Trading by Alex
The ONLY 2 Indicators You Need To Make +$3,945/Day Trading
AI Summary
Alex outlines a trading strategy that generated $1.6 million in four months, distinguishing between gross profit and loss, and highlighting a 5x recovery factor and over 1:2 profit factor. The speaker emphasizes a 70% success rate in short positions and notes specific currency symbols that are most profitable. The core of the strategy relies on two key indicators on TradingView: "No Gap Candlesticks" and a 50-period Exponential Moving Average (EMA).
The "No Gap Candlesticks" indicator fills price gaps on charts, providing a cleaner and potentially more accurate view of market movements by preventing misinterpretations caused by gaps (which are common, especially in volatile markets). The document gives specific instructions on how to properly implement this indicator by hiding native candlesticks first.
The second indicator, a 50 EMA, serves as an additional "confluence" to existing trading strategies. It helps gauge trade strength—whether a trade is stronger or weaker based on price interaction with the EMA. The speaker stresses that these indicators enhance an existing strategy by 15-20%, rather than being a complete strategy on their own. The document provides detailed setup instructions for both indicators within TradingView.
Transcript:
I have made $1.6 million…
I have made $1.6 million in the last four months of trading. And this is what it looks like. I have in gross profit $2.5 million and I just took a pretty big loss. So that's why my gross loss is about $894,000 and I have about $50,000 in swaps. The most important thing when it comes to this exact P&L right here is going to be this recovery factor because [music] I have a five recovery factor. So what I go into draw down I make back very aggressively and my profit factor is above a 1 to2. So you guys can tell here in my profit and loss where I have had a total of multiple millions of dollars in profits and losses. But what's really important is that I have a 70% success rate with short positions. Meaning that I am a better seller than a buyer. And many traders aren't even able to understand this and the power of this which leads them to be better at taking certain trades rather than other ones. And which symbols make me the most amount of money. So I trade many different currencies, but the ones [music] that tend to make me the most is going to be these symbols that you see right here. So I don't tend to typically rely on indicators, but I have two indicators that I am going to be sharing with you in this video. And one of them you mandatory need to have in your trading. No questions asked. It's just simply going to let you read the charts cleaner. So, let's get right into it. Now, before we actually get started, I want to give you guys a little bit of context behind indicators. For me, an indicator is a love and a hate relationship simply because when I go teach people this inside of my community or just in general, they take it for granted. And what the power of it really is and how much does it actually determine your trade. And I'm just going to be fully transparent. My indicators are simply an added confluence to the trade that I'm going to be taking. It does not determine my whole entire trade. [music] It just lets me know that the trade is now a bit stronger or a bit weaker if it is above or below this EMA. So, just want to give you guys a little bit of context when [music] you guys go actually execute this and learn how to use it. So, my goal in this video is to teach you how to use these indicators inside of the trade and the strategy that you are already using and it can improve a 15 to 20% to your actual trade. Without that, you can still take the trade, but it won't be as strong. So, this is an added confluence rather than a whole entire strategy. Let that be clear. Now, moving on to the actual trading view, which is where we're going to be analyzing the markets, and we're going to be using these indicators in place. Both of the indicators that I am going to be using, you've probably seen over here before at the top left corner. I'm going to be using the EMA and I'm going to be using the no gap candlesticks. So, first I want to start off with the no gap candlesticks. The no gap candlesticks is probably the most potential it's probably it's probably the most powerful indicator that the market can possibly give you because what it does is it fills the gaps. So, for example, right here, let me just remove the gaps in the markets right now. So, as you guys can see right here, this market, you can see these gaps right here. You can see these gaps right here. And you can see these gaps here, here. It's pretty much everywhere throughout the market and lately spec literally specifically lately with how difficult the markets have been moving with all of these. Excuse my alarm. I got to get ready to trade. But I'm going to do this video for you guys here live in the middle of the news events that is happening in the world right now. The markets will tend to open with these gaps all of the time. And these gaps throw traders off all of the time because traders are literally saying, "Oh, how do I trade these gap fills? Are they going to fill the gaps? Do I trade? Do I sell against the trend, fill the gaps? What do I count for filling these gaps? And it could mess up a trader. It could make it seem weird. And these gap fills happen literally everywhere throughout the chart. I can go to any market and there's going to be gaps. There's going to be imperfections in the markets. They're literally everywhere. And without you realizing, it just throws off your trading a bit because