LEARNING INDEX
Here you will find all about our Indicators and how to use them together to create powerful Trading Strategies.
I. Indicators Descriptions
Here you will find a complete description of each of the subindicators that compose our trading strategies.
II. Trading Strategies
How to use our Indicators together to create powerful trading strategies.
III. Others
Setup and additional material
Indicators Descriptions
Support and Resistance Lines
Very similar to the horizontal levels, however these lines adapt to the price structure based on fibonacci levels and recalculate periodically.
Use it to:
Set trade targets
Set a stop loss
Double check when entering a trade (i.e: don't enter a long if price is just below a line)
For a full understanding of the "Support & Resistance" concept check this article from Investopedia: article
Reference Image:
How to active it (under Trend Rider Algo #1 Settings)
Trend lines serve as support and resistance for the current trend.
When Price is above line then the trend is bullish
When Price is below line then the trend is bearish
Regarding the colors:
Orange Color = Trend is currently bullish, line acts as a support.
Blue Color = Trend is currently bearish, line acts as a resistance.
Use it for:
Take profits (i.e: if you long during a downtrend and the price goes up and touches blue line, that is a good level to take profits)
Add to a long when price touches lines (for example if you during an uptrend, and price goes down and touches the orange line, that is a good time to add to your position or enter the trade with tight stop loss)
Reference Image:
How to add Indicator (under Trend Rider Algo #1 settings)
This is a fully automated support and resistance indicator that can be used to identify strong support and resistance levels which can be used for:
Set trade targets
Set a stop loss
Double check when entering a trade (i.e: don't enter a long if price is just below a line)
For a full understanding of the "Support & Resistance" concept check this article from Investopedia: article
Indicator Reference Image:
How to activate it (Under Trend Rider Algo #1 Settings)
New trendline looks for at least 2 HH or LL pivots. If the trendline is crossed then it dissapears.
Lines are extended to the right so you can project at what price level it could break in the future.
Orange Line= support trend line
Blue line= resistnace trendline.
🚨Recommendation: Use this together with the horizontal S/R lines, enable fib and trend line only analysis.
Bull and Bear Label try to predict when a trend is shifting direction.
For the BULL signal there are 3 types of signals, the type of signal depend on the number of indicators that are bullish at that time, in other words when a "Strong BULL" signal appears it means that most of our indicators are bullish at that time:
LIGHT BULL
BULL
STRONG BULL
For the BEAR signal there are 3 types of signals, the type of signal depend on the number of indicators that are bearish at that time, in other words when a "Strong BEAR" signal appears it means that most of our indicators are bearish at that time:
LIGHT BEAR
BEAR
STRONG BEAR
Extra:
"Careful long" message: it appears together with a bull signal if the asset is overbought, when this happens it is better to wait for the price to come down to support first before opening a long.
"Careful short" message: it appears together with a bear signal if the asset is oversold, when this happens it is better to wait for the price to go up to resistance first before opening a short.
TIP: Bull and Bear labels are specially important for the most volatile asset like altcoins. Be extra careful while longing an alt while a bear signal is active (see Solana Reference image below)
Reference Image: Signals for Bitcoin
Reference Image: Signals for Solana
Reference Image: How to activate indicator
Indicates when a bearish or bullish divergence appear, we use it as a take profits signal. This is the main indicator for the "Anticipation Strategy". First, what is a divergence? Basically, it happens when the price is going in a direction and the oscillator (indicators) is going the opposite way. When this happens the chances for the price to go sideways or revert direction is higher, that is why we use it this indicator to take profits during an uptrend and to open positions during a downtrend. About the type of signals
· “Take Profits’ : appear above the price when a bearish divergence is present.
· ‘Strong take profits’: appear above the price when a bearish divergence is present and the asset is overbought.
· ‘Probable bounce’: appears below the price when a bullish divergence is present.
· “Potential reversal”: appears when a bullish div is present and the asset is oversold.
