Indicators 2

8/2/2019 Indicators 2

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How to Trade Without Indicators Webinar

Transcript Part 2 of 4

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So what we’re looking for we want some clean moves, right? We want some distance in

the -- between the lines. We wanted to be fluid, right? We don’t want this choppy, slop

mess and there were so many pairs you can look at, right? So if the euro-U.S. dollar oneday is a mess, check out something else, right? Look at the lines you actually move this

up so we could see it better and probably can’t read that because I can barely read it. Butit says, “Example of the spread but just keep it in context.” Okay. Keep it in context to ahigher time frame to the MACD etcetera.

But look at this nice spread apart, right? Same thing here, you see same thing here. Look at the price, right? Look back and forth, you can see what’s going on there and this ishow I personally learned how to start looking more at price. I love that this -- okay, well,

that’s happening here but, hmm, what’s it telling? I would just think things like that andthe way I look at this, this would help confirm what I was learning, right? It will -- it’s

there. It’s right in front of you. There’s no -- I’m taking something that’s objective,right. Objective crosses and I managed to make it into something a bit more subjective

from what I saw because, you know, we’re looking at indicators. Indicators do one thingreally well and that’s lag. It doesn’t matter what you’re looking at, they lag, right?

I want to find out, well, through lagging, how can I get in before that? You see what I’m

saying? So when it starts to lag, where can I get in before that? A bigger picturedirection is how we’re going to use it. If we’re going to look at our direction in a bigger

picture, this is your U.S. dollar 240-minute chart, long only on lower time frames. So

you’re dropping, dropping nice, right? Now, is that being subjective? No. If I look atthe price, lots -- it is kind of subjective, right? When I say dropping nice, the word nice is

subjective. If I just drop down here to my indicator on my MACD, look at that. And that

confirms what I just said, right? It confirms that it’s dropping nicely.

Now, we’re going to get these retracements in here. Now this is where you, as a trader,can say, “Okay. Well, wait a second. My higher time frame, I got to -- my stochastics

has turned up. My MACD is still down -- what am I’m going to do?” I can’t tell you

what to do. I can’t. You’re going to have to look at the scale, “Okay. Well, yeah, butlook where it’s turned down. It’s turning down on places that’s, you know, they’re still

nice red candles, right? They’re not candles sucking this little one here.” But overall, my

MACD is down and then I spread apart. My MACD is not like it’s going to cross

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anytime soon. It’s sloping down. So I’m looking for one thing, I’m looking to short on

lower time frames.” The biggest problem that a lot of traders have is they want to doboth. They want to go short. They want to go long. They want to go short. They want

to go long with no idea of why except because it looks good. And this is what’s different

when I trade a system, I have different things in mind.

For example, I don’t care if a setup is happening,, you know, to go along into the high

today. You know, for me, high today is going to be usually London session, right,

because I trade the U.S. session. Generally, I have to say that the London session but I

won’t go long. It doesn’t matter to me if it’s a, you know, 50 pip winner, it doesn’tmatter to me. That’s my rules because I have learned through my own thing that’s when

I’m not comfortable doing that. Shorting -- I mean going long to the high. What I’d

rather do is fade it if there’s a setup there, that’s what I’d rather do. I feel say, well,

you’re picking the top you’re a -- you’re a contributing trader. And I say, “Yeah, good. Iam. Thank you.” There’s no harm in being that, you know, Paul Tudor Jones, that’s what

he does. It’s good enough for him to looking for reversals. It’s definitely good enough

for me.

So I’m going to take a couple of seconds here. We covered quickly multiple time frames,objectively determined trend and trend health and aggressive/conservative, right? The

aggressive was just looking at the stochastics and if that’s turned over on a higher time

frame, hey, I’m going to short. That’s aggressive. Conservative is waiting until theMACD is turned over, right? We know our settings now to objectively determine the

trend and trend health -- 8, 17, and 9 for the MACD; 8, 3 and 3 the stochastics. These are

also time frames. Look up for your four times frames up. A general rule of thumb lock

is daily transfer of four hour, four hour transfer and hourly, hourly trend or 30-minutetrend for something lower. Going below 30 minutes, especially in the FX market must

something I would personally do but people do it. So is there anything questions. Say,

well, do you see any questions there or Brian or anybody?

