Daily Trades ​System Methods
Module 2

​Congratulations.

Now we have the basics down. Let's start stepping it up a notch and show you how to apply indicators to the charts and how to locate buy and sell opportunities.

I'm really excited to show you this section and module 3, there are some real killers of strategies here, very powerful!

Just one note before we move on. Always, always get that confirmation. No confirmation of a trade entry MEANS: DO NOT TRADE! Wait for another stronger signal!

​Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force.

This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price.

If you realize that Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.

To apply this indicator to your charts, locate the navigation panel and it should be the first indicator listed.

Click your left mouse button to highlight this indicator and while holding down the left mouse button and drag onto your charts then let go.

Then study the formations as they appear in a live environment and see how you get on.

Remember: never buy into a resistance level and never sell into a support level keep this in mind throughout the entire course. 

​Alligator Technical Indicator is a combination of Balance Lines (Moving Averages) that use fractal geometry and nonlinear dynamics.

The blue line (Alligator's Jaw) is the Balance Line for the timeframe that was used to build the chart (13-period Smoothed Moving Average, moved into the future by 8 bars);

The red line (Alligator's Teeth) is the Balance Line for the value timeframe of one level lower (8-period Smoothed Moving Average, moved by 5 bars into the future);

The green line (Alligator's Lips) is the Balance Line for the value timeframe, one more level lower (5-period Smoothed Moving Average, moved by 3 bars into the future).

The best way to use the alligator indicator is to wait for the candles to touch the moving averages or in this case the alligator's jaw, alligator teeth, alligator lips.

The further away price action (current market price) is away from the alligator's lines the less strength/movement will be seen.

​The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a group of directional movement indicators that form a trading system developed by Welles Wilder.

Wilder designed ADX with commodities and daily prices in mind, but these indicators can also be applied to stocks and forex.

The Average Directional Index (ADX) measures trend strength without regard to trend direction.

The other two indicators, Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), complement ADX by defining trend direction.

Used together, chartists can determine both the direction and strength of the trend.

This is probably one of my favorite indicators.

The ADX line, the solid line in this case is your ADX.

The positive and negative direction index dictate in which direction the trend is heading towards.

The ADX is your strength indicator.

The greater the volume the stronger the trade, or the potential move in the said direction of the trend.

A volume of 30 or higher is considered a good trade.

Works extremely well in larger time frames. Also works well to work out when to close trades on lower time frames.

​This indicator has probably got to be one the most difficult ones to use on its own. I would not blame you if you skip this. Or if you did not practice using this video.

However later on I will show you how to use it properly.

​Bulls power and Bears power; the bulls and the bears struggle defines which way will the price move.

Due to assessment of the bulls and the bears powers balance, the indicator enables to forecast possible change of trend.

Like the Bears Power, the Bulls Power indicator was designed by Alexander Elder, who described it in more details in the "How to play and to win on the market".

The indicator is based on the difference between the maximal rate and 13-period exponential moving average (H - EMA). Bulls Power is mostly used in combination with moving average or another trend indicator.

The sell signal appears once the trend indicator has a decelerating direction and the bulls power indicator is above the zero level and is decreasing.

​Bollinger Bands are a technical trading tool created by John Bollinger in the early 1980s.

They arose from the need for adaptive trading bands and the observation that volatility was dynamic, not static as was widely believed at the time.

The purpose of Bollinger Bands is to provide a relative definition of high and low. By definition prices are high at the upper band and low at the lower band.

This definition can aid in rigorous pattern recognition and is useful in comparing price action to the action of indicators to arrive at systematic trading decisions.

Bollinger Bands consist of a set of three curves drawn in relation to securities prices. The middle band is a measure of the intermediate-term trend, usually a simple moving average, that serves as the base for the upper band and lower band.

The interval between the upper and lower bands and the middle band is determined by volatility, typically the standard deviation of the same data that were used for the average.

The default parameters, 20 periods and two standard deviations, may be adjusted to suit your purposes. The Bollinger band you should try and practice quite often.

There are several techniques you can use, for instance; wait for price action to reach the top of the Bollinger band and to reverse towards the middle of the Bollinger band and to bounce back using the previous high as your target.

Other techniques can be used by using candlestick formations i.e. the hammer which appear at the bottom of trends, then take the breakout of its previous close and or a conservative approach to wait for the next candles confirmation.

Candle formations is discussed in module 4. It's an eye opener.

​The Commodity Channel Index (CCI) is a versatile indicator that can be used to identify a new trend or warn of extreme conditions.

The Commodity Channel Index shouldn't really be used on its own.

Ideally you need to use other indicators to make it work for you.

However, you can use line studies for breakouts, or you can just use a traditional breakouts of particular default levels.

​The demarker isn't the best indicator to use.

Although in the video example I illustrate how you can find buy and sell signals, your best bet really is to use line study breakout similarly to the commodity channel index (CCI).

​Envelopes; there are quite a few ways to use the envelopes indicator, in this video I show you one method how you can locate buy and sell opportunities and the techniques used to filter out any possible losses.

​The Fractals indicator is a pretty good one to use.

It depicts supply and demand levels, and is also handy to plot Elliott wave analysis onto your charts as well.

The best way to use the fractals indicator is to wait for a breakout where the fractals appear.

​A very complicated indicator to use, however to grasp the main elements how this indicator works to spot buy and sell opportunities it is best to focus on one section at a time.

This indicator is best used on larger time frames such as the one-hour timeframe the four-hour timeframe and the daily timeframe.

​MACD; Moving Average Convergence Divergence, its as the name sounds.

This indicator will allow you to find convergences and divergences in the markets.

Convergences when found you can expect the market to drop. And vice versa for any divergences found.

This video shows you some methods that you can use.

​The Momentum indicator is another indicator that you can use to find overbought and oversold levels, and you can use line studies for breakouts.

​Money Flow Index; now the money flow index is another overbought or oversold indicator.

Other than using the default levels I have incorporated two more levels 45 and 55.

I found these to be far better than the standard settings. Watch the video to discover how you can create stable investments.

​The moving averages is a lagging indicator some people tend to use it to find which direction the trend is going in.

Some people use it as a penetration signal indicator, some people use it as a floating support / resistance indicator.

In up and coming videos I'll show you some other ways to use it.

​Moving Average of Oscillator; osma as it's better known is similar to the moving average divergence convergence indicator.

​The parabolic SAR basically means "stop and reverse". As the name sounds when the market goes up it stops and then it reverses.

It's best said to act on the parabolic SAR after the second period.

However this indicator is not very reliable and is hardly used by any trader... Professional traders at least.

​The relative strength index is also another overbought and oversold indicator and is commonly used by many traders.

The RSI is also able to show you divergences and convergences it is a very powerful indicator when used properly.

​Once more this is also a overbought and oversold indicator and is just as powerful as the RSI indicator.

The stochastic oscillator doesn't show many convergences and divergences but when they do the normally profitable.

Obviously you'd need to keep your wits about you before entering a trade.

However its good for scalping too, for the most part and as you gain more experience using it, it's like writing your own paychecks for the day. The ADX is also a good one to use this along side with.

​This video discusses a few of the indicators that we haven't discussed yet. I've included them all in this video because they are rarely used by myself or by others and for the most part can be skipped.