there, for example, here you could have had a bullish engulfing candlestick and you don't have it. here. You could have had a bearish engulfing candlestick and you don't have it and it's just a consistent issue because it's not showing you the market clearly. There's always an imperfection in the market and this can just simply throw off your trading as a whole. So, what the no gap candlestick indicator is is that it fills that gap for you with a proper candlestick. Now, the charts look much cleaner. So, let me actually show you how to add this first indicator. All you have to do is come here to the no indic uh to the indicated section on trading view and just simply type no gap indicator. So, oh, it's going to be no gap candles. I'm sorry. No gap candles. And you're simply going to favorite this one right here. As soon as you click this one, it's simply going to pop up over here. Now, when it pops up over here, it's probably going to pop up like this. and it's just going to automatically fill the candlesticks already. But you need to do one step which many traders fail to do without knowing is first of all hide it. After you hide it, you're going to realize that the markets are going to go back how they are. You want to make sure that you could rightclick your trading view screen, you go to settings, and then you uncclick the current markets. So, you're going to realize your charts are pretty much going to be naked. you're not going to have anything on the candlestick chart. Then you're going to show the no gap candlesticks and then it'll fill in the price. So if you do it the other way there, it's basically the no gap candlesticks over the current price and then there can be areas for example like right here how this should have been a small red candle and then it just it's over it's engulfing that candle and it might not look the best. There's areas where it will probably look a little bit choppy. For example, here you have this blue candle that ends off with a red candle. That's because this candle is simply just filling that gap in between here and it's just showing both of the candlesticks on top of each other. So, it's just best if you remove your current candlestick charts and then you just leave the no gap candles. It's basically the new way of you looking at the charts with this indicator. It works to the perfection. This is what I use every single day for the last year. here. This has changed my trading completely because I don't have to battle these gaps and just almost overlook it, right? I could I could always look at the market for what it is. This has not given me any issue whatsoever. Now, the next one that I use is the EMA, which is going to be this blue line that hovers over price on every single time frame. It's pretty much just following it on every single time frame. Now, the way I set up this EMA is pretty creative and it's pretty interesting. So, as you guys can tell, I currently have a 50 EMA. So, the length is 50, the source is closed, offset is zero, the type is nothing, length is 14, BB, whatever this is is two, and then it is on the [music] chart style, it's blue, and it's visible on every single time frame. So, for you to get this indicator, all you have to do is search up EMA. And when you search up the exponential moving average, just simply click on this one right here. [music] And as you can tell, it might not pop up exactly how mine is. So, we're going to see this EMA right here. We have to go to the settings and then we have to do the exact same inputs that I have on the other one. So, the length is 50. We click okay. And as you can tell that will automatically already hover it over my other indicator. Now I have to refresh see what the settings are on my indicator. So 50 close 0 142. We go to these settings going to be 50 close 042. There you go. So as you can tell, you can't really see it because obviously it's set up exactly the same as my other indicator. That's why it pops up. But if I put it on and remove remove it, you can see how the color changes from that price right there. So, we don't need to have two of the exact same indicators. So, I'm going to remove that one. And then that is how this EMA is set up. Now, I'm going to explain to you how both of these work together. And this 50 EMA is very significant to the trade because it is used as a dynamic level of support and resistance. So, whenever price is going up, for example, how this has been done here in the weekly, it's going to hold price up. Whenever price is going down, it's going to be very tight with the price down. Same exact thing with the daily. When price is going up, it's going to be very tight on price up. When price is going down, it's going to be very tight on price going down. When price is going up, when price shifts down, when price is going up, to me, this is one of the most accurate EMAs to every single time frame because it follows it very closely. And as you can tell here, whenever it tends to break through it, there is a massive move that happens in the opposite direction. Same exact thing to the upside. Whenever it breaks above, it has a massive move to the upside. Many people out there use EMA crossovers or they use a 200 EMA, 100 EMA, and people don't understand that those are decent, but for more of a swing position trader. These are traders that are going to be holding trades for weeks. I'm looking to hold a trade for one to three to four days and maybe seven days max. So the 50 EMA works very closely on every time frame and it is an added confluence on top of my strategy and the importance of both of these and how they both intertwine each other is the beauty of it. So I'm going to explain to