACE BAR)
0:08:35 USING THESE PRINCIPLES TO TRADE SHORTER TERM
0:09:55 ADVERTISMENT
0:10:35 TRADING RULES OF ENGAGEMENT... SHORT TERM MA's
0:12:20 EXAMPLE
0:16:50 SCALPING THE M3 CHART
0:18:30 APPLY!!! BACKTEST!!!!
There is a contradiction there. One instruction is to check after two closes are made below the moving average, whether ANY of the two closes are below any of the two previous relative lows and another instruction says, to only compare the SECOND close below the SMA to any of the two previous relative lows. Please clarify. Thank you.
I am already in a year of self studying forex trading. This lesson is really a big help. It’s my first time viewing clear explanation on using moving ave. Thanks a lot for the upload. You are a blessing to us who self study. Thank you. Thank you. Thank you.
I'm truly humbled by your kind words! It's rewarding to know that our content is assisting dedicated learners like you. Keep up the self-study, and always feel free to reach out if you have questions. Remember, every great trader was once a beginner. Thank you for being a part of our community!
Trade the /NQ, the Nasdaq 2 hours after the market open.
The use of 30-Simple MA reminds me of similar strategy by Stan Weinstein in his classic book "Secrets for Profiting in Bull or Bear Markets" that uses 30-Weighted MA. What I appreciated most from your video is the "EXIT STRATEGY". Thank you for sharing this simple yet effective strategy!
I'm glad you noticed the similarity! Stan Weinstein's work is indeed a classic in the trading world. It's essential to have both entry and exit strategies in place for consistent trading success. I'm thrilled you found value in our exit strategy. Thanks for watching and sharing your insights!
Its my strategy also using the SMA 30 according to Weinstein..and.also i use the MaCd. I found a special setup who work anytime
@@investisseur101 Congratulations on finding a strategy that works consistently for you! It's great to hear about your success with the SMA 30 and MACD combination. Stick with what works for you and keep up the good work! In trading we only need one thing that produces money. You found yours! Congrats!
Hello there. I'm just wondering, why on the video you are using WMA instead of SMA? So basically you are talking about SMA but as an example in the video you are using WMA. e@@TechnicalAnalysisInstitute
@@TechnicalAnalysisInstituteby the way it's a great video. I like the way you talk, you sound like Donald Trump who is going to win today !!!
On your scalping strategy, You showed closing the trade at the high on the chart at 112.9 instead of using your 2 previous low rule which would have been a significantly lower at around 112.7 which would have cut your gains in half. On the other hand, I have been waiting for someone to post a video showing the use of only one moving average buy and sell indicator using an exit strategy which makes sense. I have been trading single moving average buys and sells for 5 years and doing very well. Very good video and Thank you!
When you scalp you need to take whatever the market wants to give you. It would not make much sense to wait for the exit signal.
I am a day trader....That was exactly what I was looking for....an Entry, Add, and Exit strategy that makes sense. I have been trading for a few years and have tried a lot of different things to put it all together...wow, this strategy is awesome...new traders don't get intimidated on the Exit rules it's easier than it looks at first. I have been using with marking the high/low of the 1st bar on the 3 min. Can play off of those with the 30sma. All the best traders short term use "price action"...that is what is so sweet about this system...you are too. Thanks again for taking the time to make available.
Thank you for your wonderful and inspiring comment. I do hope this strategy makes you a lot of money. I look forward to hearing from you again sharing your results. Thank you for your kind feedback!
Thanks for this excellent content. In this video only buy setup is explained. Is this strategy applicable only for LONG Trades ? Ideally the opposite conditions are applicable for SHORT Trades. Kinldy conifrm my understanding.
Yes, correct! Thank you for your feedback!
So when the low has gone below the 2 previous relative lows........the you enter a short trade i.e. close the long n go reverse. That will be pretty late into the game. If not then, what are the entry rules for the trade #2 i.e. reverse trade.
As a refinement may I suggest using this technique with a 200 sma added. Then take buy trades only when price is above the 200sma and visa versa for sells.
Certainly! Your suggestion to integrate the 200 SMA as a filter for the overall trend direction is a time-tested approach well known in the industry and use by many traders. By buying only when the price is above the 200 SMA and selling when below, you're essentially aligning with the prevailing trend, which can often increase the probability of successful trades.
Thanks for sharing your refinement. Always great to have insightful contributions from our community! Please share your future results. It'll be enlightening to the community.
Thank you. Like way you explain, how to apply 30 days sma indicator and what is the setting? Appreciate give answer. Thank you in advance
Thank you for your kind words and your question! To apply a 30-day Simple Moving Average (SMA) indicator, you would set the period or length setting of the SMA to 30. This means the indicator will calculate the average closing price of the last 30 days and plot it on your chart.
Here’s a step-by-step guide on how to set this up, typically using a trading platform or charting software:
Locate the indicator section on your trading platform.
Choose the Simple Moving Average (SMA) from the list of available indicators.
When prompted for the settings or to edit the indicator, set the 'Period' (sometimes labeled 'Length') to 30.
Apply the indicator, and it will automatically calculate and display the 30-day SMA on your chart.
The 30-day SMA will give you a smoothed representation of the price action over the past month, helping to filter out the 'noise' of day-to-day price fluctuations and show you the underlying trend.
Remember, the SMA is typically based on the closing prices, but some platforms allow you to base it on the open, high, or low prices as well. Make sure it is set to 'close' if you're following the method I suggested in the video.
Thank you for your quick reply. but sorry I can't find simple moving average on trading view platform I can see their moving average simple but there is length and smoothing length, so I am confused there. If you can, please clarify. Thank you.
@@s.ribadiya Of course! In trading view, under indicators, chose Moving Average Simple. Then adjust the length to 30. That's all you have to do! Hope that helps you.
12:03
The latter is that the close is ABOVE the last lows.
So in this case...
Former - exit
Latter - stay long
A diagram at the same time would've helped, though you did it later.
But it is a good tip. 👍
Thank you for your feedback. For some traders who are not adept in recognizing the trend, it may be a lot more than a good tip though; it can be a complete trading methodology. Personally, I prefer to recognize the trend first and apply this strategy thereafter.
Fantastic channel and amazing delivery of the concept… I’m glad I stumbled upon your channel. You should have way more visibility. Your videos are treasure! Thanks for passing along this expertise!
Thank you so much for your kind words and encouragement!Your support helps increase our visibility and reach more people. Thanks again for being part of our growing community
Thanks!
Wow, thank you so much for your generous donation! Your support truly means the world to me, and it helps keep the channel going. I'm so glad you're finding value in the content. If there's anything specific you'd like to see more of, please let me know. Your input is invaluable. Thanks again for being such an amazing part of our community!
Do you have that demonstration in candlestick form?
There is true genius is simplicity and this approach has it. A very nice strategy for getting in, staying in and adding to the trade. Many thanks for sharing.
