HOW TO TRADE LIKE THEM - TOP FIVE INDICATOR
Hello traders. I want us to become better price action traders.
And one of the best indicators to help traders prefect their analysis skills is the linear regression. NOW A before you disagree let me explain and unlock the power of this indicator. As it can tell you more about price than any other indicator you just have to know how to use it correctly. And when you use it like how I will explain you’ll see over time your price action game will Increase
So firstly let’s not use it as a signal as this way is the typical approach to most indicators and traders rely on the regression to make trading decisions.
Now let’s understand what the regression is and how we can use this for price action and you’ll see that this is by far top five single indicators.
So the regression (shortcut) is the average of the slope of price. So it takes the slope from price at point a to point b and average and this gives us a projector of price direction.
Now I want you to not focus on the direction of the channel but how price behaves within the channel and within the positive and negative slopes and this will give you all the answer you’ll need to make a great trading decision.
Now . There’s a median line which is very important I want you to see it as the line that divides price into positive and negative axis.
See this line as where price go to for help. This line we expect price to find strength at in the trend. Look at it as a spring and if you was price you’ll want to go there and use the spring to propel you in your direction.
Now if we see price consolidation at this line or trailing at . What do you think this mean? Yes price is about to breakout.
Now these are the questions we want to ask yourself while we look at price in the regression. So from the pic we are in an uptrend.
The regression can tell us the strength of the trend.
Check it
So in an uptrend we want to see price more in the positive regression and less time in the negative.
We want to see how price behaves when it get to the upper limit on the positive regression.
We want to ask do it diverge when it hit the outer line or do it just pullback either way we want to see how far is the other price swings at the top are from each other.
We look at how often price pullback to the median line or do it pullback to a space within its regression and if it goes to the median line do it bounce off it will high volume.? How often is price going back to the median line.
If we are in the positive regression in an uptrend we want to see nice ranging candle width . Right? See we must examine price in its regression for flaws and or strength cuz if we are in a positive regression during an uptrend I want to see positive things. Get it? Or if I see weakness then I’ll be look for a possible sale get that,?
Now during a trend we expect price to go in the other regression as this is needed to maintain the health of a trend and when this happen we can get more info about the trend. As how fast and strong price pullback up to the trending regression. Do it get rejected from the median? How do it recover from this? How long it takes to get back to the median line.did it get rejected again.? Did it diverge there is there a candlestick pattern of rejection there? Or do price rip right through the median line?
These are just a few questions the regression can tell us about price if we stop looking for a easy go to answer and try to understand what price is saying. And I assure you if you practice with this in this manner you’ll see you price action skills grow. Cuz let’s get to the core price action is just looking at price structure and understanding what’s going on
HOW TO TRADE LIKE THEM-
And one of the best indicators to help traders prefect their analysis skills is the linear regression. NOW A before you disagree let me explain and unlock the power of this indicator. As it can tell you more about price than any other indicator you just have to know how to use it correctly. And when you use it like how I will explain you’ll see over time your price action game will Increase
So firstly let’s not use it as a signal as this way is the typical approach to most indicators and traders rely on the regression to make trading decisions.
Now let’s understand what the regression is and how we can use this for price action and you’ll see that this is by far top five single indicators.
So the regression (shortcut) is the average of the slope of price. So it takes the slope from price at point a to point b and average and this gives us a projector of price direction.
Now I want you to not focus on the direction of the channel but how price behaves within the channel and within the positive and negative slopes and this will give you all the answer you’ll need to make a great trading decision.
Now . There’s a median line which is very important I want you to see it as the line that divides price into positive and negative axis.
See this line as where price go to for help. This line we expect price to find strength at in the trend. Look at it as a spring and if you was price you’ll want to go there and use the spring to propel you in your direction.
Now if we see price consolidation at this line or trailing at . What do you think this mean? Yes price is about to breakout.
Now these are the questions we want to ask yourself while we look at price in the regression. So from the pic we are in an uptrend.
The regression can tell us the strength of the trend.
Check it
So in an uptrend we want to see price more in the positive regression and less time in the negative.
We want to see how price behaves when it get to the upper limit on the positive regression.
We want to ask do it diverge when it hit the outer line or do it just pullback either way we want to see how far is the other price swings at the top are from each other.
We look at how often price pullback to the median line or do it pullback to a space within its regression and if it goes to the median line do it bounce off it will high volume.? How often is price going back to the median line.
If we are in the positive regression in an uptrend we want to see nice ranging candle width . Right? See we must examine price in its regression for flaws and or strength cuz if we are in a positive regression during an uptrend I want to see positive things. Get it? Or if I see weakness then I’ll be look for a possible sale get that,?
Now during a trend we expect price to go in the other regression as this is needed to maintain the health of a trend and when this happen we can get more info about the trend. As how fast and strong price pullback up to the trending regression. Do it get rejected from the median? How do it recover from this? How long it takes to get back to the median line.did it get rejected again.? Did it diverge there is there a candlestick pattern of rejection there? Or do price rip right through the median line?
These are just a few questions the regression can tell us about price if we stop looking for a easy go to answer and try to understand what price is saying. And I assure you if you practice with this in this manner you’ll see you price action skills grow. Cuz let’s get to the core price action is just looking at price structure and understanding what’s going on
HOW TO TRADE LIKE THEM-
