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Accumulation Distribution Indicator for Accurate Trend Trading

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Accumulation Distribution Indicator for Accurate Trend Trading
Accumulation Distribution Indicator for Accurate Trend Trading

Welcome to this video on the accumulation distribution indicator for accurate trend trading. This tutorial applies to Forex, the stock market and E-minis (as well as other futures markets).

You’ll learn how to use williams accumulation distribution to create an effective trend trading strategies.

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ACCUMULATION DISTRIBUTION INDICATOR

Welcome to this trading video on the accumulation distribution indicator. And there are several types of accumulation distribution indicators. There is an index that’s accumulation distribution I’ve done another video on that and then the one I’m going to show you today though was developed by Larry Williams and released in his 1986 book Secret of Selecting Stocks.

Accumulation distribution line we’ll just call it the online story choppy right. That’s a lot of ups and downs and ups and downs ups and downs. And for that reason I find it very hard to read to make any sense out of it. I look at the black line now that blank line is now the exponential moving average. The zero so-called zero leg exponential moving average. So it’s going to move as fast as possible. And basically what we’re looking for here is we’re looking for.

WILLIAMS ACCUMULATION DISTRIBUTION

And again we can’t see this alone. Got to treat it with other things. Let me be clear with that trend is lagging. So we cannot try this by itself. Got to treat it with a momentum indicator. Actually this is considered a momentum indicator but we’re going to use it as a trend indicator but we have to use that with a leading indicator number one. And we also have to use it with a cycle indicator number two to time our entries because this does not help you time when to get in when to get out.

OK so back here what I’m doing now is I am looking for the angle of the black line. The zero leg moving average. So here it’s flat. So I would say OK. During this time there’s no trend really no no clear trend. And you see the markets moving pretty much sideways. Then we start having the black line angling down. And so therefore then I would say all right now we’ve got a different situation now that is hanging down.

TREND TRADING STRATEGIES

The trend is down. All right. And another thing to look for by the way if you get a little early your signal on this is the spread between the moving average and the actual Aideen line. So you’ll see that the line starts sailing down here. One way by the way you can do this to us a little extra step. You can go up here and get your crosshairs are in Milliot over the moving average because the crosshairs bar is going to have a horse in a straight horizontal Lane on it.

You can look for the divergence there too not divergence but the moving away. So here you can see that the moving average has now pulled away from the crosshairs right there. All right. So it’s no longer horizontal and the blue lines maneuverability the black line. And so this would be about our first signal here and taking a short you know anywhere like below the low these bars then we’ll get you into a short trade in.

ACCUMULATION DISTRIBUTION INDICATOR FOR MT4 OR EXCEL

Look here where we get the market going sideways. And this is a big issue because a lot of times traders can make money with trends trends are very commonly taught and when the market is trending up ok I’m making money. That’s cool. Here’s the problem though then a lot of traders give back the money that they’ve made and sometimes more when the market goes into consolidation. If you can just learn to avoid trendless markets consolidating markets that’s worth a lot that helps you avoid a lot of losses and then get you back into profit.

Stay out during that time or look for a different market to be trading during that time when that’s clearly moving up or down. So here we get it right here at this point. We get the arrow here. This is where we get the line going up. If we take our global crosshairs. I can’t do it because I believe that everyone there let me take that arrow off for a second just to demonstrate this example again.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on accumulation distribution indicator for accurate trend trading? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite accumulation distribution indicator for accurate trend trading that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in support and resistance zones that actually work also showed in interest in this video:
http://www.topdogtrading.com/trend-trading-indicators-the-best-one-3-ways-to-trade-it/

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Support and Resistance Zones that Work in Real Trading

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support and resistance zones indicator
support and resistance zones indicator

Welcome to this video and support and resistance zones. This applies to Forex, stocks and futures. one of the questions that I receive a lot is how to draw support and resistance levels like a professional.