Thank you so much for your kind words! I wholeheartedly believe in keeping things simple yet effective in trading. I'm thrilled to hear that you found value in this approach. Best wishes in your trading journey!
Boa Tarde:
No intraday 15 minutos pode se operar vendido quando o primeiro candle vermelho fechar abaixo da media aritmética de 30 períodos.
Boa tarde! Thank you for your question. Yes, in a 15-minute intraday timeframe, going short when the first red candle closes below the 30-period moving average can be a part of your trading strategy. However, the moving average must be pointing down!!
Always ensure to combine this with a thorough analysis, other indicators or a confirmation of trend reversal for a stronger signal. Be mindful of risk management and happy trading
This is an incredible strategy. It has turned my losses into profits. Thank you very much. Can please help in identifying in continuation of trend.
You're very welcome! I'm thrilled to hear that the strategy has been so effective for you, transforming your losses into profits. Remember, consistency and continual learning are key in trading.
Please make sure to watch the second video we posted on Moving Averages. It may help you further:
Here's the link:
th-cam.com/video/LM8wYq5noy4/w-d-xo.html
Your success and feedback are what motivate us to keep providing valuable content. Happy trading! 📈
Thank you, sir. I have explored a lot of channels and you are the best I have ever seen. As a professor, you put it concisely and methodically.
Thank you so much for your kind and encouraging words! It's truly gratifying to hear that our channel has stood out to you in your exploration of this field. As a professor, my aim is always to present information in a clear, concise, and methodical manner, and I'm delighted to know that this approach resonates with you.
Your feedback is greatly appreciated and motivates us to continue delivering high-quality content. If there are any specific topics or areas you're interested in learning more about, please feel free to let us know. We're here to support your learning journey!
Thank you once again for your support and for choosing our channel as a resource.
@@TechnicalAnalysisInstitute I gotta hand it to you. You totally deserve it, sir!
Wonderful explanation about M0ving Average in the video in a simple & understanding way.
1) Can i use EMA instead of SMA???
2) Is MA works on any segment/Market like Equities, Commodities, Options in Indian Market???
3) is Time Frame will be depends on our Trading like Intraday/Swing Trading...etc???
Your response will be Highly appreciated sir. Thank you.
Thank you for your kind words and feedback. Here are the answers to your questions:
1) Yes, you can use a 30-period Exponential Moving Average (EMA) in place of a Simple Moving Average (SMA) for your trading strategy. The choice between an EMA and an SMA depends on your trading style and objectives.
The EMA gives more weight to recent prices, which makes it more responsive to new information compared to the SMA. This can be beneficial in a fast-moving market where recent price action is more relevant. However, it can also make the EMA more prone to generating false signals in a volatile market.
On the other hand, the SMA assigns equal weight to all values, which can make it more stable and less prone to fluctuations in a volatile market. However, this can also mean it reacts slower to recent price changes.
If you switch to a 30 EMA, you might notice quicker responses to price changes, which can be advantageous if you're looking for early signals. However, it's important to be aware of the potential for increased noise and false signals. As with any trading strategy, it's recommended to backtest and practice with a demo account before applying new methods to live trades.
2) Absolutely!
3) Certainly! In the video I gave example with different time frames to show it is possible to use for any type of trading style. However, I never recommend day trading. While the strategy will theoretically work, the psychological aspects involved will likely interfere.
Happy trading!
@@TechnicalAnalysisInstitute Thank you for your immediate response sir. It would be have been more helpful for us Instead of "Bars" if you have used "Candles" in the Tradingview platform in the video. But given lot of clarity about MA. Thank you.
@@manjunathakar4943 That is not completely correct! This video should help you understand why sometimes it is better to use bars for specific strategies and why sometimes it is better to use candles. I suggest you watch it attentively. Also, in the next few weeks I'll be posting a full training on one of the most sophisticated tools of technical analysis. For that you need to use Bars, so it will be best you learn the correct use of them.
th-cam.com/video/s9tQsF5CqSs/w-d-xo.html&ab_channel=TechnicalAnalysisInstitute
@@TechnicalAnalysisInstitute Understand sir. Because in India most of us are using candles for the analysis. But thank you for sharing knowledge sir.
Waiting for more useful Knowledge & Analysis from your side. Thank you so much for your time sir.
@@manjunathakar4943 We do too! But that's only one type of analysis. Very useful, no doubt. But a good analyst should be able to use several types of charts at different situations. For instance, if you want to do Ellliott Wave analysis, you should only use Bars. If you want to add positions to established trends you may want to use P&F charts, and if you only need to know the tendency, you will better off using line charts. Those are just examples, but there are many reasons why we should be able to switch from one to the other. Happy trading!
perdonate l'ignoranza ma é valida solo per segnali buy? grazie infinite
Please don't worry about any perceived ignorance; asking questions is a great way to learn.
Technical analysis is indeed a universal tool; it's applicable not only for 'buy' signals but also for 'sell' signals. Furthermore, it can be effectively used across various types of securities, including stocks, bonds, commodities, and even cryptocurrencies. Thank you for your question!
When you change between timeframes you also use the same timeframe for SMA ? so that 30week, 30 4h etc ?
Great question! Yes, you use the same time frame for the MA. Good luck!
@TechnicalAnalysisInstitute Thank you for your quick answer. I would like to ask anotheer question about process. After second close, we drove a line horizontally to the left side and choose first lowest low that crossed by horizontal line whereever it. Am I correct?
Thank you for your question and for following the discussion. I must admit, I'm not entirely sure I fully grasp your question. It would be really helpful if you could review the video again for clarification. Additionally, it would be great if you could join the next live stream, as that would give us a better opportunity to interact and address your query more effectively.
In the meantime, let me reiterate the instructions from the video for clarity:
You should consider buying when there's a first close above the 30 period simple moving average (SMA). However, be cautious if the SMA is steeply pointing downwards, as this might not be an ideal buying signal.
The strategy for exiting is to do so after witnessing 2 closes below the 30 period SMA. Specifically, consider exiting when one of these closes is below the lower of the previous two significant relative lows.
Again, I recommend reviewing the video for a better understanding and joining the next live stream where we can interact more directly and clear up any confusion.
how would i know when the market is shifting from uptrend to either consolidation or downtrend phase? you only showed buy examples.
You're absolutely right; such a comprehensive topic requires a deeper dive than a simple comment can provide. Recognizing market shifts involves understanding various technical signals, patterns, and sometimes combining multiple indicators. I've touched upon this in several of my videos. Stay tuned, as I plan to address such topics in more detail in future videos. For now, I'd recommend revisiting some of my previous content and paying close attention to trend reversals and consolidation patterns. I strongly suggest you go through the Live stream recordings from last week where I gave detailed explanations on identifying trend reversals. You'll find the recordings under
www.youtube.com/@TechnicalAnalysisInstitute/streams
Thanks for your insightful question!
