A video discussing confirmation indicators for trading on lower and higher time frames, including the Trend Meter and Donchian Trend Ribbon. Adding these indicators to a simple moving average or super trend strategy can increase profitability and prevent false breakouts. A sponsor, C-e-x.io, is mentioned and a staking program is highlighted. The EFMUS System indicator is also discussed.

Indicators to Use to Avoid False Breakouts and Increase Trading Confidence

Introduction: The Problem of False Breakouts

Every trader has experienced the frustration of entering a trade, only to have it turn out to be a false breakout. False breakouts occur when a chart appears to be developing a trend, but then changes direction, resulting in losses instead of profits. False breakouts can be devastating to a trader’s confidence, as well as to their bottom line.

Fortunately, there are indicators available that can help traders avoid false breakouts, as well as provide confirmation on trades. These indicators can improve trading strategies, increase winrates, and change the way a trader approaches trading. In this article, we will look at some of the best indicators available for both shorter and longer timeframes.

Indicator 1: Trend Meter

The first indicator we will look at is the Trend Meter. This indicator is widely used by traders and is known for its effectiveness. The Trend Meter is easy to use and provides valuable confirmation on trades. To add it to your chart, go to Tradingview, click on the indicators tab, and type in “Trend Meter”.

The Trend Meter is made up of several dots and lines. Every one of these dots and lines must be green for a signal to be strong. Each dot or line represents a specific indicator. When it is green, it is giving a bullish signal. When it is red, it is giving a bearish signal. The Trend Meter works on all timeframes, but it is most effective on larger timeframes like the 1 hour or daily.

The Trend Meter can be added to any existing trading strategy to improve it. It can help to prevent false breakouts by confirming that a signal is strong before entering a trade.

Indicator 2: Donchian Trend Ribbon

The Donchian Trend Ribbon is one of the author’s favorite indicators. It is straightforward and provides a lot of value. To add it to your chart, go to the indicators tab and type in “Donchian Trend Ribbon”.

When the bars are green, you should be buying. When the bars are red, you should be selling. The Donchian Trend Ribbon works on all timeframes, but it performs better on higher timeframes.

The Donchian Trend Ribbon can be used to filter out trades on shorter timeframes like the 1 minute or 5 minute. It can also be used on the hourly or daily timeframe. This indicator can be incorporated into any trading strategy.

Indicator 3: EFMUS System

The EFMUS System is made up of three different indicators that all perform the same function. To add it to your chart, go to the indicators tab and type in “EFMUS System”.

The EFMUS System consists of multiple rows of rectangles. Each rectangle represents a different indicator. This specific indicator allows for up to ten different indicators to be added, including EMA crosses, RSI, and more.

Conclusion: Using Indicators to Improve Trading Strategies

False breakouts can be discouraging for traders, but there are indicators available to help prevent them. The Trend Meter, Donchian Trend Ribbon, and EFMUS System are all effective indicators that can be added to existing trading strategies.

By incorporating these indicators, traders can increase their confidence when entering trades, decrease the number of false signals, and improve their overall performance. Remember, all strategies and indicators should be tested thoroughly before being implemented in a live trading environment.