On settings you can choose to use regular and/or hidden divergences as input for the signals. Personally, I enable only regular divergences.
Only enable hidden divergences if you want to trade more frequently and take profits more often.
Reference Image
Reference Image
How to activate the indicator. Also note that you can change the size of the signals on the same settings menu.
To activate hidden divergen as input for the signals go to the option "Divergence Type"
Rider Band is one of my favorites indicators as it provides you a lot of precious information in one glance.
It can be used to:
Quickly understand trend direction
Support and resistance levels that work extremely well during bounces and corrections.
For example, while we are in a bullish trend, the price tends to come back and bounce on the Rider Band Upper limit. The opposit happens dureing a downtrend (check reference Image)
Detect when an asset is overbought/oversold using RB Trend Fill Over Levels indicator.
About the band colors:
Yellow= Bullish Trend
Gray = Neutral trend
Blue = Bearish Trend
TIP: For identifying trend purposes, Rider Band colors are more effective on the daily and weekly charts. For most cases , specially on crypto, if you buy when it flips orang and close when it flips blue the return over time is much higher versus just holding.
RB Trend Fill Over Levels colors:
Red: Asset is overbought
Green: Asset is oversold
Reference Image: Rider Band trend colors
Reference Image: Rider Band trend colors and overbought/overzone colors
Reference Image: How to identify bounces and corrections supports and resitances
Here you can see how the Band upper limit acts as the first important support during a correction. On the other hand it's lower limit acts as the first important resistance during a bounce.
Reference Image: How to activate Rider Band (Trend Rider Algo #1 settings)
Aims to detect early trends change faster (usually before the bull/bear labels). The color and shape of the indicator determines the detected trend.
Symbols:
Orange Circle: Bullish trend
Blue Cross: Bearish trend
I personally use this indicator for profit taking rather than for entries. For example, if I am in a long and a X appear, i reduce my position.
Reference Image
Reference Image
1. Warning/Attention : This signal appears when there are signs that the trend may change in the short term and the asset is overbought/oversold.
About signal colors :
Warning = bearish
Attention = bullish.
tip : Specially powerful on the weekly time frame, it has predicted previus bitcoin bottoms
2. M : This indicator appears when the short-term trend may change.
About signal colors :
Blue color = bearish
Orange color = bullish.
⚠Recommendation⚠ Use the "M" indicator in complement with the others, since by itself it is not strong enough.
3. What is the difference between Warning/Attention signal and take profit/bounce signals?
Take profit and bounce signals are more powerful, since in addition to the chance of a changing moment, other variables such as bullish or bearish divergences are added at the same time, the best way to use these indicators is together.
for instance:
A very good opportunity to enter a long would be when a +Attention signals and bounce signal appears plus price is near a support line and for shorts when a Warning/Attention signals and take profits signals appears near a resistance line.
Attention signal and Bounce signals near a support line
Warning signal and Profits signals near a Resistance
+Attention Signals and M Signals are inside Trend Rider Algo #1.
Introduction
Discover a powerful tool that anticipates market corrections or rebounds with impressive probabilities: The Super Signal. This tutorial will guide you through its purpose, functionality, and effective usage.
What Is The Super Signal?
The Super Signal is a robust, new indicator that identifies confluences within our signals, thereby offering high probability anticipation of market corrections or rebounds.
Its Purpose
The Super Signal helps in identifying swift entry opportunities for long or short positions. It doesn't primarily aim to detect trend changes, although some rebounds following a Super Signal could potentially become a trend change.
Locating The Super Signal
Within the Rider Algo #1, simply enable the "Show Super Signal" box to access the Super Signal.
Elements Of The Super Signal
Super signal: It appears once the conditions align correctly. It is expressed as green circles for a bullish signal and red for a bearish one. The number of circles (1 to 3) indicates signal strength—more circles mean a stronger signal.