@@TechnicalAnalysisInstitute thank you very much for your teachings.
Hi professor Aldo i been using MA for such a long time but not satisfied with the results now I’ve come across your valuable video about using MA in a correct way so thanks a lot for the informative video and let me tell you sir that the calmness’s of your voice shows the simplicity of the strategy itself using the MA thanks sir i have just one simple question that trade in forex markets and i trade only in 2 pairs GOLD and. US OIL and i am a scalper too i like your 3 min scalping strategy you explained in this video and i trade in 3 min and 5 min so just want to know dose this strategy work in forex markets specially in GOLD / US OIL thanks for your valuable time and plz reply ASAP i am waiting eagerly sir 🙏
Thanks sir for the ❤️ sir but can you plz reply that dose this strategy work in forex GOLD as well as in US OIL pair in 3 min and in 5 min time frames for scalpingggg
I'm glad to hear that you found the video about using the 30-period simple moving average (30SMA) strategy helpful and that the presentation style resonated with you.
Regarding your question about applying this strategy to scalping in the forex market, particularly with GOLD and US OIL, I'd like to offer some important considerations:
Scalping Odds: It's crucial to understand that the odds for scalpers are generally lower. Research indicates that only a small percentage of scalpers consistently make money, and often the earnings are modest, akin to a minimum wage. Scalping, especially in volatile markets like GOLD and US OIL, involves significant risks. You may want to go more into momentum strategies.
Strategy Flexibility: The 30SMA strategy isn't limited to a specific timeframe like 3 or 5 minutes. In the video, I demonstrated its versatility across various timeframes. However, it's imperative to have a strong grasp of market context to tilt the odds in your favor. Each market and timeframe might require adjustments to the strategy for optimal performance.
Market Context: Understanding the broader market context is key. This involves being aware of economic events, market sentiment, and other factors that can influence price movements in the forex market. ideally you need to use a dual time frame strategy to confirm the larger trend direction.
Further Learning: I recommend watching a couple more of my videos for a deeper understanding of moving averages in trading.
th-cam.com/video/rnhPdR0r_PM/w-d-xo.html
th-cam.com/video/LM8wYq5noy4/w-d-xo.html
The first is a live stream where I delve into various aspects of moving averages: Live Stream on Moving Averages. The second video explores the use of dual averages. These will provide you with additional insights and strategies.
Remember, while strategies like the 30SMA can be powerful tools, they are most effective when used with a comprehensive understanding of the market and solid risk management practices. Scalping requires quick decision-making and can be quite challenging, so it's essential to approach it with caution and continuous learning.
Feel free to reach out if you have more questions or need further clarification. Happy trading!
Thanks sir for your reply in such a detailed way I appreciate it thanks a lot god bless you and keep up the good work 🙏
Thanks. Learning a lot frm ur videos. What will be the criteria for taking profit in this strategy. Regards
It's great to hear that our videos are providing valuable insights for you! Regarding taking profits using the strategy explained, the key is to observe the position of the second candle that closes below the Moving Average (MA) in an uptrend. Your cue to take profit would be if this second closing price falls below the two previous relative low points. This indicates a potential shift in momentum and can be a prudent point to lock in gains before the trend possibly reverses. Keep refining your strategy with practice, and don't hesitate to reach out with more questions as you continue your trading journey. Happy trading!
@TechnicalAnalysisInstitute I highly appreciate your reply and explanation in detail. Your teaching method and knowledge are matchless. Im feeling lucky to be in your followers. Stay blessed Sir.
@@sA-dn3qy Your words mean a lot, and I'm incredibly grateful for your appreciation. It's followers like you that make this journey so rewarding. I'm here to support your trading journey, so don't hesitate to reach out if you have any questions. Stay tuned for more insights, and together, let's continue this path to trading success. Stay blessed too!
There is a contradiction there. One instruction is to check after two closes are made below the moving average, whether ANY of the two closes are below any of the two previous relative lows and another instruction says, to only compare the SECOND close below the SMA to any of the two previous relative lows. Please clarify.
Second relative low is your stoploss
Good content, but I hv. One query...
Video time 15.28 hourly chart
The reference u hv given sir,..Before that also some 10 15 candles price crossed and closed ab 30 sma...And it came down and hit SL...
Would like to hear yr advice on that.
And sir, one request plz make one video using Nifty 50 index chart with yr strategy.
Regards
Hello and thank you for your insightful comment. You've pointed out a very valid observation. Remember, while the strategy I shared is robust and can provide a significant edge, no strategy is 100% foolproof. There will be instances, like the one you've highlighted, where the trade may not go in our favor and that's a part of trading; that's why we use protective stops. The key is to maintain a consistent approach and risk management.
It's essential to understand that while this strategy can greatly increase your chances of success, it's not immune to losses. In trading, it's not about winning every single trade, but about having a profitable overall strategy in the long run.
I appreciate your feedback and will definitely consider creating a video focused on the Nifty 50 index. But one point of clarification is that while I'd love to take credit for it, this is NOT my strategy; it's a proven strategy used by many professional technicians and traders. Stay tuned and happy trading!
Hi...What period is used for the demo in the case above?🙂 Thanks
I am not sure which demo specifically you're referring to since there are several examples, but the bottom line is that the 30 period is very useful in our experience.
@@TechnicalAnalysisInstitute ok thanks sir..
dear sir, does this apply to stocks and equity market also.. please throw light on it.thank you
Of course! It applies to all financial assets. A moving average is a concept that applies to practically any graph.
In which time frame we should use this strategy like Daily, or 15 minutes or so. Yours reply awaited. Thanks
In whatever time frame you normally trade. That's why I gave several examples using different time frames.
kindly tell can we reverse position in this strategy if yes then how and when to reverse positions according to this strategy, i am not able to find anyway in this scenario
No, this strategy isn't designed to keep you perpetually in the market or to frequently reverse positions. If you've taken a long position, it's based on your analysis and judgment that the trend is upward. Our taught exit strategy aims to shield you from premature exits. To change your perspective on the trend direction would require further analysis and compelling evidence. So, while you can theoretically reverse a position, this strategy doesn't inherently provide a mechanism for such reversals based on its core principles. Always ensure your decisions align with the foundational logic of the strategy you're employing. I hope this helps you...
Let's say we are scalping on 1 min or 2 min chart , if we go long and things don't go our way , at which point can we decide to go to the opposite direction ( in this cas short ), when the second relative low is broken for example ? Basically when we are in a range market whatever the time frame how do we manage to not get stopped out too many times
That's a very important question. The key is to understand that absolutely all trading strategies should begin with one step: Trend Identification.
In other videos we covered that issue explaining different ways to do that using a larger time frame without being an expert technician. So the short answer is, always trade in the direction of the trend and ignore the opposite signals.
