The video discusses using indicators like moving averages and candlestick patterns to determine trends in trading. The speaker also mentions upcoming uploads.

Why “Foreign” is Wrong in Trading

Trading in the financial markets is a challenging and exciting endeavor. It requires a combination of skills, knowledge, and discipline to succeed. One of the essential aspects of trading is the ability to analyze and interpret price movements to make informed decisions. However, some traders rely on unreliable methods that can lead to significant losses in their accounts. One of these methods is the use of “Foreign” indicators in trading.

What are “Foreign” Indicators?

“Foreign” indicators refer to trading indicators that are not based on price action or market data. Instead, they are based on subjective rules or beliefs that have no basis in reality. Examples of “Foreign” indicators are astrology, Feng Shui, numerology, and other esoteric practices. These indicators rely on superstition and wishful thinking, rather than facts and evidence.

Why are “Foreign” Indicators Wrong?

Using “Foreign” indicators in trading is wrong for several reasons. First, they have no scientific or logical basis. They are based on myths and legends that have no proof of validity. Second, they are not reliable, and their accuracy is questionable. Traders who use “Foreign” indicators are betting on chance, rather than probability. Third, they do not consider the market’s dynamics, which are subject to many factors such as economic news, geopolitical events, and market sentiments. Fourth, they can lead traders into making emotional decisions, such as fear or greed, rather than rational ones based on sound analysis.

Moving Averages as an Alternative to “Foreign” Indicators

Moving averages are one of the most widely used indicators in trading, and for good reasons. Moving averages are based on price action, and they provide objective and reliable signals of market trends. Moving averages smooth out price fluctuations and help traders identify the direction of the market. They are easy to use, understand, and apply, and they work in various time frames and markets.

The Benefits of Moving Averages

Moving averages offer several benefits to traders. First, they provide a clear and objective view of the market’s trend. A trend can be bullish, bearish, or sideways, and moving averages help traders identify it. Second, they can act as support or resistance levels, depending on where the price is in relation to the moving averages. Third, they can act as entry or exit signals, depending on the trader’s strategy. For example, a trader may use a crossover of two moving averages as a signal to enter or exit a position. Fourth, they can be customized to suit the trader’s style and preferences. Moving averages can be calculated based on different time frames, such as 5, 10, 20, or 50 days, and they can be applied to different types of prices, such as closing prices, opening prices, or highs and lows.

Using Moving Averages in Trading

To use moving averages in trading, traders need to follow a few simple steps. First, they need to choose a time frame and a type of price that suit their strategy. For example, a swing trader may use a 20-day moving average based on closing prices to identify a trend. Second, they need to plot the moving average on the chart and observe it for signals. For example, a bullish trend may be identified if the price is above the moving average, and a bearish trend may be identified if the price is below it. Third, they need to use other indicators or tools to confirm the signal before entering or exiting a position.

Candlestick Patterns as a Complement to Moving Averages

Candlestick patterns are another popular tool used by traders to analyze price action. Candlestick patterns are graphical representations of market activity, and they provide valuable information about the market’s sentiment and direction. Candlestick patterns can be bullish, bearish, or neutral, and they can occur in different time frames and markets. Some of the most popular candlestick patterns are Doji, Hammer, Shooting Star, Engulfing, Harami, and Piercing.

Using Candlestick Patterns in Trading

To use candlestick patterns in trading, traders need to follow a few simple steps. First, they need to identify the pattern on the chart and determine its significance. For example, a bullish Engulfing pattern may signal a reversal of a bearish trend, while a bearish Shooting Star pattern may signal a continuation of a bearish trend. Second, they need to confirm the pattern with other indicators or tools, such as moving averages or support and resistance levels. Finally, they need to use the pattern as a signal to enter or exit a position, depending on their strategy.

Conclusion

Trading is a challenging and rewarding activity that requires skill, knowledge, and discipline. Traders who rely on unreliable methods, such as “Foreign” indicators, are risking their accounts and their credibility. Instead, they should use objective and reliable tools, such as moving averages and candlestick patterns, to make informed decisions. These tools are based on price action and market data, and they provide clear and objective signals of the market’s trend and direction. By using these tools, traders can enhance their performance and increase their profits while minimizing their risks.