Okay. All right, I’m seeing some (inaudible) Island. I can see a few other questions and

I’d like to answer them. Conservative is someone asked. When I mean conservative, I

mean there’s aggressive trading and then there’s being conservative in the trading. TheMACD, for example, will confirm a -- for example, a down trend slower than the

stochastics crossover. An 8, 3, 3 stochastic cross which is the downside and you’re

deciding is short, that’s more aggressive than waiting for a confirmation -- I hate thatword confirmation, but on the MACD. Did that make any sense?

I don’t trade divergence. I don’t trade it and I tell you why. It’s once again it’d be --

bottom line, I trade -- I trade price. I don’t trade price action per se. I don’t trade like,you know, and the -- you know, price action has a different -- it’s just different than what

I trade. Trade people trade, you know, some sort of patterns. They trade, I guess that’s

called wedges etcetera -- I don’t trade that. I don’t trade those kinds of things. I don’t

trade divergence. and you can use this for divergence if that’s something you want to do

and then you can prove to yourself that you -- it doesn’t make sense to me so I don’t use



it. If it did make sense, I -- I’m sure -- so yeah, the indicators are the 8, 3 and 3

stochastics and the MACD is 8, 17 and 9, okay?

Okay. I can finally get some click connected and start late. Yeah, we started late and

maybe questions at the end since you start late. Yeah, it was pretty quick to go through

this PDF. No, but I believe it’s being recorded so we’re all good there. To use the samesettings for the lower time frames, yes. There is no changing the settings because you

drop down to a five-minute chart. I don’t -- I’m not the only one that’s going to tell you

this. You know, if I have to change my MACD to a lower time frame, how do I know

what settings to use, right? Do I test that as well? No, if it’s going to work on a higher time frame, there’s no reason why it’s not going to work in lower time frames and that’s

when we get into indicator trading. This is where everything gets so crazy and you willhear it, you know.

I’m going to use a five-period EMA, five- period weighted moving average. I’m going to

use -- where does it end? You know, where does it end? I’m going to use a 14, 3 and 3

stochastics on the four-hour chart and will use the 5, 3, 3 on a five-minute chart. To me,it’s like, “Well, where do you end? You know what I mean?” These have been proven

out. For me, anyway, you have proof for yourself. But for me, it’s proven now, right?

It’s an indicator on my chart, this web emergency.

Yeah, hey, you know what? Yeah, price, yeah, of course MACD lags price. I said that

all indicators like price. If it didn’t, it’d be great but they do. And you -- when you use it

for direction, you’re looking for confirmation of direction. Not everybody can look at a

chart and say, “Okay. It’s turned here and now the trend is down,” because when do you

know it’s down, right? When do you know it’s down? What objective way have you

chosen to say, “Okay, the trend is now down? It’s now turned. It’s now turned.” This iswhat this is all about. Where has it turned, right? Where has it turned?

And like I said, you know, if you don’t have to agree with me, if you don’t have to use

this, it doesn’t matter. It really doesn’t because we’re all going to find our own way, but

most people out there are just wondering around from strategy to strategy, to indicator to

indicator, and tell to sit down and get their stuff together. And say, “Hey. You know

what, I’m going to stick with this and then work through that,” it doesn’t happen. Youknow, I go to Forex stocks and sometimes you look at the news releases, right? If you’re

sitting there and somebody will pop up there like, you know, the feed or something or isthat guy tells you what the -- I don’t know the popular thread is right now, people are

jumping from strategy to strategy, you know, every week. But definitely, you don’t need-- you may not need it to tell you which way direction is but some people do and that’s

just the way it is. Yeah, it’s too much money and money quarterbacking. I don’t knowwhat that means, stochs 8, 3 and 3.

Oh, yeah, sorry. My name is Shane. If you ever see these videos, please be kind to shareit now. There you go. Sorry about that. If you go to the, like I said, NetPicks.com to

Trading Tips site, you can -- you’re good. You’re good to go, okay?



All right, so I think we covered most of the questions here and yeah, fading just means to

go against so on a strong up trend, I’m looking short, okay? That’s why we need to hear

that. That’s all it means, just fading the move and just going against. I don’t trade theSST in conjunction to these indicators. When I trade the SST, I just use price levels. I

have no other locators. 8, 3, 3 is the settings. Entry areas, I’m going to cover that.