@@TechnicalAnalysisInstitute ok what you called the reference frame ( identify the direction of your next trade properly ) , 5 times greater tht the trigger chart if I understood properly
@@elwoodpalmer7622 Exactly!!!
Thank you for sharing your valuable knowledge and explaining so well! I have used a similar strategy with 8 and 21EMA, combined with Price and Volume analysis. Very similar but I love the simplicity of the 30 WMA and have added it to my charts. Much appreciated and you have a new subscriber here.
Absolutely delighted to hear that you've found value in our content! It's always great to know that fellow traders can adapt and integrate new techniques into their existing strategies. Welcome to our community, and I'm looking forward to sharing more insights with you. Happy trading!
Hi, what time frame are you trading? Are you scalping by any chance?
Prof... How to know if the SMA is steeply pointing upwards or downwards? Do you use naked eyes to determine that?
Yes indeed! Also try to have an average of 200 bars on your chart. That way you won't spread it too much and the slope of the average will be preserved.
How to decide if should go long or short when price is frequently closing above and below SMA30. Also logic of choosing 30 period?
Thank you for your insightful question! As highlighted in the video, when considering positions relative to the 30-period SMA, it's crucial to note the direction of the moving average itself. For a stronger indication of a trend, the 30-period SMA should be clearly pointing upwards for long positions or downwards for short positions. In cases where the price is frequently crossing above and below the SMA, and the SMA is flat, it often indicates a sideways or range-bound market.
The choice of a 30-period SMA strikes a balance between short-term and medium-term trends, offering a broader view of market momentum. In such flat or sideways markets, relying solely on SMA can be misleading. Hence, combining this with other technical indicators and analysis methods is crucial for better accuracy in identifying the market trend and making informed trading decisions. That's the reason why all student of the Technical Analysis Institute must go through a deep training on Elliott Waves. It's relatively easy to know when and in what direction to trend using Wave Analysis. In those situations we use the 30 strategy to time our entries.
Hello sir thanks for the simple strategy one point on your charts you are using WMA and you are asking to use SMA co which one is the right combination either SMA or WMA. Thanks in advance for this wonderful work and video.
Thank you for your kind words...
To clarify, the strategy I intended to discuss uses either the Simple Moving Average (SMA) or the Weighted Moving Average. SMA is a widely used indicator that provides a clear view of the trend by averaging the price data over a specific period. It's straightforward and effective for many trading strategies.
However, the WMA can also be a valuable tool as it assigns more weight to recent data, making it more sensitive to price changes. Depending on your trading style and goals, you might find one more suitable than the other.
I strongly suggest you test both before committing any real funds to the strategy. Good Luck!
This strategy only for buy? Can I use for selling?
HI and thank you for this amazing video . Does it work the same way for selling
You're very welcome! Thank YOU for your question and feedback. The strategy works exactly the same when selling. Simply inverse the instructions. Happy trading!!!
If you buy the first close above the SMA, does that mean you wait untill the next days opening to actually place the buy? I noticed that sometimes the second day jumps quite abit above that buy signal. Is there away to deal with this?
Of course! There are always a variety of ways to deal with the type of situation you describe. A simple solution is to enter at the 38 to50% retracement of that bar. Not all signals should be seen as black and white. Some can be seen as green lights to move in that direction. The how is as diverse as there are traders.
Hello Sir the examples you were showing i saw you used 30 SMA on one chart and 30 WMA on another.So which one you suggest to use?
Hello! Great observation. Both the 30 SMA (Simple Moving Average) and the 30 WMA (Weighted Moving Average) have their own merits. The choice between SMA and WMA often comes down to personal preference and the specific characteristics of the market you're trading.
The WMA gives more weight to the recent prices, making it more sensitive to recent price action. On the other hand, the SMA gives equal weight to all data points, offering a smoother overview of the market trend over the period.
For the strategies I demonstrated, you can experiment with both to see which aligns better with your trading style and the particular asset you're trading. It's always a good idea to backtest any strategy with both types of moving averages to determine which one offers better signals for your specific scenario.
Remember, there's no one-size-fits-all answer in trading. It's all about finding what works best for you. Happy trading!
Hello sir....just happened to see your video & realised how lucky to get to see such simple but valuable content from you. My sincere thanks to you ! I will surely apply this knowledge in my future trading journey.
So nice of you to say. I'm extremely pleased to know our content has been helpful to you. I hope your trading moves at least to the next level and you're able to generate plenty of profits. Many thanks!
What a clever, elegant way to approach the market using Moving Averages. Thank you Professor!
I'm glad you found it useful. I thank YOU for your kind feedback.
Hello and thank you for this valuable advice. Is the strategy the same for selling please?
Absolutely! All you need to do is to invert the concept!
You'd typically look for the price to close below the pointing down moving average as a potential signal to consider a short position. Always make sure to use proper risk management and test the strategy in your simulator! Happy Trading!
@@TechnicalAnalysisInstitute thanks so Much sir....I need to practice because I have a lot of trouble recognizing the lowest ones...
Sir, thank you for the info, does this will work in option buy intraday
Thank you for your comment! The single moving average strategy can be applied to different markets, including options for intraday trading. However, it's essential to backtest any strategy on the specific market and timeframe you intend to use it on. Options have unique characteristics and factors like time decay that need to be considered. Always test and practice in a demo environment before applying any strategy in a live trading scenario. Happy trading! 👍
Do you reverse position if you get a close on the other side of the MA?
That's such a great question! Thank you!
The answer is theoretically yes, but actually, no. The reason is because if you follow the instructions and are sure to see the MA pointing in your direction, the trend should be in that direction until the MA points in the opposite direction. I hope that makes sense to you. Otherwise, please come to the live stream on Wednesday and I'll try to explain it better then. Thank you for your wonderful question.
Can you make the bars in candles for easy identification. Thanks
For your request to make the bars in candles for easy identification, I would actually recommend using bars in this particular case. Bars can be more effective for easy identification in certain strategies.
However, to understand the differences, advantages, and disadvantages of using candles and bars, I highly recommend watching this video from the Technical Analysis Institute:
th-cam.com/video/s9tQsF5CqSs/w-d-xo.html&ab_channel=TechnicalAnalysisInstitute
It provides a detailed explanation that will help you decide which is best suited for your needs.
Hi can it be used in forex,commodities or cryto? Still confused with the closing of the trade. Is it only apply to buy only? Thank u so much sir.
Yes, the strategy can be applied to forex, commodities, and crypto markets. It works for both buying and selling positions. Just invert the instructions. You may need to watch the video again to understand how to close the trade.
Thanks for your question!
Its a very interesting video sir, really appreciate it...however if u have the time, care to share more on how to exit the trade? Coz im trying to figure it out but still confusing, from profitable to unprofitable just to follow the relative low 😁. Thanks
So far I have only watch this video and I am completely impressed. Love it!
Glad you enjoy it!
Does it work both ways, in uptrend and downtrend?