Display SS Stop loss: The algorithm suggests a stop loss by identifying the highest and lowest points within a specified period before the Super Signal.
Display SS Accuracy table: This table provides the success percentages of bullish and bearish Super Signals, along with valuable information on the price variations after a successful signal.
Display SS markings: Adds an additional label on the chart when a Super Signal appears.
Show Success and Avg. delta lines: These lines indicate the price levels at which a Super Signal would be considered successful and the average price level reached after a successful signal.
SS Accuracy Table Position: This allows you to change the position of the Accuracy Table on the chart.
Understanding The Accuracy Table
The Accuracy Table includes several elements:
# of SS: Number of Super Signals ever printed on the selected asset and timeframe.
Accuracy: The percentage of those signals that met the price delta criteria without touching the Stop Loss.
Average upside: The average historical price increase (or decrease for bearish signals) after a successful signal.
Price delta criteria: The percentage that the price should change to be considered a successful signal. This value varies with the asset and timeframe, providing a single criteria for each asset combination, rather than a random hand-picked number.
Best Practices
Integrative approach: Combine the Super Signal with other indicators such as Horizontal Support and Resistances (Algo #1), Trend Support and Resistance (Algo #1), Rider Band (Algo #1), and Volume Profile (Algo #2) for best results.
Ideal scenario: Seek ideal scenarios to increase your success ratio. For instance, price close to support (for longs) or resistance (for shorts), medium-large gap between price and Rider Band/Trend Support & Resistance, and thin/gray Rider band if price is close to the band.
Order types: Try using limit orders or partial orders if the stop loss is too far from the close price of the candle with the Super Signal, especially if the setup is not ideal.
Locking profits: Once the signal is successful, secure your profits by moving the stop loss or closing a portion of the trade.
By integrating the Super Signal into your trading strategy, you can leverage high-probability entry points to maximize your trading success.
Rider Algo #2
This indicators is the same as the Fib Lines, however this version fills the gap between lines with colors, turning the lines into price channels.
The channels give us a clear perspective on where is the asset related to it's price structure.
This indicator is our main indicator for a DCA strategy.
The most important channels are:
Dark Green Channel or "Uptrend" Channel: While price is here it tends to keep trending up, so longs are more profitable. Also this is not a good level for DCA (dollar cost average) , instead lock profits and watch out for previous record highs as they will act as a strong resistance. Once the price exits this channel a possible bearish macro trend may begin.
Dark Red Channel or "Downtrend" Channel: exactly the opposite than the dark green. Focus on shorts, very careful with altcoins and agressive profit taking.
Reference Imagen
These indicators will show you if the price is overbought and oversold.
When overbought :
Price above blue line.
Price can continue going higher even if the asset is over bought, however if price closes below blue line again chances for the price to continue going down and test support are high (specially if there was a Warning or take profit signal right before)
When oversold :
Price below orange line.
Price can continue going lower even if the asset is over sold , however if price closes above orange line again chances for the price to continue going up and test resistance are high (specially if there was a Atenttion or bounce signal right before)
References images
This table shows you in a time interval which was the highest price and draws an equivalence according to the current price.
This indicator shows the price ranges in which the greatest amount of volume is traded for a specific asset, when we find an area with high volume it will act as support or resistance for the price.
This indicator is programmed to consider the last 365 candles, which can be edited in the indicator settings.
The highest Vol. line indicates the exact price range with the highest volume traded in the last 365, this line would change color when the price is below the line the color would be red acting as resistance and above the line the color would be green acting as support.
Tip : this indicator helps us to find accumulation zones, if an asset is in a high volume zone for a long time, the next movement that will have a high chance of being the start of a big movement up or down.
Volume zone acting as resistance (blue line in this case = red line)
Volume zone acting as support (orange line in this case = green line)
This indicator is inside TR ALGO #2
The “Trend strength” indicator is used to detect how strong the current trend and if it is gaining momentum.