What time frame for ES? You know, I can’t tell you that. That’s for you to decide for

yourself. It doesn’t what I trade or I don’t trade ES but it wouldn’t really matter, even

more lagging or trading lower time frame? No, price terms are faster on lower time

frames. Yeah, you can read these from another guy and I think I’m there. Someoneasked about price action. I can’t really go into it on this webinar because it’s not about

that but I could tell you right now, I don’t -- when I’m trading twice if you’re watching

my videos, I don’t really concern myself too much with trend but maybe a big up turn for you is a great shorting opportunity for me. And if you go to the Trading Tips website in

NetPicks, you’ll see a lot of those. Yes, stochastics is always aggressive. Okay. Sorry,

but I know some of you guys wanted the questions later but it’s just easier to do it here

because the way I sit this webinar up. I had no target in mind with that big turn. Okay.Okay. Let’s keep going, okay? Entry areas, so let me just ask that and then we’re going

to cover those, okay?

All right, where to enter. Everyone talks about this “where to enter” and it seems funny

because I choose the first question over here. You don’t use reward risk management

first, it’s always where do I get this trade? There’s couple of ways enter, right? Break outentries or retracements. And breakouts, they can work. They definitely can work. I

can’t cover it here but when you find them in the right spot, they definitely can work.

One word about retracements is just simply it allows you to buy cheaper, sell high, and at

retracements. And what you’re looking for is an objective area to watch for retracements.It can be a support with business level. It can be Fibonacci, congestion levels and I love

congestion levels like you would not believe and it all depends on you. It really does

with what you’re comfortable with. Some people can’t look at chart and go “This is

support resistance,” for some people just pulling pips from a high and low was great.

We’re going to cover that as we go and I’ll show you some examples of that. So there’s

so much we can cover in these webinars, okay? So if I’ve seen I’m going pretty fast isbecause I am. Let me see if I can make this a little bigger and I hope that works. Okay.

Well, if you look at -- you can look at, you know, the trend line you got to have a coupleof places to draw your trend line, right. You can trade third pullbacks of trade lines but

look at the problem with that. The old price will come down to it all the time, right?

Pullbacks into areas that ended with big moves away, this we’ll touch on it now.

The one thing about joining Fibonacci levels are a lot of Fibonacci traders they’ll do and

a lot people are just learning how to trade fibs onto. Those thrusting moves, those big

thrusting candles are great spots to pull fibs from and once I saw that, that’s how got it --got into more of looking at price and the big moves and where they occurred and taking

those trades. That those areas are key that’s why I’m talking about here of pullbacks into

areas that -- with big moves away. This should actually be a couple of levels to pull fibs



from like uncover fibs just to -- I ramble sometimes. It’s just how I want to go. Pullback

and support resistance areas, right here. You know, price broke through here. Pricepulled back to fill the orders, right, and grew here -- all down, right?

Break every trend -- trace and trend lines. If you decided that you were in a down turn,

like however, you know, it means you’ve decided on it, you know, draw or trace sometrend line. And once it breaks through, you know, you can sell that away for you to

pullback on a lower time frame and there’s just different ways that you can trade those.

And of course, fibs, these might be really hard to see. These are some of the different fib

levels, right? 38, 23, 50, 61, 76 or the best thing to do if you’re going to be trading fiblevels is look where they line up with natural support resistance areas. This level right

here, were pulled up in fibs. These little ones here didn’t really go anywhere, this pull upto the 50 level, right? Also where price had already previously bounced from and I

believe that’s a key level sitting there as well on this chart. So its stocks -- I don’t meanstocks. Fibonaccis worked and especially when they line up -- when they line up with

market structure, you know.

Okay. I’m trying this chart right here. Third back in the trend line, pullback confluence

areas. It’s the same chart. We covered this – well, actually, this is where it’s lining up

with the stochastics, okay. This is where I’m taking – okay. Find an objective way to

enter a trade. Don’t just trade and pullback, that’d be just silly, right? Find a reason to

enter it. Have a couple of things. Okay, here. This is ignoring any higher time frame,okay? This is, for example, say third pullback into a trend line, right? It would go along

here, some people would. Most people don’t know why they’re entering. Wait until the

stochastic crosses. Pullback into areas and with fib move away. Here’s where it comes

up.

