🔴 The MOTHER of All Indicators (Dangerously Effective.....)

uh welcome back to Trader DNA in last week's video we uncovered the game-changing secret behind the moving average indicator and how it works in the market but guess what today we're leveling up um I'm about to show you how to use the moving average indicator like a pro whether you're trading Forex crypto or stocks this isn't just any tool people this is the mother of all indicators it's incredibly versal and can be tailored for all types of trading scalping intraday trading you name it and listen if you master the strategy I'm dropping in today's video

and stick to the trading rules we'll cover you'll have an insanely powerful tool in Your Arsenal trust me if you stay focused and dedicated you've got what it takes to crush it let's jump in in this strategy you'll Master the four most crucial elements of trading with the moving average indicator one valid trending Market in the first step you'll learn how to ident identify the most promising markets to Monitor and enter at precisely the right time truly there's no better way to approach this two optimal entry timing you'll discover the best times to enter the

market moments that almost guarantee higher chances of profitability three strategic stop-loss placement this method will teach you the most effective way to place your stoploss ensuring you achieve an ideal risk to reward ratio for every position you open and four Target Target profit and exit strategy you're going insight into setting realistic profit targets and implementing the best exit strategies to maximize your gains by focusing on these four essential keys to trading with the moving average I'm confident that you'll find it much easier to analyze Market movements decide when to enter or exit trades and Implement

sound money management practices with disciplined application of these critical points which I'll thoroughly explain in this video you won't have to struggle with overly complex trading theories or confusing Market analyses anymore instead you'll have a clear straight forward approach to trading success first valid trending Market no matter what trading strategy you use your trades will only be profitable if your positions align with the market Trend it's that simple don't overthink it at the core all Traders are Trend followers your primary and most important task in trading is to identify Market where the trend is clear

strong and consistent this way when you enter the market you can maximize your potential profits relative to the risks you take in this first step I'm going to show you exactly how to identify the best markets to Monitor and enter at the right time after more than 10 years of experience in the trading world I can confidently say this is the most effective and straightforward method for finding potential markets that are worth entering when the opportunity arises and don't worry when it comes to timing that perfect entry we'll dive into that in step two for

now let's focus on mastering the process of spotting the right markets with strong readable Trends as I explained in last week's video identifying markets with strong Trends can be achieved by utilizing the slope of the moving average the slope provides us with a reliable indication of the trend strength and direction in an uptrend the moving average will slope upward when the trend is strong this slope becomes steep often approaching a 45° angle conversely in a weaker uptrend the slope is more gradual the same principle applies to downtrends a strong downtrend will feature a steep downward

sloping moving average close to a 45° angle while a weaker downtrend will show a gentler downward slope this information is invaluable because in strong Trends we can afford to be more assertive with our entries however when dealing with weaker Trends caution is key and trades should be approached with greater pair this is the foundational principle for analyzing Trend strength and it Remains the most valid method for market analysis any other analysis essentially derives from this basic principle in this strategy we leverage a combination of different moving average indicator settings as shown here to enhance our

ability to detect potential Trends the critical question then becomes um when do these combinations of moving average lines reveal the best market trends to Monitor and enter when a trading signal or the right timing presents itself as you can see on this chart when we temporarily remove the candlesticks or price chart the relationship between the moving average lines becomes clear if the green moving average lines are positioned below the black moving average line this strategy identifies the market as being in a strong bear condition The Wider the gap between these two types of moving averages

the stronger the ongoing bearish Trend and the good news about this scenario is that you can open a sell position on smaller time frames following a rally conversely if the green moving average lines are above the black moving average line this strategy recognizes the market as being in a strong bullish condition The Wider the gap between these two moving averages the stronger the bullish Trend in the Market in this case Traders can open a buy position on smaller time frames following a pullback that said um in this video I will not be covering multi-timeframe trading

because it could overco complicate your understanding of the core principles of this strategy however once you fully grasp the trading strategy I'm explaining here by the end of this video you'll find it incredibly easy to reply this method seamlessly to multi-timeframe trading as well to help you better understand the concept of a valid trending Market let me show you once again the formation of the moving average indicator lines on the chart here on this chart you can clearly see how the green moving average line is positioned below the black moving average line you can also

observe how the gap between the two lines expands and contracts and then expands again this space is crucial for our trading strategy you can see this formation here and also this formation here now when the green moving average line is above the black moving average line we analyze the chart the same way we would for a bearish market but with the opposite set of rules at this point I'm assuming that you fully understand the first key element of this strategy which is identifying a valid Trend in Market next I'll walk you through step two which

is optimal entry timing in this section you'll discover the best moments to enter the market times that almost guarantee a higher chance of profitability now let me show you the best timing to enter the market moments that almost guarantee higher profitability these optimal entry points occur right after a rally ends during a strong bearish Trend or after a pullback ends during a strong bullish Trend so what criteria Define rallies and pullbacks with the highest probability of the market continuing its established Trend the answer lies in the space between the Green moving average lines and the

black moving average line take a look at this example you can clearly see how the moving average lines slope Upward at a steep angle close to 45° Additionally you can observe how the space between the Green moving average lines and the black moving average line widens progressively this condition satisfies rule number one which means we now wait for rule number two to be fulfilled the formation of a high probability pullback a high probability pullback occurs when a bullet Trend experiences a correction causing the price to dip into the empty space between the Green moving average