Symbols:
Yellow UPWARDS triangle: Uptrend
Orange UPWARDS triangle: Strong uptrend
Light Blue DOWNWARDS triangle: Downtrend
Dark Blue DOWNWARDS triangle: Strong downtrend
This is a lagging indicator, meaning that it usually flips bullish or bearish after other indicators.
TIP: For trend confirmation wait for two consecutive triangles on the same direction or a darker color triangle.
Reference Image
Reference Image
The Divider Band is composed by the 21WEMA (green line) and 200SMA (red line) , 2 key moving averages that determine if we are in a bullish or bearish market.
Also we have noted that when green line crossover the redline a bullish cross occurs and chances for price to start trending upwards on the long term are high.
What is included on this indicator:
21W EMA
200D SMA
Cross over bars
Color fill when price is above/below band.
Buy and Sell crossover markers (use it on 1W or above TF)
NOTE:
- the divider band does not change when you change timeframe, will stay always at the same levels.
Reference Image
This indicator is inside TR ALGO #2
bjective: Signal potential longs and shorts on the same direction of the current trend.
Basically the idea is to catch bounces during a bull trend and rejections during a bear trend.
The key difference with our take profits and bounce signals is that TP and PB usually goes against the trend, so this "Continuation Strategy" is a perfect complement.
Notes about the indicator:
Red Candle: Pontential Short
Green Candle: Potential Long
This indicator is better used together with the "M" signals from Rider Algo #1.
Pay attention to the first candle that changes color, that is the leading signal, if you miss the entry and a second candle appears with the same color you can enter trade but only if the candle is on a better position versus the leading candle (ejm: for a short if a second candle appears above the leading candle then is a better risk/reward)
IMPORTANT: make sure to remove trend rider algo #2, refresh browser and add it again to your chart to see the latest version This indicator is better on lower timeframes for scalping.
Reference Image
Indicator looks for swing and internal pivot points on the chart and draw colored boxes.
Light green: Bullish Pivot
Green: Strong Bullish Pivot light
Red: Bearish Pivot
Red: Strong Bearish pivot.
Bullish Pivot are good areas to start looking for longs. - Bearish Pivot are good areas to start looking for shorts. Remember : To access indicator just remove Trend Rider algo #2, refresh browser and add it again.
Trend Indicators
How to add this indicator? Add it to your favorites using this link:
https://www.tradingview.com/script/qc1i0MVc-Trend-Rider-Macro-View/ Introduction
Welcome to the Trend Rider Macro View Indicator Tutorial. This indicator provides a comprehensive, macro-level view of the market, allowing you to easily identify market tops and bottoms, understand the current trend, and gain a competitive edge in your trading.
What is the Trend Rider Macro View Indicator?
The Trend Rider Macro View is a unique combination of indicators designed to provide an overarching view of the market floors and ceilings of a particular asset, along with insights into the current price trend. While primarily designed for Bitcoin and the 1D timeframe, it can be applied to other assets and timeframes with discretion, ensuring the levels align logically, especially the top and bottom levels.
Extras Included in the Indicator
The Trend Rider Macro View Indicator is bundled with several valuable features:
TR Sentiment: (horizontal bar at the bottom) An innovative adaptation of the fear and greed indicator. Shades of pink and purple denote extreme fear, while light and dark blue colors represent extreme greed. It's crucial to compare what the price did historically when these colors appeared, as they often present unique long-term buying and selling opportunities.
Impulse Colors: (hidden on the indicator settings) This feature uses colors to indicate how far the price deviates from key moving averages. This insight helps identify repeatable patterns, signaling possible trend initiation points or revealing an asset that is significantly distanced from its average.
Moving Average Master: (hidden on the indicator settings) Temporarily housed within the Macro View, this trend indicator uses colors to represent the current trend, while displaying key levels that may serve as support or resistance.
By using the Trend Rider Macro View, you can gain an all-encompassing understanding of the market landscape, empowering you to make well-informed trading decisions based on extensive data.