In this video you’ll learn how to find support and resistance in day trading and swing trading. I’ll also show you how to draw support and resistance lines in mt4 or any other charting platform.

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SUPPORT AND RESISTANCE ZONES

And so the market goes and goes and goes and boom well there it goes. OK so it went up and that could have been a potentially good entry let’s say. Now so here is the basically money management has two things money management and then also just the realities of the market. So let’s talk about money management first support and resistance zones are for a couple of different purposes.

Number one for entry is as we kind of illustrated here but also for exits. So if I have a let’s say for example I was short here and I was looking to take a profit at this support level then we never would have reached it. So that would not be good. And again from going long it didn’t quite get down to my support level either.

SUPPORT AND RESISTANCE ZONES INDICATOR

So I actually prefer to look for the lowest low of the real body is not of the low of the bar. Could be an open or a closed but the open body means the green section or the red section or green section here. And there is a very logical reason for that and that is that the markets are not so neat and tidy the mark is if you’re trying to make your technical analysis to picture perfect where you are looking for praise to go to the exact Penny, Pip, tick. We’re even to the little pixel on the chart. It’s just very unrealistic. That’s not how the market works. Markets are huge. Today we’re dealing with global markets of millions of people and trillions of dollars and everybody’s doing different things for different reasons.

Markets are not that pinpoint accurate. They’re a little messy, and so, therefore, are support and resistance zones. There’s a little bit of randomness in the market always a little bit of noise if you will. So you’ve got to allow for that noise. So that’s the logical reason from a market perspective just an auction place perspective if you will and then the money management part of it is that again if we are short and we’re coming into a we’re looking to take profits into a in this case a support level then I don’t want to miss it because of the market anyway.

HOW TO DRAW SUPPORT AND RESISTANCE LEVELS LIKE A PROFESSIONAL

That’s it. That’s what you got. So people do price all the time different shapes of price indicators and price bars and price patterns and these kind of horizontal support resistance levels. Those are price levels but very few people are trained to use the time access. The on the X access here and it’s very important because that’s really what we’re looking for we’re looking for the confluence of time and price. The intersection of those two things.

Today’s video is just about price levels it’s poor resistance Zola’s let’s look at one more example a little different example here now we have a moving average. This is the 50 period simple moving average. And you see it down there. So now how do we account for zones. This is the question because a moving average is really dynamic support and resistance zones. In other words it doesn’t stay the same praise as a horizontal line does across time.

HOW TO IDENTIFY SUPPORT AND RESISTANCE LEVELS IN FOREX

It changes price over time. So we’re not manually drawing it on there we can’t mainly draw a high a low. We’re at the real body. It’s just there it’s plotted mathematically. So how do we account for resume’s when it comes to a dynamic support resistance level. Well here’s how I do it. And there’s many different choices but this one’s worked very well for me for a long time.

So let’s just look at this bar here. So this part does come below the 50 SMA. Do I consider that this has broken the support for example if you look back here it held the support of the 50 SMA are pulled the support of the 50 SMA here and now it comes down. And do I consider this is still holding the support of the 50 SMA on this bar.

HOW TO FIND SUPPORT AND RESISTANCE IN DAY TRADING

I call that the flypaper phenomenon where it’s stuck. It’s like a little mouse that gets one foot stuck on the white paper the rest of his body is off its other four feet around. But that one little foot stuck in there there’s like a cat quite get off. So that’s what I consider this. It’s still touching it and that allows for the randomness. Now what about the next part the next part is a dog who got the wrong drawing tool on there.

That’s how I account for the support and resistance zones. Two different ways to account for zones as a review and if you have horizontal support resistance then I account for them by using the real bodies of the lowest bars and not to the highs and the lows. And for dynamic support resistance we have to have a bar completely clear the dynamics of where resistance such as a moving average and the real body has to be below the bar that was touching it.