Practically all strategies of technical analysis work both ways. With the exception of one long term indicator based on the time it takes the market to recover from heavy losses, all strategies apply to up and down trends.
@TechnicalAnalysisInstitute
This is what I thought, thank you very much for your reply.
I also have a question regarding your exit strategy. We know that we have to look to the left for two significant lows, but what if candles are still building, and another, and another, do we keep looking to the left searching for another significant lows? By doing it it will never end. So when to finally exit the position?
Best regards
The video I just watched, the explanation is easy to understand for beginners like me who are learning in the nfc community
Great to hear! I am not familiar with the NFC community, but wish you well in your learning process.
While looking for left-side relative low, do we need to see low, close, or relative low?
Relative low on the left, closes on the right
Hi. Very useful video, thank you. I was wondering if this would apply to any asset like crypto?
Hi there! I'm glad you found the video useful. Yes, the principles of moving averages can be applied across various assets, including cryptocurrencies. However, it's important to remember that each asset class may have its own volatility and unique characteristics. Always backtest and adjust the settings accordingly for the specific asset you're trading. Happy trading! 👍
Thanks so much @@TechnicalAnalysisInstitute I will test it and keep watching and learning. Thanks
Thank you for this wonderful strategy Prof. But what should I do when the price closes below or above 30 SMA but an SMA is still pointing downwards or upwards?
That's really a good question! Thank you for asking.
In a downtrend when the price closes above the 30 SMA and the SMA is still pointing downwards, it could indicate a continuing downtrend. So you may want to stay in the trade until the SMA starts to flatten out.
Conversely, if the price closes below the 30 SMA while the SMA is still pointing upwards, it often signifies a shallow correction. If the correction develops into a much deeper one, the MA will flatten.
Always remember to use market context. Hence all the other forms of analysis we teach on the channel. Happy trading!
@@TechnicalAnalysisInstitute Thanks in advance!
@@TechnicalAnalysisInstitute so when the price is in range, better we stay out of the market because at that time, SMA will flatten. That's to stay out until it starts trending upwards or downwards and to find signal when price closes below or above SMA while an SMA is pointing up (for buy) or down (for sell). OR to add positions as you instructed when price fails to reach second relative low or high and closes again below or above SMA?
hello coach...
How can we make cell trade...
and we have more questions so
plz make one more video to elaburate it... thanks
Hello! I appreciate your interest and feedback. Taking short or "sell" trades using the strategy would essentially be the inverse of the buy setup. I understand there are more questions and complexities to address. I'll definitely consider creating a follow-up video to dive deeper into the sell-side and answer additional queries. Additionally, we might also cover this in one of our upcoming live streams, so be sure to stay tuned. Thanks for your support!
Hi. Very interesting. Does it work all the way around for shorts as well?
Yes, indeed! To my knowledge there's only one indicator that works in one direction, that's the original Coppock. Other than that all examples of any strategy we teach works in both directions indistinctly. Happy trading!
Very good content sir. I have used the same approach for years however I use the 34 weighted instead. The two candle comparative analysis to the left was an interesting concept I will back test. I use more advance method to stay in trades but this is a great addition. Thank you for your time to put this together.
Thank you so much for your feedback! It's great to hear from someone who has been using a similar approach. The 34 weighted moving average is certainly another effective tool, and I'm glad to see that experienced traders like you are open to exploring new methods and concepts.
The two-candle comparative analysis is something that has worked well for many, and I'm keen to hear how your backtesting goes. Always exciting to add another tool or perspective to our trading arsenal!
I appreciate your acknowledgment of the effort put into creating this content. It's always fulfilling to know that it adds value to the community. Please keep sharing your insights and experiences; it enriches the learning for everyone.
Warm regards,
Aldo
@@TechnicalAnalysisInstitute very apt response
Have you tried 50 WMA instead of 34? I feel this is better as it works as Support and resistance
How was your result backtesting this strategy ?
How do you set tp . Thanks
Thanks for sharing. Do I understand correctly, that the 30 SMA strategy only takes long trades when price is above 200 SMA?
You're welcome! What an amazing question. I thank you for bringing it up.
While the video suggests that taking long trades when the price is above the 200 SMA can offer a better confirmation of an upward trend, it doesn't strictly mean that you can't take long trades before that. But it is clear that any buy signal will work better after the uptrend is confirmed.
The 200 SMA is a general guideline indicating the primary trend. Prices being above the 200 MA is often considered a sign of an uptrend. However, with the 30 SMA strategy, and since it can be applied to any time frame, it's possible to take long trades even before the price reaches above the 200 SMA.
Now let me be clear about it: any buy signal will have better odds when prices are above the 200 Moving average and every sell signal will have better odds when prices are below the 200 MA: Just applying that to any strategy, it will increase its winning ratio.
Thank you so very much for question and happy trading!
@@TechnicalAnalysisInstitute Thanks for the clarification!
Thank you for this wonderful strategy. I guess keeping it simple is always great. I would love you to make a video on how to do manual backtest of this strategy on MT5. Nice work as always.❤
I'm glad to hear that you appreciated the strategy and found value in keeping things simple. Your suggestion for a video tutorial on how to manually backtest this strategy on MT5 is a great idea. I'll definitely consider creating content around that topic to provide more in-depth guidance. Thank you for your continuous support and for the kind words! Stay tuned for more updates. ❤️
Hello sir. Simple yet amazing. But may I request you to create the same strategy using the traditional Japanese candlesticks rather than the bars? That would be even more helpful io understand the concept of the relative lows. Thanks a ton sir.
Thank you for your kind words and feedback! I'm glad you found the strategy useful.
I understand that many traders prefer the visual representation of Japanese candlesticks over traditional bar charts. They can indeed offer a clearer picture of the market's sentiment in certain contexts. I'll certainly consider creating a version using Japanese candlesticks to further elucidate the concept of relative lows. Your feedback helps in refining our content, and I genuinely appreciate it.
In the meantime, you can apply the same principles discussed in the video to candlestick charts. Just focus on the wicks (shadows) of the candles for highs and lows, and the concept remains largely unchanged.
Thanks again for your suggestion, and happy trading!
Hi maybe try Fractals to show you the relative lows and highs
Is the 30 WMA simple or exponential? Thanks
The 30 WMA you saw in the video refers to the 30-period Weighted Moving Average, which is different from both simple and exponential moving averages. A WMA assigns more weight to recent prices, aiming to provide a quicker reflection of price movements.
In the context of the strategy discussed, using a WMA instead of a simple or exponential moving average shouldn't significantly alter the overall effectiveness. Hope this helps clarify!
One of the best srategy i studied so far! Can this be applied on the daily timeframe instead of weekly?
Absolutely! I believe in the video I give examples using short term charts like 3 minutes. However, it works best in larger time frames - you get less frequent false signals. using it in short term charts require the psychological prowess and control of a Zen Master.