Moving Average Master
Impulse colors subindicator
TR sentiment color scale
Reference Image: (optional)
For specific asset you can change the average lines here, if you don't find the asset then DISABLE the the lines by unchecking the "Plot theorical...." box.
Special Indicators
This is the most complex one of our 4 main trend indicators as it composed of different elements.
1. Momentum Wave: shows when an assets strength is increasing or decreasing. Momentum Waves can also be used to easily spot divergence price action.
2. Momentum Circles: They appear when the Momentum wave appear to be changing direction to the opposite way.
Attention = High Bullish shift chances
Orange dot = Bull shift chances
Blue dot = Bear shift chances
Warning = High Bearish shift chances
3. Money flow line : Orange indicates money flowing in and blue indicates money flowing out.
4. Overbought and Oversold areas:
When momentum wave is inside or above the Overbought area the chances for a price reversal are high, specially if a blue circle appears.
When momentum wave is inside or below the Oversold area the chances for a price reversal are high, specially if an orange circle appears.
Overall the Trend Oscillator serves as a complement to Trend Rider Algo #1 as the circles/dots serve as confirmation and confluence to other indicators. (see "Anticipation Strategy" tutorial)
Reference Image: to add the indicator first you need to add it to your favorites by using the links provided on the "Indicators Links" page.
Trading Strategies
Trend Shift Strategy
About strategy: This strategy is based on detecting when there are high chances that a trend change is confirmed in order to enter the markets and then anticipate possible corrections to reduce our positions or exit completely. Ideal Timeframe: 1W chart (can work on lower timeframes with less reliability)
Trading Style: Long term investors with not much time to trade. This strategy uses the following indicators:
Trend Rider Algo #1
Trend Rider Algo #2
If you do not know how to add these indicators , check our Setup page.
Also you can use the following trading view link to see an already customied view so you see it exactly as we do:
https://www.tradingview.com/chart/3y7bWcF4/
In case you want to add indicators manually, there are the ones:
This how it looks
Basically on this strategy we consider enter a trade when a BULL or BEAR label signal appears.
For LONGS (shorts work the opposite way)
Checklist before entering a trade:
Is the asset Overbought? Then wait for the price to come down and test a support.
Has the BULL signal appeared right below a resistance line? If so, wait for a close above the line or wait price to come down and test support.
Ideal supports to consider an entry if you decided to wait (specially if price is lower thant when the bull signal confirmed):
Green Key level area.
Trend Orange Support line
Horizontal Line support.
Rider Band
Note: Don't just enter when it reaches support, wait for at least a orange M above candle or/and a "probable bounce" signal and place a stop loss below support in case it is broken.
VERY IMPORTANT: NEVER GO ALL IN, always enter a trade only with a percentage of your portfolio. Determine the position size based on your risk profile and how much you believe on the fundamentals of the coin. What I do most of the time when entering a trade is to split the trade amount in 2 parts, so I protect myself if we go down short after we longed. First investment when bull signal confirms and the second one if the price goes down and reaches support.
ENTRY examples:
In this case bull signal appeared a little bit higher versus Rider Band so you can wait or enter partially then add again when orange trend line is tested with a stop loss.
2. In this case the bull signal appeared after a large move upwards and is still below band so you can enter partially and wait for a test of the horizontal lines or the orange trend line.
This is the most vital part of the process and is quite easy. Just reduce a percentage of your position when a Take Profits signals appears or one of the trend indicators flips bearish.
Example for Longs (the opposite applies for shorts):
If price reaches dark red area (key level subindicator) i reduce 50% of my position.
If price reached a light red area (key level subindicator) i reduce 30% of my position
If an "X" (trend hunter subindicator) confirms, i reduce 30% of my position.
If an inverted light blue or dark blue triangle confirms (trend strength indicator), I reduce (15-30%) of my position.
