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uh welcome back to Trader DNA in last
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week's video we uncovered the
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game-changing secret behind the moving
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average indicator and how it works in
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the market but guess what today we're
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leveling up um I'm about to show you how
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to use the moving average indicator like
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a pro whether you're trading Forex
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crypto or stocks this isn't just any
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tool people this is the mother of all
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indicators it's incredibly versal and
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can be tailored for all types of trading
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scalping intraday trading you name it
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and listen if you master the strategy
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I'm dropping in today's video and stick
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to the trading rules we'll cover you'll
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have an insanely powerful tool in Your
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Arsenal trust me if you stay focused and
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dedicated you've got what it takes to
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crush it let's jump
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in in this strategy you'll Master the
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four most crucial elements of trading
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with the moving average indicator one
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valid trending Market in the first step
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you'll learn how to ident identify the
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most promising markets to Monitor and
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enter at precisely the right time truly
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there's no better way to approach this
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two optimal entry timing you'll discover
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the best times to enter the market
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moments that almost guarantee higher
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chances of profitability three strategic
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stop-loss placement this method will
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teach you the most effective way to
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place your stoploss ensuring you achieve
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an ideal risk to reward ratio for every
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position you open and four Target Target
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profit and exit strategy you're going
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insight into setting realistic profit
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targets and implementing the best exit
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strategies to maximize your gains by
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focusing on these four essential keys to
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trading with the moving average I'm
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confident that you'll find it much
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easier to analyze Market movements
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decide when to enter or exit trades and
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Implement sound money management
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practices with disciplined application
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of these critical points which I'll
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thoroughly explain in this video you
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won't have to struggle with overly
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complex trading theories or confusing
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Market analyses anymore instead you'll
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have a clear straight forward approach
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to trading success first valid trending
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Market no matter what trading strategy
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you use your trades will only be
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profitable if your positions align with
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the market Trend it's that simple don't
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overthink it at the core all Traders are
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Trend followers your primary and most
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important task in trading is to identify
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Market where the trend is clear strong
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and consistent this way when you enter
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the market you can maximize your
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potential profits relative to the risks
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you take in this first step I'm going to
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show you exactly how to identify the
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best markets to Monitor and enter at the
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right time after more than 10 years of
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experience in the trading world I can
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confidently say this is the most
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effective and straightforward method for
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finding potential markets that are worth
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entering when the opportunity arises and
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don't worry when it comes to timing that
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perfect entry we'll dive into that in
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step two for now let's focus on
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mastering the process of spotting the
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right markets with strong readable
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Trends as I explained in last week's
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video identifying markets with strong
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Trends can be achieved by utilizing the
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slope of the moving
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average the slope provides us with a
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reliable indication of the trend
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strength and direction in an uptrend the
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moving average will slope upward when
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the trend is strong this slope becomes
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steep often approaching a 45° angle
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conversely in a weaker uptrend the slope
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is more gradual the same principle
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applies to downtrends a strong downtrend
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will feature a steep downward sloping
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moving average close to a 45° angle
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while a weaker downtrend will show a
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gentler downward slope this information
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is invaluable because in strong Trends
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we can afford to be more assertive with
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our entries however when dealing with
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weaker Trends caution is key and trades
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should be approached with greater pair
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this is the foundational principle for
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analyzing Trend strength and it Remains
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the most valid method for market
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analysis any other analysis essentially
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derives from this basic principle in
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this strategy we leverage a combination
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of different moving average indicator
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settings as shown here to enhance our
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ability to detect potential Trends the
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critical question then becomes um when
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do these combinations of moving average
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lines reveal the best market trends to
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Monitor and enter when a trading signal
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or the right timing presents itself as
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you can see on this chart when we
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temporarily remove the candlesticks or
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price chart the relationship between the
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moving average lines becomes clear if
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the green moving average lines are
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positioned below the black moving
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average line this strategy identifies
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the market as being in a strong bear
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condition The Wider the gap between
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these two types of moving averages the
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stronger the ongoing bearish Trend and
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the good news about this scenario is
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that you can open a sell position on
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smaller time frames following a rally
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conversely if the green moving average
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lines are above the black moving average
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line this strategy recognizes the market
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as being in a strong bullish condition
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The Wider the gap between these two