RESISTANCE ZONE TRADING

We consider that we have now broken through that zone. So these things might seem minor but they actually become very important because sometimes technical analysis can be very deceiving because it’s so precise because it’s so mathematical and we’re looking at these lines and everything is very precise.

The problem is the dynamics of the market as I talked earlier because of the huge scale of them the dynamics of the market are not as accurate and therefore you need to have something like this built into your treaty methodology to account for that noise that randomness that chaos.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on support and resistance zones? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite support and resistance zones strategy that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in support and resistance zones that actually work also showed in interest in this video:
http://www.topdogtrading.com/backtesting-trading-strategies/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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Forex Strategy Success Strategies that Actually Work

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Forex Strategy Success Strategies that Actually Work
Forex Strategy Success Strategies that Actually Work

Forex strategy success strategies that actually work rely greatly upon reading the price structure of movements in spot Forex markets. For consistent profits scalping, day trading or swing trading Forex you ideally want the best Forex strategy ever.

This is something you can use with other techniques and indicators. It’s about price structure using moving averages for one of the most simple Forex trading strategies.

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FOREX STRATEGY SUCCESS

So this first one here the blank line that is the 15 ema exponential moving average and then this next line the red one is the 50 Period Simple moving average. And the yellow one here or maybe it’s orange kind of yellow orange there and that is a hundred period simple moving average. And then the purple one is the 200 Period Simple moving average. So those are the four that I use and I’ve been using them for years and they work really well.

Let me show you how I use these how I read them and so forth. The ultimate challenge and solution is whether the market actually responds to these levels of course. So basically what I’m looking for is the 50 Period simple moving average that I use as my line in the sand between a bull and a bear market. So if you’re above it and it’s singling out may consider that we are in bullish territory the market sentiment is bullish if we’re below it in it is moving down then I consider that we have a bearish sentiment.

MOST SUCCESSFUL FOREX TRADING STRATEGY

It will also provide support resistance because it is a very very common moving average and in fact especially in daily charts it perhaps may be the most common moving average that in the 200 simple moving average. So as the market comes down I look over here first of all this is very important as well when the moving averages clustered together like this.

Essentially what that really means is literally there’s been no significant change in price action over the last 15 periods or bars 50 periods 100 periods and 200 periods. So this is a sign when these moving averages all clustered together like this that we’ve been in a consolidating market and contracting market. This is one of the best Forex strategy success strategies that actually work.

BEST FOREX STRATEGY FOR CONSISTENT PROFITS

When we come back up where do we go we go to the 200 day. Now if we were to go above the 50 I’m actually we come to all three of them they’re all clustered there today together. But if we were to go Above all three then my reading on the market would be OK. The market participants have not really committed to a bullish or bearish sentiment yet. They’re testing both sides and they tested the downside for Forex strategy success.

They were not able to maintain that with the majority of traders worldwide. And so therefore we do not have a clear bullish market. In other words we don’t have a clear trend. But that’s not what happens when it happens of course is that it does hold the retraces up here the period simple moving average in bounces back down.

FOREX TRADING STRATEGIES THAT ACTUALLY WORK

It stays in bullish territory. Remember that’s the in line in the sand between bullish and bearish markets. So now we have a trend going and then the longer it goes the more the moving averages start to fan out. That’s called a stacked structure

The pinball pattern is where the market gets stuck between moving averages. So it goes between the 15 and the 50 and it keeps kind of bouncing in there. So a short term volatility signal that we are contracting in we’re looking for a move in one direction or the other in the way I determine which way it that’s going to go out is to look at momentum and the next higher time frame. All right so then we go back up and where do we go.

SIMPLE FOREX TRADING STRATEGIES

Timing is a big part of it. And by the way timing is so critical in trading. You really can’t trade without accurate timing and I do have a timing indicator that I do share with my youtube video subscribers. Now we’re going to go up but we’ve got these moving averages which provides support resistance. So it goes back up of course. You know it hits the DMA and of course we have this little pinball next level years ago goes to the hundred.