you now how both of these indicators work together. So, let's get into our first example, which the EMA once again is an added confluence. And there's a couple of steps that need to be done before you actually use the EMA. Because think of the EMA almost as the whipped cream of a milkshake. Is a milkshake a milkshake without the whipped cream on top? Probably not. It's missing that, right? You look forward to drinking the milkshake because of the whipped cream, but you can also drink it without it. So, this is kind of what the EMA is. is the EMA completes the trade but it's not the whole entire trade. You can still trade without it. Right? So let's use for example AUD JPY. AUD JPY was in a trending market on the weekly time frame. So let me explain once again. The first thing that we always look for is the trend. This is the most important thing. This is for whatever type of strategy you're using. This is if you want to be a scalper, a day trader, a swing trader, position trader, a demo trader, live trader, whatever type of trader you want to be or type of trade you're going to take, you need to be trading with the trend. Plain and simple. If you're trading against the trend, you're going to be running into some very, very, very strong difficulties. So, the first thing we always look for is what is the trend doing in this market. Okay, so the trend in this market at one point was creating lower highs and lower lows. lower high, lower low, lower high, lower low. And then this market here shifted higher high, higher low, higher high, higher low, higher high. So very clearly the first thing is that this market is bullish on the weekly time frame. Now our goal with the trend is to have as many time frames in our favor, right? Because if we have the weekly time frame that is bullish and then we have the daily time frame that is bullish and then we have the 4hour time frame that is bullish. Well, it probably makes more sense to buy than to sell. So, we are now going to be interested in taking a buy position just based off of the trend. We're going to use these EMAs and these indicators to get us a very precise and good entry. But you need to first understand how to read the market. So weekly time frame is bullish. Cool. The fact that it's above the EMA is a plus, but is not where we're going to be using it at this point right now. Daily time frame. Okay, daily time frame. Are we bullish or bearish? So this market very strongly. We don't need to go this far back because we can obviously tell that the market is very bullish here. And this is a big mistake that I see a lot of traders make in the trading at the weekly time frame. They'll start off in 2024, for example, which is where we're over here, November 2024. And then we go out to the daily time frame and then they'll do the same thing. It's like you don't really have to start from this far anymore because this market has shifted bullish to bearish so many times. You can really just focus on what's going on right here. A lot of traders, they'll focus on price action like this on the daily time frame and they'll be starting up here. They're like, "Yeah, this and then this." And and I explain to them like, "Guys, you realize first of all how far this is away and how long ago this happened. It's more relevant if you focus on the more recent price because that's what's going to take the trade to this area. But you can't analyze all the way up here two years ago when we're way down here and there's so much more price action to the left. Right? So focusing on what matters, which is this area right here, you can tell that this market was indeed creating higher highs and higher lows. We have a higher high, higher low, higher high, higher low, higher high, and a higher low, and now potentially creating a higher high. So, this market on the daily time frame is also bullish. Great. Cool. Now, what's the 4hour doing? So, we have two time frames in sync. Our goal is to go down to the next time frame and determine what is this market doing. So at the time that we would have been interested in entering this trade which would have been right around this area over here. This market was actually bearish. So this market was creating higher high, higher low, higher high, higher low, higher high and then we shifted bearish. This market actually turned into a bearish market. Okay, fine. The time we're looking at the market is right around here. We only have two time frames in sync. Okay, not the best, but definitely not terrible. So, the 4hour time frame is bearish. So, we do have two consecutive time frames in sync that is bullish and one time frame that is bearish. I use my other time frames, the 2hour, the 1 hour, the 30 minute, and the 15-minut time frames for my entries. So, I don't consider those time frames for the trend. The 15-inut is going to shift from bullish to bearish every day multiple times. Same thing on the 30 minute and every two days on the 1 hour. The weekly and the daily take much longer to shift these time frames. So that's why they're more respected and we use that to understand the trend of the market. We're not going to determine the trend of the market on a 15-minute time frame. We will on the higher time frame because that's what's more respected. So the first thing we got to do is understand the trend and we understand that the majority of the trend is indeed bullish. Next is going to be AOI which is equal to area of interest or how other traders like to call it order block or how other trader like to call it supply and demand zone or how other traders like to call it support and resistance or how other traders like to call it buying or sell in zones. All of this, ladies