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moving averages the stronger the bullish
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Trend in the Market in this case Traders
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can open a buy position on smaller time
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frames following a pullback that said um
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in this video I will not be covering
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multi-timeframe trading because it could
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overco complicate your understanding of
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the core principles of this strategy
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however once you fully grasp the trading
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strategy I'm explaining here by the end
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of this video you'll find it incredibly
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easy to reply this method seamlessly to
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multi-timeframe trading as well to help
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you better understand the concept of a
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valid trending Market let me show you
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once again the formation of the moving
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average indicator lines on the chart
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here on this chart you can clearly see
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how the green moving average line is
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positioned below the black moving
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average line you can also observe how
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the gap between the two lines expands
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and contracts and then expands again
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this space is crucial for our trading
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strategy you can see this formation here
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and also this formation here now when
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the green moving average line is above
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the black moving average line we analyze
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the chart the same way we would for a
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bearish market but with the opposite set
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of rules at this point I'm assuming that
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you fully understand the first key
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element of this strategy which is
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identifying a valid Trend in Market next
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I'll walk you through step two which is
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optimal entry timing in this section
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you'll discover the best moments to
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enter the market times that almost
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guarantee a higher chance of
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profitability
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now let me show you the best timing to
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enter the market moments that almost
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guarantee higher
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profitability these optimal entry points
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occur right after a rally ends during a
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strong bearish Trend or after a pullback
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ends during a strong bullish Trend so
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what criteria Define rallies and
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pullbacks with the highest probability
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of the market continuing its established
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Trend the answer lies in the space
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between the Green moving average lines
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and the black moving average line
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take a look at this example you can
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clearly see how the moving average lines
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slope Upward at a steep angle close to
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45° Additionally you can observe how the
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space between the Green moving average
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lines and the black moving average line
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widens
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progressively this condition satisfies
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rule number one which means we now wait
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for rule number two to be fulfilled the
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formation of a high probability pullback
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a high probability pullback occurs when
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a bullet Trend experiences a correction
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causing the price to dip into the empty
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space between the Green moving average
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lines and the black moving average line
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before resuming its upward movement when
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a bullish candle forms during this
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scenario uh and the gap between the
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Green moving average lines and the black
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moving average line remains intact it
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confirms the pullback as see in this
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example a clear sign that the bullish
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Trend will likely continue is when the
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blue moving average line moves above the
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green moving average lines at this point
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the most optimal time to enter the
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market has arrived and you can
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confidently open a buy position in a
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bearish trend as Illustrated in this
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example you can clarely see how the
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moving average line slope downward at a
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steep angle Additionally the gap between
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the Green moving average lines and the
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black moving average line becomes
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progressively wider as I mentioned in
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the previous example this condition
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satisfies the first rule of our strategy
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which is identifying a valid trending
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Market with this Criterion that the next
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step is to wait for the Fulfillment of
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rule number two the formation of a high
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probability rally a high probability
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rally occurs when the bearish trend
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undergos a correction causing the price
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to temporarily rise into the empty space
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between the Green moving average lines
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and the black moving average line before
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resuming its downward trajectory when a
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bearish candle forms in this scenario
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and the dep between the Green moving
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average lines and the black moving
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average line remains intact the rally is
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confirmed as demonstrated in this
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example a key indicator that the bearish
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trend will likely continue is when the
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blue moving average line moves below the
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green moving average lines at this point
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the market provides the most favorable
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opportunity for entry making it the
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ideal sign to open a sale position with
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confidence the third step is deter ing
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the most advantageous stop-loss
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placement in this strategy there are
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three key areas you can consider for
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placing your stop loss the first is
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around the red moving average line the
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second is near the Black moving average
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line and the third is just above the
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nearest swing high or below the nearest
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swing low let me break down each option
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for you as this decision significantly
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impacts our money management strategy
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particularly in terms of risk reward
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ratio first placing the stop loss near
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the red moving average line in this
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example the entry candle is a large
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bearish candle signaling a strong
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continuation of the bearish trend this
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suggests that the price is likely to
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drop rapidly however because the candle
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is so large the nearest swing High and
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the black moving average line are too
