My Trading Journey
Learn about a top free trading indicator strategy that can maximize profits and improve accuracy when identifying trends and support/resistance levels. Use the Fischer and SD Central pivot range indicators in conjunction with other tools to cross-check signals and analyze trades more effectively. Backtesting with Trader Edge can provide an edge score for comparing different trading strategies. Examples show how to enter and exit buy and sell positions with stop loss and risk reward ratios. Always remember to conduct multiple analyses and never rely solely on indicators.
Game-Changing Top Free Trading Indicator Strategy: Skyrocket Your Profits
Introduction
Are you tired of inconsistent profits and unreliable indicators? In this article, we will take a step-by-step guide on how to set up a killer trading strategy on trading view. This is a game-changing top free trading indicator strategy that will help you skyrocket your profits. We will also share real-life examples to demonstrate its true power. However, please note that nothing in this article is financial advice, and it’s for informational purposes only.
Understanding Fischer Indicator
Firstly, we will search for the Fischer Indicator, which can help you identify trend reversals on the charts. It’s based on true moving averages and oversold/overbought areas, taking into account both short-term and long-term trends of the market. Using this indicator, you’ll be able to spot moments when the market is about to turn around and start moving in a new direction. This can be incredibly useful for traders who are looking to make quick profits by buying low and selling high or for those who are looking to hold onto their positions for a longer period of time.
Making Adjustments to the Indicator
To improve the accuracy of the Fischer Indicator, we will make a few adjustments to it. Under the input section, we will change the link from 9 to 10, the upper limit from 80 to 70, and the lower limit from 20 to 30. Next, under the Styles tab, we will unselect the middle level and update the upper and lower limit values to our new values that we used under the input section. By doing this, we’ll be using basic levels of the RSI or Relative Strength Index for overbought and oversold conditions. This indicator will become even more accurate in identifying moments when prices are either undervalued or overvalued.
Using Complementary Indicators
While the Fischer indicator is highly accurate, it’s important to remember that you shouldn’t rely solely on its signals in trading. It’s always a good idea to have multiple indicators and tools at your disposal to confirm your analysis and make more informed decisions. In this regard, we’d like to introduce you to another indicator that can complement and enhance our trading strategy even further.
Trader Edge – Sponsor of Today’s Video
Today’s video is sponsored by Trader Edge, a backtesting platform that uses advanced algorithms that outperform traditional methods like spreadsheets by three times. It provides you with an edge score that enables you to compare different trading strategies according to factors like profit factor, average winning and losing trades, and more. You can sign up for free on their website, and we’ve included a link in the description below.
Using SD Central Pivot Range Indicator
Next, navigate to the indicators tab and search for SD CPR. We are going to add the SD Central pivot range indicator to our chart. This indicator is incredibly useful for identifying relevant levels of resistance and support based on the CPR algorithm. The algorithm calculates these values daily, providing you with up-to-date information on key price levels that are likely to influence the market. By using this indicator, you’ll have a better understanding of where the market is likely to turn, and where prices are likely to be met with buying or selling pressure.
Making Adjustments to SD Central Pivot Range Indicator
To improve the accuracy of the SD Central Pivot Range Indicator, we will make a few changes to its inputs and styles. Firstly, we’ll change the number of daily CPR backs from 7 to 100. Next, we’ll change the value of the weekly CPR backs from 0 to 1. After that, we’ll change the monthly CPR backs from 0 to 3, and yearly CPR backs from 0 to 2. Finally, under the style option, we’ll use three lines of the daily and only the middle lines of the weekly, monthly, and yearly.
Detecting Profitable Trading Levels
Detecting the right levels of support and resistance is essential for profitable trading. It’s not enough to rely solely on buy and sell signals, no matter how accurate they may be. You need to have a solid understanding of when to enter and exit trades, and identifying key support and resistance levels is a big part of that.
Trade Example – Buy Side
Let’s take a closer look at a trade example. Firstly, we need to wait for the moving averages to cross on the Fischer indicator and produce a buy signal in the oversold area. Next, wait for the moving averages to cross over the oversold region and come back up again, meaning we would wait until the point where it has crossed back from oversold. You’ll also see that the price action has broken a major level illustrated by the SD CPR line. After this strong bullish candle showing momentum, once all the confluences are in place, we are going to enter our buy trade with a stop loss below the recent swing and aim for a one to two risk reward.
Trade Example – Sell Side
Let’s look at another trade example, this time on a different timeframe. Firstly, we are waiting for the price action to approach the SD CPR and form a rejection during that rejection away from the SD CPR, moving averages crossed in the oversold area and are giving us a buy signal. Wait until the moving averages cross back from the oversold area, enter your buy position with your stop loss below the recent swing. Aim for a one-to-two risk to reward.
Conclusion
To conclude, we hope you find this article helpful in setting up a killer trading strategy using the Fischer Indicator, SD CPR indicator, and complementary indicators. Remember that relying solely on one indicator is not a good idea and you should always use multiple indicators and cross-check their signals. Always ensure that you do your own analysis and test the strategy with a demo account before risking real money. Happy trading!