May notice that it provides resistance there comes back down to the 50 then goes back to the 15 and then comes back down to the 50. Now here’s a distinction that I make with support resistance and maybe I’ll do a separate video on this alone. This actually this part here is actually holding the 50 as support.

FOREX STRATEGIES SCALPING

We call this the flypaper phenomenon with the support resistance. The market is actually holding the EMA here this whole time comes back down here this low is simply created by just this right here. So we get a triple bottom market comes up to the 50 comes back down to that bottom again comes back up to the 100 it holding 100. This can lead to great Forex strategy success.

And then it comes back down to the 15. Then goes back up to the 200 then it gets back down to 50 then it holds the 100 here. So what you’re seeing is the price structure is very much determined by the moving averages these moving averages do provide support resistance which provides price structure price patterns.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on Forex strategy success? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite Forex strategy success trading strategy that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in the Forex strategy success strategies that actually work also showed in interest in this video:
http://www.topdogtrading.com/backtesting-trading-strategies/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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Backtesting Trading Strategies with Software is the WORST Way to Create a Trading System!

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how to backtest trading strategies
Backtesting Trading Strategies

Welcome to this video on backtesting trading strategies. The irony is that using trading backtesting software may be the absolute worst way to design trading strategies.

Learning how to backtest a trading strategy using excel, MT4 or another software program seems like a good idea at first. But it’s not. This video and article will walk you through the logic of exactly why, and what to do instead.

Was this video on backtesting trading strategies, helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

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BACKTESTING TRADING STRATEGIES

Welcome to this video on backtesting trading strategies I share with you my experience with backtesting which I have done for well I did do for many many years. I don’t do it anymore and I’m going to share with you why. I have very sophisticated software very high powered computer system and I was trained in how to do this I’d find a few strategies that were viable historically.

Then what you do typically is you understand that’s curve fitting. So then you take the successful strategies and you apply them to data that is separate from the data used historically that’s called out of sample forward testing. So most of them when I took them and use them on out of sample data they failed the night. Ninety five percent of them. So then that last 5 percent which is very hard to find.

TRADING BACKTESTING SOFTWARE

I would then start treating real live markets in current time and none of them were successful over the long period of time someone worked for a little while and then ultimately fail. So why is that. I started to wonder because I spend a lot of time on that and I was very disappointed. So I started thinking about it. I realized you know there are some real problems with the whole idea of backtesting. Here’s the first one.

You’ve seen this legal statement everywhere. Go ahead and fill in it just in your mind just fill in the the end of the sentence. Past performance is no guarantee of what you know the end of this. Most people do. We see it everywhere in websites and on documents that people send to us brokerage firm software whatever. Past performance is no guarantee of future results. This is why trading backtesting software isn’t reliable for futures profits.

HOW TO BACKTEST TRADING STRATEGIES IN MT4

So we’ve seen it everywhere. You knew that. That’s a problem. If that’s a legal statement that all these companies put on their documentation that means that that’s a very significant issue and it is in fact that many studies have been done on this Couple of a moment or in 2014 a Wall Street Journal study found that only about 14 percent of Five-Star funds retained their reading 10 years later.

Past performance was not indicative of future results. In 2013 a Vanguard study reported that the one stars and now we’re looking at the other end The Wall Street Journal analyze the Five-Star at Vanguard study the one stars and they had the actual greatest excess returns what they call when compare it against a benchmark. So wow. What the heck’s going on. Yes I hate the opposite of what you would expect especially when most people make decisions on funds to buy based on their past performance. If this is true, then learning how to backtest trading strategies in mt4 may be futile.

HOW TO BACKTEST A TRADING STRATEGY USING EXCEL

Well to me what that indicates is there’s probably a reversion to the mean. We all know that very very few people ever outperform just the benchmark the S&P 500. And so therefore if it does outperform for a while it reverts back to the mean if it underperforms for awhile revert back to the mean. So that’s one huge problem.

