So folks in this video I'm going to be telling you about my top four indicators for usage in 2020. I'm also going to be giving you a wonderful explanation as to why I use them, the way that I use them, how they work, as well as how to set them up personally. Over the course of my trading journey, I have adjusted my settings many times. If you were to see some of my original setup, you'd be shocked to see how different it was.

These settings and the indicators that I've chosen to use are the ones that I believe worked best with my personal trading style and my personal goals. As you evolve as a trader, you may find that you want to adjust the settings. That's up to you my friend. For those of you who are new here, the platform that I'm using is called Thinkorswim.

you can get that for free on TD Ameritrade website. It's not perfect, but it is one of my favourite platforms. In fact, in this world, there is only one thing, just one thing that is perfect and that is the act of going and hitting that ravishing like button. Okay so to start if I was stuck in the middle of the desert and only had one indicator to use I guess I'd have other problems if I was stuck in the desert.

But let's just say that the only way out was to trade my way out. Well, the first indicator the most important indicator that I pick is our blue priced ranked Besame line. Why is that? Well, it's because this is what allows us to measure our price strength right. If we're above the blue Esmay line, we're in positive price strength territory.

If we're below it, we're in negative price rank territory. It's pretty easy to understand, but the reason that this is relevant is because if we can find a confirmation of positive price strength, that's what a confirmation means: confirming that we have positive price breaks. That means that we can write that until we have Boom boo-boom Negative price strength. Pretty intuitive, right? And with that goal in mind, we have concrete entry and exit points.

But it's also more than that because if you expand this to a different time span, you get different results, right? So if you're looking at the context of this last 10-day period, during this period, we have clean, positive price drinks, right? And then here we have choppy Price strength. But during the that's a chart, you can see different areas of price strength. so it depends on the overall context. That understanding price drink means that you can take all of the different pictures into your larger, broader understanding of what's actually going on.

If that could be the only indicator that I'd have the option of using, then that would be what I'd focus on. But another thing to keep in mind with something like this is that a lot of people say Oh indicators. They don't tell you anything that you can't see by just looking at the price action. However, it's a lot easier to look at this blue price drink than some a line and see whether or not we're in a positive or negative territory as compared to if we just went and turned it off.

Let's just turn that one off for a second. Okay, so can you tell for a positive or negative price drink you could say oh oh, this went down here. This went down. but it's not as easy and clean-cut to see the overall picture if you don't have the indicator set up.

So, but that's just my two cents on that. You don't have to have it set up if you don't want to, but you know it's really up to the individual and its back Ok and then you can see positive cry strength, positive price range, blah blah blah and being in a positive price range territory, that's an elevating factor. By the nature of that you're in positive price prints. Okay, so the second indicator that I'd trade my way out of the desert with is the red directional SMA line.

Folks, this is what you use to gauge your direction. How do you know whether you're in an upward or downward direction? Well, pretty intuitive. If you're trading above the red directional SMA line, you're in an upward direction. If you're training below it, you're in a downward direction.

And if you just attempted to turn your upward Direction into a downward direction and then rejected it, that's called a rejection of a downward direction, which is a elevating factor. Hope I Didn't lose anybody there, but it's actually pretty intuitive if you actually look at this for a longer-term context. All of these indicators have longer-term context. By the way, you can't just take it all in a vacuum.

On the 1-minute one-day chart, you need to look at everything right? So if you're looking at this in terms of the 5 day 15 minutes, all of a sudden, we're like, okay, well look at the context. We had uncertain price direction, uncertain price direction, and then all of a sudden it got quite certain, right? It gained intense cry strength and it broke out above previous price strength and then continued running up. And as the directional read: SMA line goes up, that's a sign that the overall direction is now more profitable. It's moving faster upward, so the barrier to be mew'd Saturn upper direction is now higher.

This is also very important for stocks like Tesla right? People were playing Tesla they loved Tesla I loved Tesla but you know it's quite extended. But if you're looking at this from like 188 perspective, we can see okay, well, we had uncertain price direction and then boom boom boom we held upper direction. but let's just go ahead and look at it from the 20-hour perspective. Okay, so we have.

We're getting close to changing direction and then we're still on the up-and-up So in terms of actual direction in terms of a swing, right, we haven't really changed directions yet, but we have negative price break that's been selling off and that's something you can consider it. With the directional awesome a line, it's something that's very useful. Let's go back to fix. Okay, so the next indicator that I'm going to be talking about I should talk about volume.

It's not really an indicator, but I should talk about volume when it comes to upper 10th emit volume when you have when you have a stock or inch Vixx's case in each end that is going up and you have volume that's going up with it. That means that you have upward sentiment volume. The same thing is true in Reverse If you have downward sloping volume and me volume is going up, that means you have downward sentiment volume. And it's important to know that because then as the day trades on, all of a sudden, you're in the situation where you see volume increasing.

but you know that it's already upward biased. so that's an elevating factor. A lot of people don't look at volume, they just say oh well, is this enough shares to trade off of And then if it is, then okay, well. I don't have to think about it, but in terms of actually understanding what's moving the price action.

in terms of actually understanding why something's going up or down, you need To look at the Vol. You mean you need to be familiar with volume and you need to be familiar with analyzing that for elevating and deprecating factors. Okay, so we cover the two SMA lines are blue, price break this may line and our red directional SMA line. Okay, next the RSI be relative strength index or as some people say if you really sly indicator haha get it cuz RSI haha initials Ah, nevermind.

So what this tells you is whether or not something is oversold or overbought. Now something that's oversold doesn't mean that it's a good deal. It just means that in terms of this one indicator in terms of this previous price action, that it's a good deal and something being overbought doesn't mean that it's necessarily a bad deal, it just means that it's more likely to be a bad deal. Let's look at a different piece of price action.

