Futures Trading, Best trading leading indicator for crypto
Summary
TLDRThis video introduces the 'Control Indicator,' a sentiment-based tool for trading futures markets, previously exclusive to exchanges and brokers. It reveals the ratio of long to short positions, offering insights into market sentiment. By identifying significant discrepancies in these positions, traders can make contrarian moves, potentially profiting from the majority's misjudgment. The indicator, which doesn't trigger frequently, requires monitoring to spot opportunities and is complemented by a free course on derivatives trading available on YouTube.
Takeaways
- π The video introduces a leading indicator for trading the Futures market, which was previously only available to exchanges and brokers.
- π This indicator is now accessible for free thanks to decentralized trading protocols.
- π The indicator is called the 'control indicator' and is sentiment-based, meaning it relies on the behavior and opinions of traders.
- π The term 'contrarian' is defined as someone opposing or rejecting popular opinion, especially in stock exchange dealing.
- π The control indicator can be used by observing the open interest in long and short positions and identifying significant discrepancies.
- π The majority of traders (over 95%) tend to lose money, suggesting that going against the majority can be profitable.
- π The video references a specific live stream on November 27th, where a significant discrepancy in open interest was observed, leading to a market drop.
- π The control indicator does not provide signals frequently, but keeping an eye on the stats can help spot trading opportunities.
- π A high ratio of long to short positions (or vice versa) can signal a potential market reversal, which can be used as a trading opportunity.
- π The video mentions a free course on YouTube for those unfamiliar with trading derivatives.
- π The presenter offers links to join a Discord group and use the same trading platform as them for further trading insights and community.
Q & A
What is the main topic of the video?
-The main topic of the video is about using the 'control indicator' as a leading indicator for trading in the Futures market.
Why was the information discussed in the video previously only available to exchanges and brokers?
-The information was previously only available to exchanges and brokers because it involved seeing how many people were going long or short and where they were placing their stop losses, which was not accessible to the general public.
What does the term 'contrarian' mean in the context of trading?
-In the context of trading, 'contrarian' refers to a person who opposes or rejects popular opinion, especially in stock exchange dealing.
How can the control indicator be used as a trading strategy?
-The control indicator can be used as a trading strategy by identifying a high discrepancy in the ratio of long to short positions, suggesting that the majority of traders are wrong, and then trading in the opposite direction.
What is the significance of the open interest in long and short positions?
-The open interest in long and short positions is significant because it shows the number of contracts that are open and have not been closed or delivered, which can indicate market sentiment and potential future price movements.
What was the discrepancy in open interest between long and short positions on the 27th of November 2022?
-On the 27th of November 2022, the discrepancy in open interest was approximately 170 million in long position and only 58 million in short position.
How did the market react to the high discrepancy in open interest on the 27th of November 2022?
-The market reacted by dropping heavily, as the majority of traders were bullish, and the market did the exact opposite, serving as a confirmation of the control indicator's effectiveness.
What is the recommended ratio or discrepancy for using the control indicator effectively?
-The recommended ratio or discrepancy for using the control indicator effectively is at least two to three or four times higher than the other number of long or short positions.
How often does the control indicator provide trading opportunities?
-The control indicator does not provide trading opportunities frequently; it might come once in two weeks, so it's important to keep an eye on the stats for spotting opportunities.
What additional resources does the video offer for those interested in trading the derivatives market?
-The video offers a dedicated free course on YouTube for those interested in trading the derivatives market, as well as links to join a Discord group for further trading insights and community.
Outlines
π How to Use a Free Leading Indicator for Futures Trading
This video introduces a powerful, free-to-use leading indicator for trading in the Futures market. Historically, access to this data was limited to exchanges and brokers, who could track traders' positions, but thanks to decentralized trading protocols, this information is now available to all. The indicator, called the 'control indicator,' helps traders by showing the sentiment in the marketβhow many traders are going long or short and where they place their stop losses. The key concept discussed is that the majority of traders often lose money, so by doing the opposite of the popular opinion, one can gain an advantage in the market. The video references a live stream from November 27, 2022, where this indicator accurately predicted a market drop by analyzing the disparity in long and short positions.
π Free Course on Derivatives Market Trading
The second part of the video offers viewers access to a free course on how to trade in the derivatives market, available on YouTube. The course is designed for those who are unfamiliar with derivatives trading. The presenter also invites viewers to join their trading community via Discord, which will soon be available. Additionally, viewers are encouraged to follow along with the presenterβs trades by using the same broadcasting software, with links provided in the video description. The video concludes with an expression of gratitude and a promise of more helpful content in future videos.
Mindmap
Keywords
π‘Futures Market
π‘Control Indicator
π‘Sentiment Analysis
π‘Contrarian
π‘Open Interest
π‘Long Position
π‘Short Position
π‘Discrepancy
π‘Derivatives Market
π‘Decentralized Trading Protocols
π‘Trading Opportunity
Highlights
The video introduces the 'Control Indicator' as a leading indicator for trading the Futures market.
Historically, the data for the Control Indicator was only accessible to exchanges and brokers.
Decentralized trading protocols have made this data available to the public.
The Control Indicator is a sentiment-based indicator, meaning it opposes or rejects popular opinion in trading.