lines and the black moving average line before resuming its upward movement when a bullish candle forms during this scenario uh and the gap between the Green moving average lines and the black moving average line remains intact it confirms the pullback as see in this example a clear sign that the bullish Trend will likely continue is when the blue moving average line moves above the green moving average lines at this point the most optimal time to enter the market has arrived and you can confidently open a buy position in a bearish trend as Illustrated in this

example you can clarely see how the moving average line slope downward at a steep angle Additionally the gap between the Green moving average lines and the black moving average line becomes progressively wider as I mentioned in the previous example this condition satisfies the first rule of our strategy which is identifying a valid trending Market with this Criterion that the next step is to wait for the Fulfillment of rule number two the formation of a high probability rally a high probability rally occurs when the bearish trend undergos a correction causing the price to temporarily rise into

the empty space between the Green moving average lines and the black moving average line before resuming its downward trajectory when a bearish candle forms in this scenario and the dep between the Green moving average lines and the black moving average line remains intact the rally is confirmed as demonstrated in this example a key indicator that the bearish trend will likely continue is when the blue moving average line moves below the green moving average lines at this point the market provides the most favorable opportunity for entry making it the ideal sign to open a sale position

with confidence the third step is deter ing the most advantageous stop-loss placement in this strategy there are three key areas you can consider for placing your stop loss the first is around the red moving average line the second is near the Black moving average line and the third is just above the nearest swing high or below the nearest swing low let me break down each option for you as this decision significantly impacts our money management strategy particularly in terms of risk reward ratio first placing the stop loss near the red moving average line in this

example the entry candle is a large bearish candle signaling a strong continuation of the bearish trend this suggests that the price is likely to drop rapidly however because the candle is so large the nearest swing High and the black moving average line are too far away to use as stop-loss levels in this situation the best stop-loss placement is near the red moving average line by doing so we maximize the potential reward relative to the risk achieving a better F risk reward ratio can have to placing the stop loss above the nearest swing high or the

black moving average line Second placing the stop loss near the nearest swing high or swing low for example when the entry candle is a strong bullish candle it signals a high probability of the bullish Trend continuing in this case I would place my stop loss just below the nearest swing low because it is slightly below the moving average line but still above the black moving average line however if the nearest swing low happens to be above the red moving average line I would place the stop loss just below the red moving average line one thing

I avoid is placing the stop loss below the black moving average line as this placement is too far negatively affecting the risk reward ratio third placing the stop loss near the Black moving average line as shown in this chart if the nearest SN high or swin low is too far from the entry point and at the same time the red moving average line is too close to the entry point the optimal stop-loss placement is around um the black moving average line in this scenario the stop loss is positions slightly above the black moving average line

to balance protection and risk reward efficiency by carefully evaluating these three stop-loss placements you can optimize your strategy to achieve both higher Prof profitability and effective risk management fourth setting Target profits and exit strategies how can you set realistic profit targets and implement the best exit strategies to maximize your gains this strategy involves three models of exit strategies the first one is to exit the trade when the profit has reached double the risk of your stop loss a risk reward ratio of 1.2 is the most effective in this strategy because it is both achievable and

highly beneficial in the long run the second exit strategy involves closing the trade when the price crosses the red line of the moving average this strategy can sometimes yield significant rewards though there are instances where Traders might exit the market with minimal profits the third exit strategy is a combination of the first and the second if you notice that the trend is still very strong and your profit Target if double the stop loss is likely to be reached you should switch to the second strategy this way you can maximize your gains based on the prevailing

market conditions here's a trading example to help you fully grasp this strategy step one involves identifying a strong bearish Trend which we can clearly see here the market then experiences a rally followed by the resumption of the bearish trend during this rally phase it's evident that the green moving average lines do not cross the black moving average line indicating that the strong bearish Trend which has been ongoing from the beginning is still in place we then open a cell position after the blue moving average line appears below the green moving average lines in this scenario

you can place your stop loss above the black moving average line or the nearest swing high as these areas are closely aligned for instance we place the stop loss above the nearest swing high with a Target profit of twice the stop loss the price then drops sharply suggesting the potential for a significant decline with this information as the price approaches the target profit using method one twice the stop loss we switch to method three for our exit strategy and we exit here this adjustment allows us to maximize our profit to more than twice the stop

loss in this case a similar situation occurs here we open a sell position once the blue moving average line appears below the green moving average lines in this condition you can set your stop loss above the black moving average line or the nearest swing High since these areas are closely aligned for example we place the stop loss above the black moving average line because the sell position candle is a strong bearish candle our first Target profit is twice the stop loss again similar to the first case the price drops sharply indicating a significant downward movement

using this information when the price nears the target profit of twice the stop loss we switch to method three for our exit strategy and exit here once again this approach proves successful as we maximize our profit to three times the stop loss in this second case all right guys this strategy is insanely easy to set up because it only uses moving averages you'll be working with the 34 period moving average the 21 period moving average and the six period mov average it's super straightforward but went if you want to use the exact settings I show

in this video I've got you covered I've included a template that you can easily upload to your chart it'll automatically plot all these indicators perfectly so you don't have to worry about a thing you can grab the download link in the description below and if you want to maximize the profitability of this strategy combine it with the order block strategy which is super hot right now I've already prepared a comprehensive video tutorial on order block trading and Analysis just click on this video to get a full understanding of how it works trust me you don't

want to miss this one I'll see you there [Music]