and gentlemen, is the exact same This is an area of interest. It's an area where you're going to be interested in buying or selling price. You're going to wait for price to retrace back into that area for you to wait for something for you to enter the trade. That's why it's considered an area of interest. So, at the time of us analyzing this market, this market was very bullish. So, we're going to call this the higher high. And then this was the higher low. So this is the higher high of this market right here. This structure point and then this right here would be the higher low. We identify this as the area of interest. So at the time of us looking at this market right here, this would have been the area or we would have been interested in doing it right here. So this market was bullish. This I consider the market bullish or bearish based off of the structure of the market which has looked like this. It's not based off of the wicks. We notice this is all structure. Every single structure point is what determines the move. Break, retest, structure to structure. You notice here, break, retest. It's structure to structure. So this is the higher high. This is the higher low. We don't base if the market is bullish or bearish off of the wicks. The wicks is not a confirmed price. That is where it was uh a trail of price. The actual structure, which is where the body closes, where we consider it bullish or bearish. So as you can tell, this right here is an area of interest if you look left. And an area of interest is where you have three or more touches. You look left, you have one, two, three structure points. We can go back to the structure on the line chart and you can tell we have one, two, and three. And I'm sure if we look left, we have more. One, two, three, kind of four. And I'm sure if we look left, we have more. So we have about seven, eight touches from this area of interest. So, this right here is indeed a respected area of interest. Cool. Now, after us identifying that it's a respected area of interest on the weekly, we go down to the daily and we're going to double verify if that is entirely true. Switch back out to the line chart. And as you can tell, we have 1 2 3 4 5 6 7 8. And if we go more left, it's even more respected. Now obviously typically if it is respected on the higher time frame it's going to be respected on the next lower time frame which is great. Just want to make sure that they both intertwine perfectly. So we have a very respected area of interest support and resistance supply and demand order block potato. Now, after we understand that we're at a area of interest, then is when we go into our entry signal. And based off of this entry signal, one of the confirmations that we will be using is our trusty EMA. Now, for our entry signal, the most powerful thing is going to be the actual price action. So, price action will actually be what this exact candlestick is right here. What this exact candlestick is going to be right here. what this exact candlestick is right here. This price action is going to be the actual confirmation that you're going to be interested in entering this trade. So, for example, right here we have a break and retest of this area of interest. Our entry confirmation is going to be this bullish engulfing beautiful push up, but we are also above the EMA. That's the whipped cream on top. That's it. That's what the EMA is going to be used for is an it is an added confluence confluence to the trade. Exact same trade right here. We have a approach that came back to this area of interest. We have a bullish engulfing candlestick from this area of interest and we're rejecting the EMA. That is a double whipped cream on top with two cherries on top because we're happen to be rejecting the exact EMA as well with that entry signal confirmation. This exact entry right here, we have another retest of this area of interest. a very strong bullish pin bar rejection, which is great price action, letting you know that price is rejecting. And then we also have the perfect rejection from that EMA. That is a triple whipped cream on top, cherries and sprinkles, and a donut, right? I'm just getting creative here at this point. Like, this is just making the trade that much better. And this is just specifically for this daily time frame entry. If we go out to the weekly time frame, as you can tell that weekly wick happened to also reject that weekly EMA, that is triple whipped cream on top, 10 cherries, sprink everything that you can possibly think of. And we use this EMA exact same way as we go with the trend. It's going to be from the highest down. So for example, we have one point for having it on the weekly. So we have one weekly EMA tap. two, we have daily EMA tap, right? So, let me just do it like this. So, we have Yeah, I'm supposed to be trading right now, but it's okay doing this. So, we have one weekly EMA tap, two daily EMA tap. Let's see what the 4 hour is doing. We at the time of us being interested in this trade, we're actually below the 4 hour. So, we don't have the 4our EMA tap. So, right here, we do not add the 4 hour. For three, do we have the 2hour EMA tab? Yes or no? We don't. Do we have the 1 hour EMA tap all the way down here? We don't. Do we have the 30 minute EMA tap? We don't. Do we have the 15 EMA tap? And then we do right here because we broke above the EMA and then we pretty cleanly retested it. So, we have here 15 EMA. So we could only add the EMA as an added confluence three times basically because it's above these three time frames at the time of entering the trade. Now you can imagine the more time frames you have that price is above this EMA even better. But the