I'm not Tesla will try AMD Okay, so if we look at this from a twenty day one our perspective, we have that pattern of going from overbought to you oversold, to overbought, to oversold, to overbought. this over but yet to overbought again and then to over-salt So we have a light, formable to come back pattern where you could simply buy in and over solvent. If you had done that every single time, you could have just sold that at overbought and made a profit. So how does this indicator actually factor in when it comes to all of the other indicators? Well, if you're looking at this point here like, okay, well we have negative price drinks, we have positive price direction and and we're oversold.

So you know that hey, maybe in the past it recovered from oversold to overbought. We didn't see this on that chart. but if you look at the past, this is what had happened. and then all of a sudden you could say okay, well we know that being oversold is a elevating factor.

We know that being in an upward direction is a elevating factor. So now we just need a clean price drink confirmation. We want our price break confirmation over our Blue SML line and then we write up, rewrite up. We have after hours and pre-market trading and then here we have some false confirmations.

But it doesn't really matter because if you buy into priced right, that's fine. You could sell out if you have price weakness at validation below the Blue SMA line. But buying in at confirmation can allow you to write up right up right up and then sell out at validation. And it really depends on how you're practicing this right.

Because it's it's more of an art form. How is it that you're actually playing this position? How stringent are you being with this type of position? And in terms of stringency, it's very important to understand that Hey, at this point, look at market closed. we're overbought. Look how overextended we are.

That's insane and we have this upper ten to mid. So all of a sudden we're at this point where it's like, okay, well, wait a second if it cracks below our blue price break, that's a male line. We're in a negative direction and we have these huge deprecating factors of being overbought. so it's like, well, hey, maybe I should sell out.

So it really is. At the end of the day, it's a huge balancing act of elevating and deprecating factors. Another thing that I would like to show you in terms of the Docq. Now let let me let me find a better one just to show you a good overreaction Play What was a good one from a few weeks ago CDE No no no, BBY was a great one that was I have a terrible addiction to talking about my good call outs.

But anyway, so this is another example of a stock that has a previous pattern of being not just an overreact play. that means having a bad piece of news come out dropping and massive women completely recovering. Or at least partially recovering because every reaction in stock market is an overreaction. But it also has this pattern of going from oversold to overbought again and again.

right? And if you had done that, if you had bought in an oversold and just held out until overbought each and every single time, you would have made a profit. But look at combining all the indicators together. Look at how that works, right. Oversold.

Get over bottom. At this point, we have. okay, well, we're oversold, right? and then we're overbought. and then all of a sudden.

Boom Boom boom boom. After being in an upward direction, at this point, we're oversold again. Now, if you look at this for context, look at what's happening here. We have multiple elevating factors going on.

we have All of a sudden we have this breakdown deprecating factor breakdown at price strength and price direction. and then we test a downward direction. But look, what happens, it rejects it and we have a clean confirmation upwards, likewise, allowing us to right, not just from oversold to overbought right, not just from oversold to overbought, but also from confirmation to validation. So it's very important for you to understand exactly how to balance your elevating and your deprecating factors.

The same thing happens here, right? I Get to be down a bad news and then it goes up. So in any case, this is sort of a quick overview of how all these indicators come together to make you a better trader. But using them in different contexts can make it very helpful to understand exactly the context of cry strike, the context of price direction, and sort of the context of where you are in terms of oversold or overbought long-term Okay, so at this point, we're going to show you how to set up each indicator from scratch. So we're gonna go from studies to ad study.

Oh no no, no edits, studies, and then we're going to go to Simple Moving Average. We're going to add two of these. Okay, and now we just have to edit them. So let's edit this one.

first. this is going to be our red direction less to me. Line this attack to 180 and then we're going to set this to red because what is a red directional SMA line. If it's not red, am I right or am I wrong? I'm right.

Okay, all right side. Then we're gonna add the RSI and then we're gonna add the RSI RSI set to default. Pretty simple and we're going to add the MACD. You may notice that I didn't talk about the MACD and the reason is because it's not one of my top indicators.

it's just something that I therefore adding a little bit extra edge. I'll talk a little bit more about that later. but I have a ton of videos on it. I Just don't want to confuse people with all these different indicators.

So in terms of these: I Think these are all correct. I Think the only one that you need to change is the 180 to make it read. in terms of the blue price drink, that's the main line. Yeah, it's blue and we set it to nine.

I Don't know if I set it to default at 9:00 but it's at 9:00 So if it did your number something different, just switch it to 9:00 Okay, apply. So here we have all of our indicators. We have our blue price strength indicator, we have our red directional strength indicator, we have our volume, we have our our side B relative strength index that tells us whether or not something is oversold or overbought and then we have our MACD And the MACD is really just useful for gauging price strength in a different way. It's very similar to the blue price, right? custom a line and that when you're over it, you're gonna be more in the green category and when you're under, you're gonna be more in the red category.

But there are some reasons too that I Don't want to get too much more into it I Don't really see the MACD is that valuable to your average trader. It's just for folks who do want that extra edge and you can learn more about that by searching Zip Trader MACD or going into my in-depth analysis within Zip Trader you. But it's up to the individual anyways. folks.

I Do hope that this video lesson on setting up your indicators I'll leave these specifications open. On setting up your indicators was helpful for you. If you have any questions whatsoever, feel free to reach out to me. In the comment section below, you can tweet me at did Charlie can join our free zip printer circle Facebook group Anyways, have a great day! Make sure to hit that ravishing like button and I'll see you in the next video.