Another one is that markets change over time. Back when I started trading which is decades and decades and decades ago I’d have to call my broker on a rotary phone of all things my kids don’t even know who the rotary phone is anymore. They see it in a museum. But yeah we didn’t I mean we had a black and white TV. So learning how to backtest a trading strategy using excel may not be applicable to today’s markets when using long-term historical data.

BACKTESTING TRADING STRATEGIES FREE

We certainly didn’t have computers. And so there’s no direct access. You know there were no low commissions commissions or high cost me 50 bucks to get in 50 bucks to get out decimalization wasn’t around. There was no mobile devices didn’t even have a computer. Bottom line was trading was slow slow and expensive and therefore chart patterns trended more today. People use all this technology to get in and out of the market real fast. That creates choppier chart patterns.

The patterns today are different than they were back then. Now that’s on the retail side. Now on the professional side you’ve got Elgood trading high frequency trading. It got dark pools. So the speed of what’s going on here in the retail around the professional sites even faster. And so again you get different type of chart patterns than you did in the past so. Add to that, the fact that many traders want to use backtesting trading strategies that are free and well, you get what you pay for!

FREE BACKTESTING

Okay that’s great. Now that all begs the question of all day what do we do. So the first thing to acknowledge is are no certainties in the market. Part of that reason we do free backtesting is we’re looking for some certainty as to what’s going to work in the future. And so acknowledge that there’s always risk in the market. You know back in the days of Jesse Livermore they used to call it speculation. I still prefer the term speculation to trading because it reminds me that there’s always risk in the market.

Here’s how I trade here the principles I use two things. Number one market logic and mathematical logic. So what do I mean by these. Well let’s take emerging market logic first. So I’m referring to the market profile model where the market is seen as an auction place and in an auction place you’re beating on memorabilia and so forth art whatever it might be and that that item that’s going to sell for whatever someone is willing to pay for it.

BEST WAY TO BACKTEST TRADING STRATEGIES

And that’s how the markets work too. We’ve got this global auction place essentially. But the logic of the markets not always logical. Sometimes people pay more than many people would think that a piece of art is worth because they have sentimental connection with that. And the same thing happens in the financial markets. So and we see that with bubbles. We’ve seen it in the real estate bubble recently. Before that we saw in the technology bubble before we even start with tulips. If you go back farther and of tulips of all beings and of course this is what Alan Greenspan referred to is as irrational exuberance.

The market logic is the logic of well logic in quotes of people and psychological studies have shown that people generally. Even though we don’t admit it to ourselves we generally make decisions based on emotion and justify them with logic. And so the market logic is not individual psychology but mass psychology that plays a major role in how markets move. Thus, there may be no best way to backtest trading strategies.

FREE BACKTESTING SOFTWARE

The second part of the larger equation that is the mathematical and got to include this too. Because over half of the shares in the New York Stock Exchange aren’t traded by human beings Well I should say they aren’t. The decisions the trading decisions are made by computer models and some of these don’t really affect you in your trading and you certainly can’t compete against them.

You and I cannot compete against these. You’re not going to get free backtesting software or a forex robot on the Internet for $19 that it is going to compete with Goldman Sachs or Merrill or Bank of America. So here’s what I do. I combine these two types of logic. And the bottom line is that mathematically measuring what the market participants are doing now. So again remember it’s market participants globally and I’m taking a treat now.

I need to know what’s going on in the market right at the second entering the trade. Now what happened you know six months ago 12 months ago 40 years ago I trade in the present bar by bar and manage my risk and then I use indicators to objectively and mathematically measure the money flow in and out of the market. Now that’s what we’re looking for the money.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on backtesting trading strategies? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also I’m giving away one of my favorite backtesting trading strategies that works in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in the backtesting trading strategies also showed in interest in this video:
http://www.topdogtrading.com/heiken-ashi-strategy-trend-trading-unique-japanese-candlestick-chart-pattern/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
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