This NEW TradingView Indicator Is Better Than PREMIUM |  Best Indicator For Scalping on 5min Chart

Summary

This video introduces a unique scalping strategy for various markets, including cryptocurrencies and stocks, focusing on 5-minute charts. It reveals a secret indicator, the Triple Confirmation Kernel Regression Overlay by Quantra AI, which combines three kernel regression functions for balanced market predictions. The strategy also incorporates the Voss Predictor for enhanced entry signals. Detailed instructions on setting up the indicators and rules for entry and exit points are provided, emphasizing the importance of trend analysis and signal validation for effective trading.

Takeaways

• 📈 The video introduces a scalping strategy using a secret indicator for 5-minute trades, emphasizing its accuracy and suitability for various markets including cryptocurrencies, stocks, futures, and major forex pairs.
• 🔍 The strategy involves two free indicators: the Triple Confirmation Kernel Regression Overlay and the Voss Predictor, which are used to identify trends and filter out false signals.
• 🛠️ The Triple Confirmation Kernel Regression Overlay uses three kernel regression functions to provide a balanced view of market trends, capturing complex and nonlinear relationships within financial markets.
• 🔧 The video provides specific settings for the Triple Confirmation indicator, such as adjusting the bandwidth, standard deviation, and enabling overbought/oversold shading to maximize profits.
• 📊 The center line of the Triple Confirmation indicator represents the long-term average trend, with the price action below indicating a bearish market and above indicating a bullish market.
• 📌 The Voss Predictor adds a color-changing predictive filter line and dots that signal the market's momentum and direction, enhancing entry signals for trades.
• 📝 Entry and exit rules are clearly defined for both long and short positions, including conditions for price action relative to the indicators' lines and zones.
• 🎯 For long positions, the price must be above the white line (bullish trend), below the overbought zone, and have a bullish crossover below the center line with green dots indicating bullish momentum.
• ❌ For short positions, the price must be below the white line (bearish trend), above the oversold zone, and have a bearish crossover above the center line with red dots indicating bearish momentum.
• 🚫 The video script emphasizes that the strategy is for demonstration purposes and should not be taken as financial advice, urging viewers to use the information responsibly.
• 👍 The presenter encourages viewers to subscribe to the channel for more informative content, highlighting the educational value of the video.

Q & A

What is the main topic of the video?

The main topic of the video is a scalping strategy using a secret indicator for trading in various markets, including cryptocurrencies, stocks, futures, and major Forex pairs.

What is the time frame that the strategy is best suited for?

The strategy is best suited for 5-minute and 15-minute time frames, although it can also be effective on longer time frames such as 1 hour and 4 hours.

What is the first indicator mentioned in the video and what does it do?

The first indicator mentioned is the 'triple confirmation kernel regression overlay' created by quantra AI. It uses three different kernel regression functions to calculate a balanced and smooth composite of the regressions.

What is kernel regression and how is it used in trading?

Kernel regression is a non-parametric machine learning algorithm that fits curves to a given data set by combining historical market data. It is used to make informed predictions and gain insights into market trends, especially capturing complex and nonlinear relationships.

What are the three kernel regression functions used in the triple confirmation indicator?

The three kernel regression functions are the Parzen, Wave, and Logistic kernel regressions, each with different methods of assigning weights to data points based on their distance from the target point.

How should the bandwidth and standard deviation be adjusted in the indicator settings for optimal results?

The bandwidth should be changed to 75 and the standard deviation extreme from 3 to 2 for optimal results in the market.

What does the white line in the triple confirmation indicator represent?

The white line in the triple confirmation indicator represents the long-term average trend. If the price action is trading below this line, it indicates a potential bearish market and downtrend.

What is the significance of the purple and blue channels in the indicator?

The purple upper channel signifies an overbought market condition, while the blue lower channel indicates an oversold market condition.

What is the second indicator added to enhance entry signals and what does it do?

The second indicator is the 'Voss predictor'. It has a color-changing filter line that, when it crosses over or under a white band pass filter line, signifies buy or sell signals depending on its position relative to the center line.

What are the conditions for entering a long position according to the strategy?

To enter a long position, the price action must be trading above the white line (indicating a bullish trend), below the overbought zone, with a bullish crossover below the center line, and the center line dots green.

What are the conditions for entering a short position according to the strategy?

To enter a short position, the price action must be trading below the white line (indicating a bearish trend), above the oversold zone, with a bearish crossover above the center line, and the center line dots red.

How should the stop loss and take profit be set for trades based on the strategy?

The stop loss should be set just below the blue shading or at the white line for long trades, and just above the purple shading or at the white line for short trades. The take profit should aim to be two times greater than the stop loss.

