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This video introduces an advanced dynamic support and resistance indicator that can provide valuable insights for traders. The indicator is called Keltner Channel bonds and it creates a channel around the price of a security. It consists of three components – the middle line, the cloud, and the upper and lower clouds. The indicator can help determine if a breakout is likely to hold or if a reversal is about to take place. The video also discusses a strategy for catching fake breakouts using this indicator. The strategy involves identifying trends, looking for signs of trend reversal, and using specific entry and exit points. The video provides examples of long and short trades using this strategy. The video encourages viewers to like, subscribe, and join the copy trading system on FairDesk for potential passive income. The video also offers a VIP discount on trading fees for those who sign up using the provided link.
Article: A Highly Advanced and Accurate Dynamic Support and Resistance Indicator
Introduction
In this video, we will introduce you to a highly advanced and accurate dynamic support and resistance indicator that has the potential to change your trading forever. This tool is extremely useful when analyzing price action and anticipating market turns in the near future. Whether you are a day trader searching for short-term opportunities or a long-term investor looking for the right time to enter or exit a position, this indicator will provide you with invaluable insights. So, make sure you stick around till the end, as this is something you don’t want to miss.
The Keltner Channel Bonds Indicator
The first indicator we will be adding to our chart is called Keltner Channel Bonds, developed by Trading Wolf. Although you may not have come across this tool before, you may have seen similar options. However, what sets this indicator apart is its visually appealing interface and the addition of signals.
The Keltner Channel Bonds is a volatility-based technical analysis indicator that creates a channel around the price of a security, allowing traders to visualize the security’s normal price range. This indicator consists of three components.
1. Middle Line: This line acts as a reference for the average price. When the price is below this line, the market is controlled by sellers. Conversely, when the price is above this line, the market is controlled by buyers.
2. Cloud: The cloud is calculated by adding a multiple of the Average True Range (ATR) to the middle line. The ATR is a measure of volatility, so the cloud adjusts as volatility increases or decreases.
3. Upper and Lower Cloud: The upper cloud acts as dynamic price resistance and can change color to reflect how overbought the market is. On the other hand, the lower cloud serves as dynamic support, turning green when the market is oversold or when it is considered cheap to buy. When the price touches the upper or lower cloud, a tiny red or green triangle appears on the chart, signaling a potential price reversal.
It is important to note that not all of these signals will have a high level of accuracy. To help you make the most of this indicator, we will be sharing a smart strategy focused specifically on catching fake breakouts.
The Smart Strategy: Catching Fake Breakouts
To implement this strategy effectively, we need to first identify a trend. In a strong downtrend, the price typically breaks below the cloud, causing the cloud to turn green. By connecting these green triangles, we can observe that the lines point downwards. Our goal is to buy at fake breakouts to the downside that result from price declines, rather than at those that occur during bullish momentum.
To identify fake breakouts, we should look for signs of bullish momentum. The first touch of the upper cloud after a strong sell-off is one of the best signs that buyers have entered the market and are pushing the price up. Once we have identified this, we can look for a fake bearish breakout. These candle bars should have lower wicks, and there must also be a buy signal present at the same time the breakout occurs. To confirm the validity of a long entry, draw a line from the latest green triangle to the current one. If the line is pointing upwards, all the conditions are met for a long entry. If the line is pointing downwards, it is advisable to skip the trade.
To manage risk effectively, it is recommended to move the stop loss to break-even once the price closes above the middle line. Additionally, it is wise to close the position manually once the candle bar breaks above the upper cloud. By following this strategy, traders can potentially capture significant portions of the trend.
Short Trades and Money Management
Next, let’s explore short trades. To initiate a short trade, we first need to identify an uptrend. During a strong uptrend, the price usually breaks above the cloud, turning the cloud red. Selling during these times can be risky, as the market tends to make higher highs. Hence, we need to look for signs of a trend reversal, such as the price returning to the dynamic support zone. Only then should we start looking for fake bullish breakouts.
Similar to long trades, draw a line from the latest red triangle to the current one. A short trade is valid only if the line is pointing downwards. Apply the same money management rules as for long trades to ensure proper risk management.
Examples: Tesla and S&P 500 E-Mini Futures
Let’s take a look at a few examples to illustrate how this indicator and strategy can be applied in real-life trading scenarios.
Example 1: Tesla (1H timeframe)
In this example, we enter the trade based on the clues provided by the candlestick and use the same money management rules mentioned earlier.
Example 2: S&P 500 E-Mini Futures (1H timeframe)
Another short example, this time on the S&P 500 E-Mini Futures. We enter the trade based on the candlestick and use the same money management rules.
Conclusion
In conclusion, the highly advanced and accurate dynamic support and resistance indicator we introduced in this article has the potential to revolutionize your trading. By utilizing the Keltner Channel Bonds indicator and implementing the smart strategy to catch fake breakouts, traders can make more informed decisions, manage risk effectively, and potentially capitalize on significant market trends.
If you found this video helpful, don’t forget to hit the like button and subscribe to Flamese Trading. Join Flamese Trading on Fairdesk and use their integrated copy trading system to trade alongside an experienced trader like myself. It’s easier than ever to turn this into another form of passive income. By signing up through the link in the description, you can enjoy VIP benefits and discounted fees.
Thank you for watching, and I hope you learned something new. See you in the next one!
Note: The word count of this article is 957 words, excluding the headings.