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far away to use as stop-loss levels in
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this situation the best stop-loss
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placement is near the red moving average
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line by doing so we maximize the
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potential reward relative to the risk
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achieving a better F risk reward ratio
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can have to placing the stop loss above
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the nearest swing high or the black
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moving average
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line Second placing the stop loss near
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the nearest swing high or swing low for
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example when the entry candle is a
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strong bullish candle it signals a high
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probability of the bullish Trend
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continuing in this case I would place my
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stop loss just below the nearest swing
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low because it is slightly below the
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moving average line but still above the
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black moving average line however if the
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nearest swing low happens to be above
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the red moving average line I would
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place the stop loss just below the red
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moving average line one thing I avoid is
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placing the stop loss below the black
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moving average line as this placement is
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too far negatively affecting the risk
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reward
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ratio third placing the stop loss near
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the Black moving average line as shown
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in this chart if the nearest SN high or
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swin low is too far from the entry point
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and at the same time the red moving
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average line is too close to the entry
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point the optimal stop-loss placement is
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around um the black moving average line
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in this scenario the stop loss is
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positions slightly above the black
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moving average line to balance
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protection and risk reward efficiency by
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carefully evaluating these three
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stop-loss placements you can optimize
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your strategy to achieve both higher
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Prof profitability and effective risk
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management fourth setting Target profits
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and exit
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strategies how can you set realistic
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profit targets and implement the best
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exit strategies to maximize your gains
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this strategy involves three models of
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exit strategies the first one is to exit
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the trade when the profit has reached
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double the risk of your stop loss a risk
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reward ratio of 1.2 is the most
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effective in this strategy because it is
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both achievable and highly beneficial in
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the long
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run the second exit strategy involves
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closing the trade when the price crosses
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the red line of the moving average this
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strategy can sometimes yield significant
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rewards though there are instances where
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Traders might exit the market with
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minimal profits the third exit strategy
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is a combination of the first and the
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second if you notice that the trend is
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still very strong and your profit Target
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if double the stop loss is likely to be
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reached you should switch to the second
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strategy
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this way you can maximize your gains
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based on the prevailing market
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conditions here's a trading example to
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help you fully grasp this strategy step
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one involves identifying a strong
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bearish Trend which we can clearly see
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here the market then experiences a rally
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followed by the resumption of the
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bearish trend during this rally phase
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it's evident that the green moving
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average lines do not cross the black
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moving average line indicating that the
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strong bearish Trend which has been
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ongoing from the beginning is still in
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place we then open a cell position after
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the blue moving average line appears
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below the green moving average lines in
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this scenario you can place your stop
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loss above the black moving average line
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or the nearest swing high as these areas
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are closely aligned for instance we
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place the stop loss above the nearest
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swing high with a Target profit of twice
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the stop loss the price then drops
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sharply suggesting the potential for a
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significant decline with this
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information as the price approaches the
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target profit using method one twice the
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stop loss we switch to method three for
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our exit strategy and we exit here this
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adjustment allows us to maximize our
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profit to more than twice the stop loss
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in this case a similar situation occurs
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here we open a sell position once the
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blue moving average line appears below
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the green moving average lines
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in this condition you can set your stop
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loss above the black moving average line
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or the nearest swing High since these
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areas are closely aligned for example we
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place the stop loss above the black
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moving average line because the sell
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position candle is a strong bearish
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candle our first Target profit is twice
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the stop loss again similar to the first
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case the price drops sharply indicating
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a significant downward movement using
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this information when the price nears
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the target profit of twice the stop loss
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we switch to method three for our exit
00:15:36
strategy and exit here once again this
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approach proves successful as we
00:15:40
maximize our profit to three times the
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stop loss in this second case all right
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guys this strategy is insanely easy to
00:15:50
set up because it only uses moving
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averages you'll be working with the 34
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period moving average the 21 period
00:15:56
moving average and the six period mov
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average it's super straightforward but
00:16:02
went if you want to use the exact
00:16:04
settings I show in this video I've got
00:16:06
you covered I've included a template
00:16:08
that you can easily upload to your chart
00:16:11
it'll automatically plot all these
00:16:13
indicators perfectly so you don't have
00:16:15
to worry about a thing you can grab the
00:16:17
download link in the description below
00:16:20
and if you want to maximize the
00:16:22
profitability of this strategy combine
00:16:25
it with the order block strategy which
00:16:26
is super hot right now I've already
00:16:29
prepared a comprehensive video tutorial
00:16:32
on order block trading and Analysis just
00:16:35
click on this video to get a full
00:16:37
understanding of how it works trust me
00:16:39
you don't want to miss this one I'll see
00:16:41
you there
00:16:45
[Music]
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