What is the disclaimer regarding the strategy presented in the video?

The strategy is for demonstration purposes only and should not be taken as financial advice. It is for informational purposes, and viewers should not rely solely on this information for trading.

Outlines

00:00

📈 Introduction to a Scalping Strategy with Secret Indicator

The video script introduces a scalping strategy that is claimed to be highly accurate for 5-minute trading. It reveals a lesser-known indicator, the Triple Confirmation Kernel Regression Overlay by quantra AI, which uses three separate kernel regression functions to smooth data and predict market trends. The strategy is applicable to various markets, including cryptocurrencies, stocks, futures, and major forex pairs, with the best time frames being 5 and 15 minutes. The script explains how to set up the indicator, adjust its settings for profit maximization, and interpret its signals, including the center line, upper and lower channels, and color-changing shading for short-term trends. Additionally, the Voss Predictor is introduced to enhance entry signals, with its color-changing filter line and dots indicating market momentum.

05:01

📉 Entry and Exit Rules for Scalping Strategy

This section of the script outlines the specific rules for entering long and short positions using the described scalping strategy. For a long position, the price must be above the white line (indicating a bullish trend) and below the overbought zone. A bullish crossover below the center line and green center line dots confirm a valid buy signal. Conversely, for a short position, the price should be below the white line (indicating a bearish trend) and above the oversold zone, with a bearish crossover above the center line and red center line dots. The script provides examples of valid and invalid signals, emphasizing the importance of following the entry and exit rules. It also includes a reminder that the strategy is for informational purposes only and should not be considered financial advice.

Keywords

💡Scalping Strategy

A scalping strategy in trading refers to a method used by traders to make profits from small price changes in the market. This strategy is typically employed for quick trades with the aim of accumulating small profits over time. In the context of the video, the scalping strategy is focused on using a secret indicator to capitalize on 5-minute trades, highlighting its applicability in fast-paced trading environments.

💡Kernel Regression

Kernel regression is a non-parametric technique used in statistics and machine learning to estimate the conditional expectation of a random variable. It involves fitting a curve to a given data set by assigning weights to data points based on their proximity to the target point. In the video, kernel regression is used by the 'triple confirmation' indicator to smooth data and capture complex market trends, which is crucial for making informed trading decisions.

💡Triple Confirmation Kernel Regression Overlay

This is a specific type of indicator used in trading platforms that combines three different kernel regression functions to provide a balanced and smooth composite of the regressions. It is mentioned in the video as a 'super cool tool' that helps in making predictions and gaining insights into market trends. The indicator plays a central role in the scalping strategy being discussed, as it aids in identifying potential trading opportunities.

💡Overbought/Oversold

In trading, 'overbought' and 'oversold' are terms used to describe a security's price level relative to its true value. A security is considered overbought when its price is believed to be too high, and it is likely to decrease soon. Conversely, it is considered oversold when its price is believed to be too low, and it is likely to increase. In the video, these terms are used to identify market conditions that can signal potential entry or exit points for trades.

💡Voss Predictor

The Voss Predictor is an indicator used in trading to predict future price movements based on historical data. It is mentioned in the video as an additional tool to enhance entry signals in the scalping strategy. The indicator uses a color-changing line that, when it crosses over a certain threshold, can signal a buy or sell opportunity, depending on the context of the market conditions.

💡Center Line

In the context of the video, the center line represents the long-term average trend of the market. It is a key reference point in the scalping strategy, as it helps traders determine the overall market trend (bullish or bearish). The video explains that when the price action is below the center line, it indicates a potential bearish market, and when above, it indicates a potential bullish market.

💡Bullish/Bearish Momentum

Bullish momentum refers to a situation in the market where asset prices are rising or are expected to rise, indicating optimism among investors. Conversely, bearish momentum indicates a market where prices are falling or are expected to fall, reflecting pessimism. In the video, the color of the dots on the center line is used to indicate the current momentum, with green signifying bullish and red signifying bearish, guiding traders on when to enter long or short positions.

💡Stop Loss

A stop loss is an order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a position. In the video, setting a stop loss is part of the trading strategy, with the recommendation to place it at a certain level relative to the market conditions (either above a certain shading or below the center line) to manage risk effectively.

💡Take Profit

Take profit is an order placed to sell a security when it reaches a certain price, aiming to lock in a profit. It is a strategy used to secure gains and is part of risk management in trading. The video suggests setting the take profit at a level that is two times greater than the stop loss, which is a common rule of thumb to ensure that the potential profit outweighs the risk.