If a “Strong Take Profits” message confirms I reduce my position (15-30%)
If a “Take Profits” message confirms I reduce my position (10-15%)
If a "Warning" Signals appear I reduce (10-15%)**
If "BEAR" label confirms: Exit position completely.
These percentages are only suggestion, if you are already on big profits you can decide to exit completely once a take profit event occurs.
**Tip for warning signal: enable the blue rsi limit line on rider algo #2 when a warning signal appears. If price crosses down the blue line and close below then take profits.
NOTE: if you are on a long on low timeframe (i.e 1 hour chart) and the higher timeframe is bearish (i.e: 4 hours chart), reduce a higher percentage of your position or exit completely when a take profit signal appears or price reaches a major resistance as it is a riskier long.
Examples:
Here we use only Take profits messages to reduce our positions.
Here we use only Take profits messages and the bearish Trend Hunter “X” to reduce our positions.
Finally, let’s see an example of a failed long, where the Trend Shift strategy can help us to cut losses sooner and wait for another entry.
Here, no take profit signal appeared but we reduced our position when Trend Hunter “X” appeared and when Trend Strength went bearish (blue triangle)
Anticipation Strategy
About strategy: This strategy focuses on anticipating possible bullish or bearish movements before they occur. It is important to note that this does not necessarily anticipate a big change in trend so it is important to lock in profits and keep an eye on the charts. Due to the anticipatory nature of this strategy we must look for good entries and not chase a trade for any reason so we do not know if the movement is going to be small or large.
Ideal Timeframe: Works on any timeframe above 5m. As with all indicators the higher the timeframe the more accurate signals are.
Trading Style: Daytraders or active traders (not necessary full time if you use higher timeframes).
This strategy uses the following indicators:
Trend Rider Algo #1
Trend Rider Algo #2
Trend Oscillator
f you do not know how to add these indicators , check our Setup page.
Also you can use the following trading view link to see an already customied view so you see it exactly as we do:
https://www.tradingview.com/chart/S3Q6Zn01/
In case you want to add indicators manually, just check these subindicator's boxes.
Rider algo #1
Rider algo #2
Chart should look like this one:
For Longs (shorts work the opposite way):
Ideal Scenario:
Problable Bounce Signal
Orange "M" above bar or orange circle on Trend Oscillator on the same candle or 1-3 candles after the bounce signal.
Entry Close or at support lines or Key Levels Green area (ideally more than 1 line converging as support)
OK Scenario
Problable bounce Signal or Potential Reversal Signal
Orange "M" above bar or orange circle on Trend Oscillator on the same candle or 1-3 candles after the bounce signal.
Examples:
Probable bounce signal confirmed close to support, good entry.
2. In this case support was for from the candle with the bounce signal so it is a risky trade, if you decide to enter here make sure to have a tight stop loss and low leverage.
Placing a stop loss is a critical step on the Anticipation Strategy as we are trying to predict a move which has not yet happened.
For longs (shorts works the opposite way, we look for resistances and higher highs instead):
If there is a support line close to the probable bounce signal candle place the stop loss slightly below the support.
If there is no support close look for the last lower low candle and place the stop loss slightly below.
If there is no support or clear lower low, then do not enter a trade.
See examples below.
PRO TIP: If you are trading at the 1hour chart take a look at the 4 hour and daily chart and check for supports convergence for your stop loss. If there are multiple lines converging at the same level, then the support/resistance line is stronger.
Examples
In this case there is a clear support level where we can place our stop loss.
2. In this case there is no close support line, however there is a clear lower low price to use as reference
For Longs
Rider Band Lower Limit
Next resistance line
For Shorts
Rider Band Higher Limit
Next support line
PRO TIP: Manage your stop loss, if you think the trend will continue you can move your stop loss to lock profits.
Continuation Strategy
About strategy: This strategy seeks to anticipate bounces/rejection in the same direction of the current trend. When a possible bounce/rejection is detected the candles are colored.