main ones that are significant are going to be the weekly, the daily and the 4hour. Everything after that is not precisely needed. But if you want to wait for that extra confirmation of it breaking and retesting above, you could have totally done that. For example, here you could have totally waited for the 1 hour EMA to break and retest above it and it would have had a very clean, respected bullish engulfing from this area and then it would have came back, retested it again, retested it again, and then price would have continued going to the upside. As you can tell, look at all these multiple times that it came back to retest it, retest it, and it kept having a push to the upside. So, could you wait for these extra confirmations? Yes, it's an added confluence and it lets the trade be stronger. And if you don't feel comfortable with the trade at the moment, you're interested in taking it. But, as you can tell, price comes back, retests it, retests it, retests it multiple times. Every single time it has a push to the upside, let's say you missed this entry here for whatever reason, you can always continue to scale in based off of this. Now, here, typically, if it breaks below, you don't want to be interested in the trade. You always want to be interested in the trade when it retests above it. and then it has the push up just there alone. There's 10 different potential trades on the trade that you identified that has a clean trend and is [music] respecting a clean area of interest. Now, use the EMA to have these added entries and the more rejections and the more time frames you're above it, the better confirmations you're going [music] to have. The more confirmations, the better, but you can still take it with these confirmations. Just know that it's a bit of a high risk trade. Now, I really wanted to make this video to show you guys the power of the EMA, but I want you guys to really understand that the EMA is it really is the the last part of the position. It's like when you actually go bake something in the oven. You have to prepare something. You have to properly let it d. You probably have to season it. Do whatever you do before you baking something. And then you put it in the oven. So, like that's like really the last part. When it comes out of the oven, then you put the add-ons on top. it it it the EMA is not the whole entire process. There's no secret hack on having an EMA crossover when two EMAs, one goes above and one goes under that that's the perfect entry or if price is always above it, it's a perfect entry. If price is below it, it's always a perfect entry. That is not the case. What the EMA does, it just makes it a bit better of a trade and it gives you a bit more probability just because historically typically whenever we're above it, we tend to go up and typically whenever we're below it, we tend to [music] go down. but it does not complete the trade. It does not define if it's actually ready to [music] enter the position or even ready to exit the position. Now, to be clear, I the EMA is only used for entries. It is not used for take profits. I don't have a takerit based off of the EMA. I use price action to base my takeprofits. So, just if you guys enter the trade below the EMA on the lower time frame, your take-profit should never be an EMA, right? That's not a I've seen multiple traders make this mistake before. Like let's say they they want to I don't know for whatever reason buy below the EMA and then their take profit is the EMA. That's not the case at all, right? The EMA is only used for your actual entry when you're ready to be above it to enter or when you're ready to be below it to actually sell to the downside. It's very powerful that you know what you're best at. If you're better at selling or better at buying, how I just showed you with my track record earlier onto this video, because that lets you understand what you're better at. Because if for whatever reason you're only good at selling, for example, how I am, what you can do is you can flip your chart. Right click this section on Trading View, you invert it, and now you look at this market for a sell. Now, for me, this looks much more clear of a sell at the time of selling from this EMA than when it actually did of buying, for example. So, this is something that you you guys can just look at your P&L, look at your track record, and you're going to be able to understand based off of your trading as a whole. I just have a hundreds of little hacks just like this one. So now that you understand what I showed you is how to trade with these specific indicators and that it just takes you one step closer to actually becoming a profitable traders. But the actual indicator does not define the markets. Price action does, trend does, proper structure and that is what's going to lead the trade to go into the next spot. Not the indicator. The indicators are just there to help you identify the trend. If you want to be part of my community where I teach this to my traders every single week and I host live calls showing these traders these perfect trade setups, check out the link in description down below. It's my community where I literally share the markets that I'm interested in taking every single week and why I'm not interested in taking other trades. Because the reality of the situation when it comes to trading is that there is an abundance of opportunity, but not all of these opportunities come with good results. You need to make sure how you identify these different markets and select the winning ones and stick to them and learn how to avoid the losing ones. Hit that like and subscribe button. Hope to see you in that class. And set it forget boys. ▲