💡False Signals

False signals in trading refer to market indicators that suggest a particular action should be taken, but the anticipated price movement does not occur. In the video, the presenter discusses methods to filter out these false signals to improve the accuracy of the scalping strategy. This is important for traders to avoid making decisions based on misleading market data.

Highlights

Introduction of a mind-blowing scalping strategy for 5-minute trading.

The strategy uses a secret indicator that is not widely known.

Applicability of the strategy to various markets including cryptocurrencies, stocks, futures, and major Forex pairs.

Recommendation of 5-minute and 15-minute time frames for the strategy.

Introduction of the first indicator: Triple Confirmation Kernel Regression Overlay by quantra AI.

Explanation of Kernel Regression as a non-parametric machine learning algorithm.

Description of the three separate kernel regression functions used in the indicator.

Adjustment recommendations for the Triple Confirmation Kernel Regression indicator settings.

Explanation of the center line's significance in identifying long-term average trends.

Identification of overbought and oversold market conditions using color channels.

Introduction of the second indicator: Voss Predictor for enhancing entry signals.

Description of the Voss Predictive Filter Line and its role in generating buy and sell signals.

Importance of the color-changing dots in the Voss Predictor for identifying market momentum.

Entry rules for long positions including price action conditions and indicator signals.

Entry rules for short positions including opposite conditions to long positions.

Exit strategy involving setting stop loss and take profit based on specific rules.

Examples of applying the strategy to real market scenarios with visual demonstrations.

Disclaimer that the strategy is for informational purposes and not financial advice.

Encouragement to subscribe for more trading strategy videos.