Using the Control Indicator involves analyzing the ratio of long to short positions in the market.
A high discrepancy in long vs. short positions can signal a market reversal.
The video demonstrates how a high open interest in long positions can lead to a market crash due to the majority being wrong.
The Control Indicator can be used to make contrarian trades against the majority of traders.
The indicator does not provide signals frequently, but keeping an eye on the stats can reveal trading opportunities.
A significant ratio of long to short positions, such as 3:1, can be used as a signal for contrarian trading.
The video provides a real-world example of using the Control Indicator from a live stream on November 27th, 2022.
Market crashes can be predicted by observing when the majority of traders are overly bullish.
The video emphasizes the importance of doing the opposite of what the majority of traders are doing for success.
The presenter offers a free course on YouTube for those interested in trading the derivatives market.
Viewers are encouraged to join a Discord group for more trading insights and community interaction.
The video concludes with a reminder of the importance of understanding market sentiment and the derivatives market.
The presenter thanks viewers and invites them to watch future videos for more trading strategies.
Transcripts
in this video I share with you the best
leading indicator when it comes to
trading the Futures market and the best
part about it it's all for free you see
for a very long time this information
was only available to you know exchanges
and Brokers they could see how many
people are going long and how many
people are going short and where exactly
they're putting in their stop loss and
we couldn't really access the
information and use it to our advantage
until now thanks to decentralized
trading protocols we can now see all
this data and in this video we're going
to be looking at this data and looking
at how can we profit from this
information by using this as a leading
indicator when it comes to trading the
Futures Market the name of this
indicator is called control indicator
now if you come to indicators here on
your charting software and come here to
type controlion
and you realize that the indicator is
not dead and that is simply because this
is a sentiment based indicator what does
that mean in order for us to really
understand what we're getting into here
let's first look at the definition of
the word contrarian now the definition
of the word contrarian means that a
person who opposes or rejects popular
opinion especially in stock exchange
dealing let's look at the adjective that
says opposing or rejecting popular
opinion or current practice so how can
we use this control indicator when we're
actually trading now it's actually very
simple because I already showed you this
indicator on my live stream and that
stream was on the 27th of November
basically just a couple of days ago and
on that stream I showed you the number
of open interest on long and short
position because that's exactly what
we're talking about here you can find
the ratio or the discrepancy within this
number as high as two to one or one to
three and we can use that as a
controlling in the cater because that
means the majority of people are
thinking something on the market where
else we should be doing the exact
opposite we already know that over 95
percent of Traders lose money on the
market so that means that a majority of
Traders on the market are in most cases
always wrong so if we do the exact
opposite of what the majority of Traders
are doing we most likely will succeed as
you can see now we can be able to see
the open interest and see how many
people are going along and how many
people are going short if we look at the
data right now if I come here
and maybe let's just come to this one
here you can see here we've got a short
position and long position but right now
you know the discrepancy is not that
high we've got 70 million and 45 million
however about a week ago as you can see
from this stream we had a total of about
170 million in open interest that means
in Long position and only 58 million in
short position
so I did tell you on this very stream
that this is a good indicator that now
the market is going to turn to the
opposite direction if we actually look
at the chart you can see here the date
was 27 of November in 2022. now if I
come to the charts here you can
basically just look at any assets from
here you can see if I scroll down here
you can see on the 27th of November you
can see that the market immediately
dropped
heavily you can see that it crashed
simply because a majority of Traders at
that time were very very bullish so the
market did the exact opposite remember
we said over 95 percent of Traders lose
money when trading so as a controlling
indicator what we do is that we do the
exact opposite if we find this number to
be way way higher than the other number
so how do we use a controlling indicator
it's very simple we're basically looking
at long position and short position and
if the discrepancy between these two
number or the ratio is way too high for
example if we look at this stream here
at that time we had 127 million in Long
position with only 58 million in short
position as we said before in most cases
the majority of Traders are always wrong
so once the number of long and short
position has a ratio of you know three
times the opposite of the number that's
when we can use that to our advantage
and do the exact opposite of what
majority of Traders us are doing so
that's what I wanted to bring to your
attention obviously this indicator
doesn't you know flash every time so it
will come maybe once in two weeks but
the more you keep an eye on these stats
here that's when you can actually be
able to spot this trading opportunity
and maybe jump in when you see a big
discrepancy between the two numbers and
then you can make money with doing the
exact opposite of what the majority are
doing but just remember that the number
has to be at least two to three or four
times higher than the other number of
long or short position that's when you
can actually use this indicator to
either go long or go short on the market
and obviously it helps to know the
overall sentiment of the market and
having a clear understanding of how to
trade the derivatives Market if you have
no idea of how to trade the derivatives
of Market well you are lucky because I
have a dedicated course which is
absolutely for free right here on
YouTube and you can find it showing up
on the pop-up right now if you want to
trade alongside with me always use the
links in this option of this video to
the broadcast that I'm actually using so
you can also use that to actually join
our Discord group more information about
that is coming soon or maybe by the time
you're watching this I would have
published the Discord group server as
well so thank you so much for watching I
will see you guys on the next one and
hopefully you'll find this video very
very helpful and I will see you on the
next video goodbye for now
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