Excellent presentation ... very similar to Stan Weinstein and trading the weekly chart ... I like your idea of trend following!
Glad you enjoyed it! Thank you for your feedback
Good Sharing, Thank You Sir
My pleasure! I hope you can benefit from all the videos presented in our channel. Good luck and Happy Trading!
Thank you sir
I've been trading for a few years using something similar, but have had issues with stop-outs when the market ranges and whip-saws. What you are explaining here seems to overcome that to a large degree. I love the simplicity!
I'll be backtesting and see how it goes.
I'm assuming the stop goes below the lowest low of trend movement.
Absolutely! First off, I'm thrilled to hear you appreciate the simplicity of this strategy. Addressing your point, you've nailed it:
In this strategy, the stop is indeed set below the lowest low of the two relative lows. This method helps to buffer against the noise of the market, especially during periods of consolidation or when the market exhibits whipsaw behaviors. By setting the stop based on the relative lows, we're allowing the trend to breathe and potentially ride out those temporary market retractions without getting prematurely stopped out.
However, it's crucial to continually trail the stop based on subsequent relative lows as the trend progresses. This not only locks in profits but also ensures you're dynamically adapting to the market's evolving structure.
I encourage you to backtest this method thoroughly. Incorporating this approach to stops might reduce premature exits and provide more room for the trend to unfold. Remember, no strategy is foolproof, but the aim is to provide a solid edge over a series of trades. Good luck, and I'm eager to hear how your backtesting goes!
How did your backtest turn out?
Great, thank you Prof .... next video should be about the exit point
Thank you for your comment! Regarding the exit point, I've actually covered it in the video. It's identified as the point where prices close below the MA and the second close is lower than the 2 relative lows. I recommend watching that section again for clarity. And thanks for the suggestion on the next video topic, it's always great to hear what viewers are interested in!
Hi. Can you help me understand how to find the relative lows? I am very new to trading and I just started to learn it for about two weeks. It seems like a very basic thing for all the rest, but I hope still you can help me fully understand it.
If you have just started learning, this strategy would not be appropriate for you for involved recognizing the phases of the trend. Skipping that step will result in many losses.
I would strongly suggest you start with the strategy I taught in this video:
th-cam.com/video/R_RenLM6rDQ/w-d-xo.html
You'll have less to think about and you can have a good degree of success with it without being an expert in technical analysis.
I hope that helps you! Please don't hesitate to ask if you have any questions. Thank you for your feedback!
@@TechnicalAnalysisInstitute THank you so much for taking the time to respond and point me in the right direction. Much appreciated!
very good strategy i am impressed by your teaching method. what i understanding from this lesson first check the trend of the market price and then take the position and check for 2 close position and if those 2 close position above the relative low then don't need to exit just continue your trade.
Sir can you make the same strategy video for sell position also. we will be waiting for sell position for sma30 strategy.
Thank you for your kind words and for engaging with the content! I'm thrilled to hear that you find the strategy and teaching method effective. You've got the essence of the strategy quite right.
Your request for a video focusing on the sell position using the same SMA30 strategy is an excellent idea. It's important to have a symmetrical approach to both buying and selling in trading, as markets move in both directions. Creating a companion video that explores the strategy from a sell position perspective is definitely on my radar now, thanks to your suggestion.
Stay tuned to the channel, as I'll be working on this new video to cover the sell side of the SMA30 strategy, ensuring you have a comprehensive toolkit for both bullish and bearish markets. Your patience and anticipation for this content are greatly appreciated, and I'm excited to share it with you and all our viewers soon.
Keep watching, learning, and trading smart! Thank you for the suggestion!
Do we think that these rules apply equally to shorting a falling moving average? Can we use the same entry and exit roles when shorting or does a falling market tend to behave differently?
Markets often fall faster than they rise due to the fear factor; sell-offs can be more abrupt and volatile. This means that generally speaking shorting strategies might require quicker responses and more rigorous risk management.
However, the basic principles outlined in the video for entry and exit signals can remain the same using this strategy. Thank you for your great question!
thank you so much. o you have a video on the use of range bars? Thanks
Thank you for your kind words! Currently, we don't have a dedicated video on Range Bars. However, it's a great topic and I appreciate the suggestion. We'll consider creating content on it in the future. Stay tuned and make sure to subscribe to get notified of our latest content!
From tomorrow morning i will use this strategy and go for the kill. Thank you for sharing this knowledge.
That's wonderful, but you should always test it in demo first so you can determine the best time frame, best period, best time and conditions and even best asset to apply it to. Good luck!
I don't have the skill or program to backtest this. I wonder if you have done so and what were the results
To watch for relative low and relative second low, how many back ward candles (or look back) we have to go?
When identifying a relative low or a second relative low, there isn't a fixed number of candles you have to look back. Instead, you're observing the price behavior in the context of the recent trend.
@@TechnicalAnalysisInstitute got it. Thanks for your quick response
Sir, I am unable to understand the concept of relative low .can you help with some examples of candles where position had to be exited as the price went down two relative low.Also would like to know the tgts in this strategy.
"Absolutely! The concept of a 'relative low' can be visualized like a hand pointing downwards. Picture three consecutive bars: the middle one (similar to the middle finger) is the lowest, while the ones immediately before and after it (like the index and ring fingers) are higher. This forms a 'relative low' pattern.
Regarding targets: they vary depending on various factors. The one I explained on the video is when the second close below the MA is lower than the 2 previous relative lows. Hope this helps clarify things! Remember, practice on a demo account to get the hang of it. Happy trading! ✌️
What relative low mean ? Thanks!
A relative low refers to a specific point on a chart where the price of an asset dips but is surrounded by two bars (or candles) on its left and right that are higher. In simpler terms, it's the lowest point in a specific range where the bars adjacent to it are both higher. It helps in identifying potential turning points in a market. I actually covered this concept in detail in the video. Think of it like a hand pointing down where your middle finger is the lowest low and your index and ring fingers are higher than the middle finger. I'd recommend revisiting that portion of the video to get a clearer understanding.
I am having a hard time finding a screener for stock market where I can screen for price penetrating 30 period sma...does anybody knows one?
Nice strategy, straight forward thanks !!
Thank you for your kind comment and feedback. Indeed, the strategy is simple and extremely effective.
this stretegy help me very much. as i lost too much in previous year and i quit trading but now i getting profit after applying it on daily chart only. one thing i need can you please share a indicator that popup when price cross the moving average. there are available but all are paid can you give us for free. thanks again
I'm delighted to hear that the strategy has been beneficial for you, especially after facing challenges in the past. Regarding your request for an indicator, over the years, we've developed various proprietary indicators, and while most of them were licensed for a fee, currently we offer only the TOP Indicator exclusively to our members on TradingView. I understand the desire for a free tool, but our commitment to quality and the value these tools bring often come with a cost. I would recommend considering one of our membership levels to gain access to the TOP Indicator. In the meantime, you might explore TradingView's public library as there are many free scripts and tools developed by the community which could assist you. Thanks for your understanding and continued success in your trading journey!