Transcripts

hey everyone welcome back to our channel

in this video I'm going to share with

you a mind-blowing scalping strategy

that I just recently found and it's a

secret indicator that not many people

know about and it's pretty cool so in

this video I'll be revealing this

strategy and showing you how to set it

up trust me it's perfect for 5 minute

scalping and it's incredibly accurate

and I'll also show you guys how to

filter out some of the false signals so

stay tuned Until the End okay so let's

get straight into it it is important to

note that this trading strategy can be

applied to various markets including

crypto currencies stocks Futures and

major Forks pairs the best time frames

to use are 5 minutes and 15 minutes

although the strategy can also be

effective on longer time frames such as

1 hour and 4 hours currently I am

viewing the Euro USD chart in the 5

minute time frame the trading method I'm

about to show you consists of two free

indicators all right let's first add the

indicator to the chart to add indicators

simply click on the indicator menu

located at the top then in the search

menu type the name of the first

indicator which is the triple

confirmation

and it's this one triple confirmation

kernel regression overlay created by

quantra AI click on it to add it to the

Chart this indicator is a super cool

tool that uses not one not two but three

different kernel regression functions to

calculate a super balanced and smooth

composite of the regressions if you

don't know how the kernel regression

works let me give you a short

explanation kernel regression is a

non-parametric machine learning

algorithm that operates by fitting

curves to a given data set by combining

historical Market data with the power of

Kernel regression we can make informed

predictions and gain valuable insights

into market trends this technique has

proven particularly effective in

capturing complex and nonlinear

relationships within financial markets

the triple confirmation kernel

regression indicator utilizes three

separate kernel regression functions

first the app nikov kernel regression

known for its exceptional ability to

smooth data this method assigns less

weight to data points that are farther

away from the target Point effectively

minimizing variance second the wave

kernel regression similar to the EP

nikov method this approach assigns

weight to data points based on their

proximity enabling it to capture

repetitive patterns and wave like Trends

within the data consequently it

effectively smoothens out the impact of

underlying cyclical Trends and third the

logistic kernel regression this uses the

logistic function in order to assign

weights by probability distribution on

the distance between data points and

Target points it thus avoids both bias

and variance to a certain level now

let's make some tweaks to this indicator

to maximize our profits in the Market

when you head over to the indicator

settings panel I recommend making a few

adjustments in the input section change

the bandwidth to 75 which is the length

of the kernel regression calculation and

standard deviation extreme from 3 to

2 and then tick the overbought oversold

shading and in the style section and TI

the bar color once you're done click on

okay to save the changes here this white

line is the center line which represents

the long-term average Trend when the

price action is trading below this

Center Line it indicates a potential

bearish market and a downtrend

consequently during a downtrend our

Focus will solely be on identifying

selling opportunities and when the price

action is trading above the center line

it indicates a potential bullish market

and an uptrend consequently during an

uptrend our Focus will solely be on

identifying buying opportunities above

the center line there is a distinct

purple upper Channel when the price

approaches or enters this upper Channel

it signifies an overbought Market

condition conversely below the center

line there exists a lower Channel

resembling a shade of blue although I am

un certain of the exact name of this

color for this video I will refer to it

as blue so when the price enters or

approaches this lower Channel it

indicates an oversold Market condition

next we have this color changing shading

that moves along with the price giving

us valuable insights into the short-term

trends of the market when it turns blue

it indicates an uptrend and when it

changes to purple it indicates a

downtrend all right now let's take it up

a notch and add an additional indicator

to enhance our entry signals to apply

the indicator simply go to the indicator

section and type Voss predictor in the

the search

box and select this first one Voss

predictor click on it to added to the

Chart this line here that changes color

between green and red is the Voss

predictive filter line and the white

line represents a band pass filter when

the Voss predictive filter line crosses

over the white line it signifies a Buy

Signal however for this by signal to be

valid the crossover must occur below the

center line similarly when the Voss

predictive filter line crosses under the

white line it indicates a cell signal

and the crossover should happen above

the center line additionally we have

these dots located in the middle of the

indicator that change color the color of

these dots holds significant importance

as it reveals the current momentum and

direction of the market when the dots

turn red it indicates bearish momentum

in such cases we solely focus on bearish

crossovers that occur above the center

line which indicate a cell signal

conversely when these dots turn green it

signifies bullish momentum and we only

seek bullish crossovers below the center

line which indicate a Buy Signal now

that we've covered the foundation of our

strategy let's move on to the entry and

exit rules let's begin with the rules

for entering long positions first the

price action must be trading above the

white line which indicates a bullish

Trend however it is equally important

that the price remain below the

overbought Zone moving on to the second

indicator we should look for bullish

crossovers below the center line

additionally the center line dots should

also be green further supporting the

bullish Trend if all of these conditions

are met you can take a long position we

will open a long order at the opening of

the next candle you can place your stop

loss just below this blue shading or at

the white line as for your Target aim

for a profit that is two times greater

than your stop

loss now let's understand the conditions

for entering a short trade entering a

short position is the exact opposite of

entering a long position first the price

action must be trading below the white

line which indicates a bearish trend

however at the same time it should be

above the oversold Zone next down here

we should look for bearish crossovers

above the center line Additionally the

center line dots should also be red

further supporting the bearish trend if

all of these conditions are met you can

take a short position we will open a

short order at the opening of the next

candle you can place your stop loss just

above this purple shading or at the

white line as for your Target aim for a

profit that is two times greater than

your stop

loss let's look at some examples to help

you understand as you can see here the

price is trading above the white line

indicating a bullish Trend additionally

it is below the overbought Zone moving

on we have a bullish crossover below the

center line which serves as a buying

signal moreover the center line dots

have already turned green further

supporting the bullish Trend so all the

rules are met on this candle we will

enter a long trade at the opening of the

next candle I set the stop loss just

below the blue shading and our take

profit would be two times greater than

the stop

loss here we have a bullish crossover

below the center line which indicates a

Buy Signal additionally the price is

below the over over bot Zone and above

the white line further confirming a

bullish Trend however it's important to

note that the center line dots are red

indicating a bearish trend so this Buy

Signal is not valid let's see some more

examples here the price is trading below

the white line indicating a bearish

trend additionally it is above the

oversold Zone moving on we have a

bearish crossover above the center line

which serves as a selling signal

moreover the center line dots have

already turned red further supp

according the bearish trend so all the

rules are met on this candle we will

enter a short trade at the opening of

the next candle I set the stop loss just

above the white line and our take profit

would be two times greater than the stop

loss here we have another bullish

crossover above the center line which

indicates a sell signal the price is

trading below the white line indicating

a bearish trend additionally it is above

the oversold Zone furthermore the center

line Dots here are also red supporting

the bearish trend so all the rules are

met on this this candle we will enter a

short trade at the opening of the next

candle I set the stop loss just above

the white line and as you can see our

stop loss is hid in this

trade here the price is trading above

the white line indicating a bullish

Trend additionally it is below the

overbought Zone moving on we have a

bullish crossover below the center line

which serves as a buying signal moreover

the center line dots have already turned

green further supporting the bullish

Trend so all the rules are met on this

candle we will enter a long trade at the

opening of the next handle I set the

stop loss just below the white line and

our take profit would be two times

greater than the stop loss please

remember that the strategy shown in this

video is to demonstrate the indicators

and how to use them not extensively

backed again nothing in this video

should be taken as Financial advice this

is purely for informational purposes so

thank you guys for watching and if you

like the video then be sure to subscribe

to our channel so that you don't miss on

any of our new videos I'll see you in

the next video