Ideal Timeframe: Works on any timeframe above 5m. Ideal 15m ,1h, 4h.
Trading Style: Daytraders or active traders (not necessary full time if you use higher timeframes).
This strategy uses the following indicators:
Trend Rider Algo #1
Trend Rider Algo #2 (main indicator: "Show Trend Continuation Strategy"
VERY IMPORTANT: change your default chart candle colors to others than red and green.
Here is a customized chart link in case you want to copy it: https://www.tradingview.com/chart/ACdgUn3a/
This is how it looks :
See a complete training video for this strategy here You want to enter a trade when:
For longs:
- A green candle appears, first one is the "leading candle", if more candles green candles appear after, those are "continuation candles" - Stronger entry: if there is an orange "M" above bar or a "Probable Bounce" signal active.
For Shorts:
- A red candle appears, first one is the "leading candle", if more candles red candles appear after, those are "continuation candles"
- Stronger entry: if there is an blue "M" above bar or a "Take Profit" signal active.
To increase winning ratio:
- Wait for candle confirmation (closed candle). - Before deciding to enter it is very important that you evaluate where your stop loss should be, if it is too far then wait for a better entry.
- Place limit orders at near Support/Resistance instead of buying inmeadiatly.
- DO NOT CHASE: if you missed the entry only enter if a continuation candle closes lower (for longs) than the leading candle.
- LOCK PROFITS: This indicator does not anticipate a trend shift, only trend continuation.
Shorts examples:
Long Examples:
Failed trades:
Of course indicator does not work all the time, as said before is very important to manage your stop loss.
Long term DCA and Reduce strategy
Indicators used:
Trend Rider Macro View
TR Fib Perspective
Use Daily Timeframe
DCA means "Dollar Cost Average" and it is ideal if you don't have time to trade and believe in an asset for the LONG TERM.
This strategy will help you to identify when an asset price structure is at it's lowest and where a possible bottom might be. Using this knowledge you can start accumulating for the long term with a better average price.
So for DCA we want:
- Price inside the dark red zone on our TR FIB perspective indicator
- Orange to Purple circle colors on our Macro View indicator
- Ideally price close to 200WSMA (find it on Macro View Indicator) , this does not happen often so it is optional.
Reference Image: Black boxes represent good time to DCA where all the criteria described above is met.
Indicators used:
Trend Rider Macro View
TR Fib Perspective
Use Daily Timeframe
BONUS TIP: also look for Take profits signals on the MONTHLY chart using our Trend Rider Algo #1 Indicator.
This process works the opposite than DCA
This strategy will help you to identify when an asset price structure is at it's Highest and where a possible TOP might be. Using this knowledge you can start reducing your long term positions gradually to make sure you lock profits.
So to indetify this zones we want:
- Price inside the dark green zone on our TR FIB perspective indicator
- Light or Dark Blue colors on our Macro View indicator
Reference Image: Black boxes represent good time to start reducing long term positions gradually.
Others
About strategy: This strategy is based on detecting when an asset is no longer oversold or overbought in order to enter a position. When an asset rises drastically we are tempted to go short, however we must wait for a sign of asset weakness first, this strategy helps us identify those moments. (works for both longs and shorts)
Ideal Timeframe: +15M - 4H TF
Trading Style: Ideal for daytrading
This strategy uses the following indicators:
Trend Rider Algo #1
Trend Rider Algo #2
If you do not know how to add these indicators , check our Setup page.
In case you want to add indicators manually, these are the ones:
Chart should look like this:
There is a signal that tells us when this trading setup meets the conditions to be able to enter a position.
Signals appear once the price crosses the blue and orange RSI limit lines. These signals will not appear every time since we have coded certain criteria to reduce fakeouts. However, it is impossible to code it perfectly for all different price action scenarios, so I recommend that you keep your RSI limits lines activated and be attentive in case the correct conditions occur and the signal does not appear. (see example below)
For longs: wait for a "Long RSI" signal
For shorts: wait for a "Short RSI signal
Note: there is another version of this signal "Long/Short RSI with limit order" this appears if the there is big candle when the signal confirms, in this case most of the time is better to wait for a retracement or set a limit order instead of market buy.