I'm catching entries well Sir using this strategy. Thanks for it. But where should I place TP? Thank you. I'm intra day trader.
Sorry but I don't know what you mean by "TP". Please clarify. Thanks!
@@TechnicalAnalysisInstitute I mean where to place Take Profit?
@@renaldshirima8989 From your question it is obvious to me that you're not referring to the particular strategy taught on this video since there are no targets involved.
Perhaps you're looking for answers to a more general question as an intraday trader. So I would address you to explore the many systems to take profits that intraday traders use. Look into historical levels of support and resistance, Fibonacci extensions and retracements, Average True Range, etc...
I will appreciate if you can teach the same technique with candle stick chart becoming little difficult to understand in step line.
Thanks for your comment! While candlestick charts are popular, bar charts also offer significant advantages and can simplify your analysis. I strongly suggest learning different chart types because they all have benefits that can be used with particular strategies.
@@TechnicalAnalysisInstitute Thanks
I looked at the strategy you mentioned using random shares, all of which had the opposite effect - when I found two lows than the closing price of the second candle below the SMA30 (CLOSE), the price began to drop sharply and over time. When I found two lows that were higher than the second candle's low that closed below SMA30 (CLOSE), the price went up. I checked on the hours/daily/weekly/monthly graph and all of them had the same results. What did I do wrong?
Thank you for reaching out and sharing your experience with the strategy. It seems like there might be a bit of a mix-up in the interpretation. Let me clarify to ensure we're on the same page.
The strategy revolves around using the 30-period Simple Moving Average (SMA) as a trend indicator and a signal for entry and exit points. When the price closes above the SMA that is pointing upwards, it's considered a buy signal. The unique aspect of this approach is the exit strategy.
For the exit, you don't just wait for a close below the SMA; you look for a close that is also below the two previous relative lows on the chart. This is a stricter condition because it combines the SMA signal with price action, enhancing the exit signal's robustness.
If you're observing that after a second close below the SMA (where the close is below the two previous relative lows), the price drops sharply, that's consistent with what the strategy anticipates as a sell signal or an exit point for long positions.
On the other hand, if the second close below the SMA does not break below the two previous relative lows, the price then moving upwards suggests the downtrend isn't confirmed, and exiting might be premature if you're looking at long positions.
It's essential to remember that no strategy works 100% of the time, and market conditions can greatly influence outcomes.
Also, consider the overall market trend and other technical indicators that could give more context to the SMA signals. If you’re consistently observing the opposite effect, it might be worth examining the specific conditions or markets where this occurs and adjust the strategy accordingly.
I hope this helps clarify the strategy. Keep experimenting, and don't hesitate to ask if you have more questions!
Thanks for sharing this. Moving Average has always been my favorite indicator. Can we use it on currency pairs
You're vert welcome! Absolutely yes, you can use it in all assets. Just make sure to make the small adjustments needed for better performance.
very good content, quick question for the sell order rule, it will be the opposite of the buy order rule, just to make sure cause in the video you never mentioned that.
Great video! If you’re trading on the 3 minute chart, wouldn’t the EMA be better than the SMA? Also…would this work on crypto?
Thank you for your feedback! I would never trade on a 3 min chart. Gambling money would probably be more fun and have better results.
The strategy works in all financial assets. The only difference is that in Crypto you may want to test non traditional periods to adjust better for the volatility and extended trading hours.
@@TechnicalAnalysisInstitute Thanks for the quick reply. Appreciate it. One more questions: What do you recommend for a a stop loss in this strategy? I hope in the coming new year to take your mastery courses!
This strategy does not have a stop loss, it has an exit strategy. The exit may be below your entry point if you went long, so that would be your stop loss.
Glad you're considering the Technical Analysis Institute.
@@TechnicalAnalysisInstitute Thank you!
Thanks for sharing! I am also in the learning phase of the NFC community. Every day is a new opportunity to learn more about trading and experience this exciting journey.
Absolutely! The journey of learning, especially in the trading world, is ongoing and filled with new discoveries. It's wonderful to have fellow learners like you in the community, sharing experiences and growing together. Let's keep the momentum going and make the most of every opportunity. Here's to many more enlightening days ahead! 📈🌟
Greetings from India.I am excited after watching this video. After watching ichimoku strategy , I thought I got what I was after. So now I face another problem i.e. which one to go with ☺(you were kind enough to reply to my comment in the ichimoku startegy video). One question: 'Two closes' means two 'consecutive closes', right?
No, the closes don't have to be consecutive. And there is no reason to chose either or. Both strategies can be applied at different times or you may even combine them and define your own strategy based on those two. You can enter the market with one and add with the other. There are multiple things you can do when you have a solid foundation on technical analysis. So please keep learning, test and above all, be sure to secure a profit factor larger than 2 once your strategy is in place.
Thank you for your feedback and question.
@@TechnicalAnalysisInstitute Thank you for your guidance.I will keep in mind and will follow them in my trading and would share the experiences as and when they are relevant.
I look forward to reading your success story. Thank you!
Thank you for sharing. It sounds good but doesn't work or i could not understand 😪
My question is well, lets say prices are closing below the MA. And if not the second close, but the third or fourth close occurs below the relative two lower lows on the left, shouldn't it be necessary to exit?
You're welcome! Of course! The two closes are the minimum not the maximum. After the second close below the average, every close us be checked against the lower lows of the left. I hope that makes sense...
@@TechnicalAnalysisInstitute thank you very much 👍
Thank you for such a good lesson. It was very informative, and I am about to try it out; thank you for your time and effort.
You're very welcome! I'm delighted to know that you found the lesson informative. It's great to hear that you're ready to put what you've learned into practice. Remember, the real learning begins when you apply the concepts to live markets. Take your time, be patient with yourself, and don't hesitate to review the material as needed. If you have any questions or if there's anything you're unsure about as you try out the strategy, please feel free to reach out. Good luck, and may your trading journey be as rewarding as it is educational. Thank you!
for me i use 50 and 100 SMA for my "trading window" and only trade stocks that are in uptrends, and i use 10 and 20 EMA to decide whether to buy or sell, usually i always sell if price overextend from 10EMA or fall below 20EMA
Wonderful!!! That's a solid approach! Using the 50 and 100 SMA to define the overall trend and then utilizing the 10 and 20 EMA for timing entries and exit points can indeed be effective.
Thanks for sharing your method with our community, and I hope you continue to find success with it. Happy trading!
Hi may I please ask how long you've been using this strategy and has it been profitable for you?😊
@@Jeff-ox4og yes it has, of course i have my own down days and those days give me hard lesson about risk control, my strategy are inspired by oliver kell and my risk control method i learn from mark minervini, both are champions of the US Investing Championship. to be honest i am still a newbie with just a one and half year of experience, i always do my own research and i fell in love finding new trading ideas and concept.
