Joseph Benson
A YouTuber introduces TradingView.com and demonstrates how to use the Hitman Heat Map background to make money in financial markets. They explain the importance of volume and share their personal trading strategy.
How to Make Money in Financial Markets with TradingView
Introduction
TradingView is a platform that allows traders to access real-time data, charting, technical analysis, and trade ideas for various financial markets. In this video, we will explore how to use TradingView to make money in the financial market.
The Importance of Volume
Volume is one of the crucial parameters that traders must consider while analyzing the financial market. It is the number of shares or contracts that are traded during a given period. In general, high volume signals more significant liquidity and momentum, which is essential for traders looking to make money in the financial market.
Using the Hitman Indicator
The Hitman indicator, also known as the heat map background, is an excellent tool that traders can use to analyze the volume in the market. The Hitman indicator uses various colors to represent the volume levels in the market. The red color represents high volume, orange stands for medium volume, and yellow represents normal volume.
Setting Up the Hitman Indicator
Setting up the Hitman indicator on TradingView is relatively straightforward and requires only a few steps. First, traders need to click on the “Product” tab and select “Super Chat.” Second, traders should customize the indicator’s settings to align with their trading style. In the video, the speaker recommends setting the extra-high volume threshold to 3, high volume pressure to 1.5, median volume pressure to 0.5, and normal volume thread to -0.5. Finally, traders should assign specific colors to different Hitman indicator levels to distinguish them effectively.
Using Moving Averages
Moving averages are also critical technical indicators that traders should use in their analysis. Two types of moving averages are commonly used, namely the simple moving average (SMA) and the exponential moving average (EMA). The SMA calculates the average price over a specified period, while the EMA places more weight on the recent prices.
Setting Up the Moving Averages
To effectively use the moving averages, traders must correctly set them up on TradingView. The SMA on TradingView has a customizable period that the speaker sets at 60. The EMA, on the other hand, has a period of 8 and a length of 5. Traders should ensure that they correctly identify the lines to facilitate effective analysis.
Executing the Trade
Once traders have effectively set up the Hitman indicator and moving averages, they can start analyzing the market. Traders should look out for sell signals that indicate the market is about to experience a bearish trend. These signals include the HTML lining seen below the black line and a momentum candle crossing and closing below the EMA line. On the other hand, buy signals signify the market is about to experience a bullish trend. Traders should wait for a yellow candle to cross and close above the EMA line before taking a shot.
Conclusion
TradingView is an excellent platform for traders to analyze and make money in the financial market. Traders should always remember to use critical technical indicators such as volume and moving averages to make informed trading decisions. By following the steps outlined in this video, traders can be well on their way to profitable trading.