Ideal Scenario (LONGS):
"Long RSI" signal
Problable Bounce Signal
Orange "M" above bar or orange circle on Trend Oscillator on the same candle or 1-3 candles after the bounce signal.
Entry Close or at support lines or Key Levels Green area (ideally more than 1 line converging as support)
OK Scenario
"Long RSI" signal
Problable bounce Signal or Potential Reversal Signal
Orange "M" above bar or orange circle on Trend Oscillator on the same candle or 1-3 candles after the bounce signal.
TIPS: After a sudden drop in prices, we may have some fakeouts, so in most cases I prefer to wait for the price to calm down a bit and for signs of a probable bounce to appear.
Examples
In this case we had a perfect long RSI signal for a long.
2. This is an example where the signal for shorts did not appear but the conditions were met since the price crossed the blue line of the rsi limit marking an entry for short.
3. In this case, it can be seen that the candle where the signal appeared was very large and was not accompanied by a subsequent upward movement.
When I see this, I prefer to wait for the price to correct slightly to enter or in any case if I am watching it live while the candle is forming I can enter as soon as the signal appears with a tight stop loss (for this particular case there was an "attention" signal a couple candles before so we had to be ready for the move as soon as it crossed the orange line)
As this strategy is based on an asset no longer being oversold or overbought, it is invalidated if the asset is oversold/overbought again, that is why for our stop loss we are going to use the RSI limit line as a reference.
For Shorts: place SL slightly above RSI limit line (blue line)
For Longs: place SL slightly below RSI limit line (orange line)
Later , in case your are in profits, 2 or candles after confirming the entry signal it is recommended that they secure their profits by adjusting their stop loss level.
Example 1: Here we see a setup for a short where there is no higher high pivot to use as a reference, so we place the stop loss above the blue line.
Example 2
In this example there is a clear lower low pivot candle before it confirmed the rsi limit long signal, so we proceed to place the stop loss below said pivot.
For Longs
Rider Band Lower Limit
Next resistance line
Green Area Key Level
For Shorts
Rider Band Higher Limit
Next support line
Red Area Key Level
PRO TIP: Manage your stop loss, if you think the trend will continue you can move your stop loss to lock profits.
Examples 1. This is a classic example of a bullish movement after the signal that did not mark a trend change but a rebound.
There are several similar cases, so our first place to take profits is in the lower band of the Rider Band.
2. Here we see a similar case for a short. In this case the trade was more attractive due to the wide difference between the price when the signal appeared and the rider band.
Others
Hi Riders, here you will learn how to set up alarms on Trading View for our Trend Rider Algo #1 Indicator step by step and my favorite alarms.
Requirements: Trading View paid subscription. (they have a 30-day free trial)
Step 0: Add Trend Rider Algo #1 to the chart, and select the asset and timeframe you want for the alarm.
Step 1: Click on the "alarm" symbol
Step 2: Click on "add alarm" symbol
Step 3: Select Trend Rider Algo #1
Step 4: Choose the subindicator for the alarm
Step 5: Choose when the alarm will trigger. (I use "once per bar close" the most)
Step 6: Type a name for the alarm.
The alarms I use (for step #4)
Trend Rider Algo #1
For $BTC and NASDAQ Always active on the Monthly, Weekly and Daily (and sometimes on the 4 hr chart):
Potential Reversal
Probable bounce
Take Profits regular
Strong Take Profits
Trend Signals Ind. direction change (Bull/Bear labels)
On lower timeframes i activate them only if am going to trade that day and I am not gonna be in front of the screen all day.
Detailed guide here: https://www.trend-riders.com/indicatorslinks
