A professional trader reveals the importance of having a second confirmation indicator to check the main one for better results. It’s easy to test and improves trading by reducing losses. Use two great tools that work together for the best outcome, rather than trying to make outdated ones work.

The Fifth Element: Revealing the Fifth Piece of Trading Algorithm
Confirmation Indicator: Center of Your System
Eliminating Losses to Multiply Earnings
Two Confirmation Indicators: The Right Way to Do it
Testing Indicators to Improve Results
Why You Need Two Confirmation Indicators
Categories of Trend Confirmation Indicators
The Magic of Confluence in Trading
Finding the Magic Combination of Indicators for Your System

The trading world is built on algorithms and strategies that work in tandem to give traders the best possible results. And the best traders are always on the hunt for the latest piece of the puzzle that can improve their system. In this video, the Fifth Element of a professional trading algorithm is revealed, and it’s going to make your trading a lot better.

Confirmation Indicator: Center of Your System

The confirmation indicator is the nucleus of your entire system; it’s where it all starts. All the other indicators of the algorithm work to eliminate losses that your confirmation indicator gives you, making it stronger and giving you the best entry points possible. To see real results, combine this with rock-solid money management and great trade psychology.

Eliminating Losses to Multiply Earnings

The goal is to win by not losing. Every time you can eliminate losses from your trades, you’ll make more money in the long run. The volume indicator of your system should do a great job of this, but adding a second confirmation indicator can eliminate even more losses without eliminating wins in the process.

Two Confirmation Indicators: The Right Way to Do It

Having a second confirmation indicator is critical, but there is a right and wrong way to do this. The best way to find the right confirmation indicator is to test them out and see how well it plays with your main confirmation indicator. The three categories of trend confirmation indicators are price movement, oscillators, and moving averages.

Testing Indicators to Improve Results

Incorporating a second confirmation indicator is relatively easy; the indicators you need may already be a part of your system. Plug them in and test them out to see how well they work with your main confirmation indicator. Over time, you can eliminate losses without eliminating wins, making it easier to multiply your earnings.

Why You Need Two Confirmation Indicators

Adding a second confirmation indicator is necessary because sometimes, your main confirmation indicator may be prone to giving false signals. Having another one there to check your original confirmation indicator eliminates even more losses, making your trades even more profitable.

Categories of Trend Confirmation Indicators

The three main categories of trend confirmation indicators are price movement, oscillators, and moving averages. Using a combination of these indicators can create a confluence that helps you make better trades. Instead of relying on old and outdated tools, find two great tools that work together to make your system even better.

The Magic of Confluence in Trading

The idea of confluence is often misunderstood in trading. Many traders think that using multiple indicators that don’t work well by themselves will magically work when used together. The real magic comes from finding two indicators that are great on their own and testing them to see how well they work together.

Finding the Magic Combination of Indicators for Your System

Incorporating a second confirmation indicator is easy, but finding the right one for your system may take some time. Test out different indicators and find the one that works best. Once you find that magic combination of indicators, your results will improve dramatically, making your trading more profitable.