Now some people will say, “We’ll how do you know, it is not going to go all the way

through?” Great question. It’s all this blue line down. What happens here? Stochastic

crosses over. What that means for you? It’s objective to enter a trade. You need toshort, right? It will free. Pull back and support resistance areas. Same idea but this is a

little messy, right? That was congestion up here, right? This is going to be a trickier one

because you see it’s going to cross a few times. Where’s your stop going to be? You’renot going to cover stop placement here but think of that as well, okay?

Will the price really get up in there? No, the price really do get up into this area. Itdepends on how you trade. Are you an aggressive trader? Do you think you needed to

go over the area? Some traders do. Unless it touches that area, some traders won’t tradeit. That’s fine. Over here, break up your trends and trace sand trend lines. The cross

happens here. When it’s breaking through, this is crossing down, that’s your trigger towhat, to short, Fibonacci levels.

We have to pullback here at your 38.2 level. Does it show when it hits it? No. Ourconfirmation is our fast stochastics, right? Our 8, 3, 3 level settings. When it crosses,

short so it will be all up here. Crosses, short, you see. It’s got a really great way of

trading into a trade without you thinking, “Oh, will I pull the trigger now? Do I wait until



I pull the trigger?” Most traders don’t pull the trigger. Most traders never get in the

game, right? They just don’t. This is telling you when to do it, when to do it.

Multiple time frames, we covered that. Objectively determine trend and trend health, we

covered that. Aggressive/conservative trading, right, MACD and stochastics, entry areas,

oh, that’s kind of – and entry trade and entry areas starting with, “What are you lookingfor? What area are you looking for? Are you looking for a pullback into support level?

Are you looking for a pullback the resistance level? Are you looking for a break of the

trend line whatever you’re looking for? What’s going to trigger your trade?

Well, if you’re aggressive on entries and why are you – I would never get into a trade on

a MACD and the stochastics crossing that triggered again my trade as it crosses the

stochastics. That’s my trigger. So now what I have done? I’ve made it very objective,

haven’t I? I objectively determined on a lower time frame if I’m going to go short or if I’m going to go long. I’ve done that. I’ve objectively determined the area where I’m

going to take action. There’s some of these space on a place on a chart you could take

action where you don’t take action. What’s going to prompt you to take action? Where’s price had to end up for you to go? This is the area I’m going to take action at.

Is it a trend line? Is it a break of a trend line, a retracement trend line? Is it a stochastics?

I mean is it a Fibonacci? Once you have that area, when is the time to pull the trigger?

When is the time to push that button? On the cross, objective, it’s on the cross. Get that?

Exit trigger. This is where’s it’s great. This is good. This is what I like about this and I

hope you can see this, right? You may know that in one second here. Okay. Hope

everybody can see that. I think this is where we left off, Brian. Is that working?

Brian Short: Yeah, you’re back in business.

Shane Daly: All right, guys. Yeah, sorry about that, everybody. Whatever. it happens.Anyways, this is where I left off I believe. Let me just make sure where – that’s where Ileft off, right? The entry area, the entry trigger, the areas, here’s an example right here,

third touch of a trend line, right? The only thing with a trend line for me that I personallyfind is waiting for the third touch or actually the second touch, right? But waiting for that

next touch, I’m – I like first returns there to do things but trend lines, you can’t do it,

right, because you need this – you need this two to get this third point. So gettingpullback into here, right?

Now, these are the areas I love that we’re seeing here. This just lines up nicely with that.

But anyhow, this shows at 59.60, this is on pound-U.S. 15-minute chart, okay? This is ahigher time frame. This is a 60-minute chart below, right? We’re on a short. It’s allwe’re looking for is a short. It’s this big move up here, right? People are probably

thinking “Oh, I’m gonna buy, I’m gonna buy, I’m gonna buy.” Yeah you can do that if

you can objectively find this area here to go long at, but what we’re doing? We’relooking at the MACD, right? So okay, the MACD is still down, it’s still down so this



move, it’s going to go. All this move is doing for you because you’re going to sell is

giving you a better place to sell that.

As objectively we’re saying, we’re only going to sell. That’s all we’re going to do. This

is what happens. It pulls back here. Now, where do you short? Where do you short?

Once stochastic is telling you where to short, you see that? It hooks down. So now Ihave found my area, right, where I want to short at. I know that I wanted to go short

because a higher time frame that is down. I short, price falls, right? This tells me – it

tells me to short, right, and I have to guess.

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for future webinars, as well as view all past webinar recordings athttp://www.netpicks.com/learning-center/training-webinars/




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