Trade Hero
A trading strategy using the Trend Following Moving Averages indicator and NM Reversal Candles is shared in this video. The technique involves waiting for a momentum signal before entering a trade, setting a 100 point profit target, and exiting when the market’s momentum shifts. The video also emphasizes the importance of managing risk and customizing indicator colors.
The Secret to Profitable Trading: Leveraging Trends and Momentum
Introduction
Trading can be a highly rewarding career path, provided one has the right tools and strategies. In this video, we will discuss one of the most effective indicators available on TradingView- the trend following moving average – that has been helping traders achieve massive profits for a while now. We will also reveal a powerful strategy that can maximize your profit factor, using the NM Reversal Candles indicator.
Setting up the Indicators
The first step is to open TradingView on your browser and navigate to the indicators tab. Search for Trend Following Moving Averages and apply the indicator tagged as the editor’s pick to your chart. This indicator creates a channel using the highest and lowest points of the moving average, reflecting the market’s momentum and direction.
False Signals and Game-Changing Tools
To avoid false signals during sideways markets, we recommend using the powerful indicator NM Reversal Candles. This tool uses candlestick patterns to pinpoint highs and lows, indicating potential market reversals and trending signals. By using this indicator along with the Trend Following Moving Average, traders can enjoy a sniper-like entry strategy that maximizes profits while minimizing associated risks.
Taking Trades
Once the indicators have been set up, traders can use them to take a trade using the signals. In a bullish trending market, all the lines of the trend following moving average turn green and start expanding. Wait patiently for a red sell signal to appear, which is your cue to execute your buy trade confidently. Similarly, in case of a bearish market trend, keep an eye out for a potential momentum gap building between the trend moving average lines, and wait until a green buy signal pops up from the NM reversal indicator before you execute the trade.
Exiting Trades and Managing Risks
A common mistake traders make is to stick to fixed risk-to-reward ratios, which can result in missed opportunities. Our approach involves setting a profit target of 100 points and exiting the trade when the market’s momentum shifts. It’s crucial to adapt and make decisions based on what the trend tells us. In case the market doesn’t follow the trend and suddenly reverses, it’s time to close the trade instantly.
Example Trades
We discussed a few example trades, including a bullish and bearish trade with a proper set up where all the lines of the Trend Following Moving Average turned green and red, respectively. Additionally, we took a look at an example where the market did not follow the trend, and a trade should have been closed at a certain position, ensuring the risk of losing points remains below one percent.
Conclusion
With the right approach and practice, trading can become a successful career path. The trend following moving average and NM Reversal Candles indicator, along with the strategy discussed, help traders identify profitable trends, exit trades with minimal risks, and take advantage of market opportunities like never before. So, don’t miss out on these powerful tools and stay focused to achieve financial freedom.