@@Jeff-ox4og I appreciate your question to @alessavictoria and I would like to pitch in if I may... It’s important to remember that the outcomes of a strategy are highly individualized and not necessarily repeatable across different traders.
It's crucial to understand that the effectiveness of any trading strategy hinges on a myriad of factors. These include the context in which it's applied, thorough prior analysis, the amount of capital involved, the sizing of positions, the trader's ability to mitigate risks, and their personal risk tolerance. Additionally, factors such as trade management, the individual's psychology, and their unique approach to the markets play a significant role.
I even posted a video on how trading sizing can help eliminate the risk of a position entirely and as a result increase the profitability of any strategy. You can watch it here: th-cam.com/video/T5dKTYkLDUM/w-d-xo.html
After you see that video you'll realize that the positive outcome of a strategy is not the strategy in itself.
I encourage you to consider these aspects when evaluating or applying any trading strategy, and always approach trading with a mindset that embraces learning and adaptation to your unique circumstances. Thank you for allowing me to be part of the conversation. Happy trading! 😊
When you trade in lower time frame you should use higher SMA. 200 SMA is good for 1 m. 100 SMA is good for 3m&5m. 50 SMA for 15m and so on
Have you considered making the buy conditions symmetric with the sell conditions?
Very good examples though I have a question: if I buy above the MA and price went fairly low, how far away is the stop loss?
Thank you for your question! As mentioned in the video, the stop is typically placed below the lowest of the two previous relative lows. It's a key point in the strategy, so I'd recommend re-watching that segment for a clearer understanding. Always ensure you're comfortable with the level of risk before placing a trade. Hope that helps!
Very helpful. Thankyou 😀
Great Video. Wll join your training soon. All the best.
Glad you found the video useful. We look forward to welcome you in our program! Thank you for the feedback!
First of all, thank you and subscribe to your channel! What I noticed is that in the smaller time frame examples you talk about the 30 SMA, but you have a 30 WMA on the chart?
Not much of a difference! The essence of the strategy and what makes it different, practical and efficient is that it has very clear and systematic decision making. Having said that, it makes more sense to use a Weighted moving average in smaller time frames, but keep in mind that the smaller the time frame, the more false signals you'll get. Good Luck!
@@TechnicalAnalysisInstitute Thanks for the quick response! I understand :-) I will test and report back! Under 1 hour timeframe the WMA, or at what timeframe would you set the limit for the SMA?
@@ervonHier Not at all! You can use it in any time frame, but if I were you, I would set a limit to how small a timeframe I want to trade. Consider the fact that virtually no day trader earns money according to research.
Well I'm trading the strategy and I'm liking it the challenge you face on lower timeframe is falseouts and lot of invalid closes l bet using it on a bit higher tmfr is better as compared to 2 min and 3 min chat
Thank you for your feedback! Practically all strategies work better in higher time frames... Trading of 2 and 3 min charts require extreme mastery, but the principle is the same...
Do you advice to put a fixed stop loss on the second relative high or low because sometimes you not be on the screen when the market is moving ?
@@godfreyrinoona1361 Not at all! The placing of the stop there is because typically, if prices print beyond those levels, there's likely a change in trend.
I trade something similar. Can you give any advice on Stop Loss placement? Thanks
Of course! In this strategy, an initial protective stop isn't typically used due to the very specific exit guidelines. If a position begins to move against you right away, it's crucial to refer to the exit instruction: 2 closes, look to the left on your chart and identify the two previous relative lows. This will give you a clear indication of where to consider an exit. Remember, the strategy emphasizes a disciplined approach, so it's vital to adhere to the exit criteria when they're triggered. Hope this helps and happy trading!
Thanks for your reply. I guess a SL a bit below the lower of the 2 lows or above thetow highs would work. I trade the daily and don't like to leave positions overnight without a SL@@TechnicalAnalysisInstitute
When you say close what do you mean , Is it the price at the end of the day?
If you are using a daily chart, yet. But it refers to the closing price of each period, so if you're using an hourly chart, it means at the end of the hour.
@@TechnicalAnalysisInstitute Thanks for the prompt reply
@@musthaveacamel2157 You're very welcome!
@@TechnicalAnalysisInstitute May the bird of prosperity always nest in your roof
New to your channel snd i like it .
Can you tell me if that strategy wirks for stocks as well?
Of course! Welcome to the channel, and I'm glad to hear you're enjoying the content.
The strategy we discussed is primarily based on price action, which is a fundamental concept applicable across various financial markets, including stocks. While it was demonstrated in a specific context using Forex pairs, the core principles can indeed be applied to stocks, Futures or Cryptos.
As always, I recommend backtesting any strategy on the specific assets you're interested in trading to ensure its effectiveness. Stay tuned for more insights and happy trading!
P.S. If you're interested in even deeper levels of analysis, I recommend you watch our full week intensive on the Elliott Wave Principle. You should be able to watch it under the Playlist tab. Enjoy!
Hi, Prof. Aldo. Thankyou very much for the video. I wonder if you could clarify the sell part please. In the second example which starts at the 15 minute 16 second mark of the video on the 1h chart, the first close below the MA occurs on a very long bar where the close is approximately 110.50. I will call this bar position zero. The bar to the right which I'll call position 1 also closes below the MA. I will call the bar immediately to the left of position zero, position minus 1. So, we have two bars where the close is below the MA and we look to the left to find two relative lows. In the video at 16:05 you point to the bars which are in position minus 11 (which is below the MA) and position minus 20 (which is above the MA) however I can see two other relative lows which occur at position minus 3 and position minus 6 which are both above the MA and above the closes of positions zero and one. Can you please help me understand why you passed over the two at positions minus 3 and minus 6? Were they not significant enough? Cheers
Great observation. I believe you're right. I understood your explanation. What we could do in that situation is exit the trade and wait for a reentry. According to the example in the video we'd already be in a potential profit anyway. Does that make sense?
Hi sir,
When candle close above the moving average we are taking buy position right ? Can you kindly explain if you don't mind the other part? I mean the exit part? Because I didn't get that properly.
Absolutely, you've got the entry point right. When the candle closes above the moving average, it's typically seen as a bullish signal, and we consider taking a buy position.
As for the exit strategy, there are several possibilities. The one I discussed in the video was the opposite signal: exit the trade if the candle closes below the moving average after entering a long position. This might suggest that the trend is weakening or reversing.
There are other possibilities like trailing the stop, or deciding on specific target based on risk/reward ratio.
The WMA (30) is displaced 2 or no ?
Yes, I typically displace the WMA (30) by 2 for my own comfort and visual clarity. However, it's not mandatory to displace it. You can use it without displacement and it should work just as effectively. It's really up to your personal preference!
@@TechnicalAnalysisInstitute Ok, thank you 👍🏻👍🏻