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BEST CHAIKIN Trading Strategy that actually makes MONEY after 100 TRADES !! - Forex Day Trading - YouTube
Channel: TRADING RUSH
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Can Chaikin oscillator trading strategy聽make
you more money in stock or forex trading?
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We tested the money flow index 100 times on
the Trading Rush channel, I found out that
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the money flow index has an Ok win rate and
can sometimes make money. Then we tested the
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Chaikin money flow 100 times, and that worked
as well. What will happen if we test the chaikin
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oscillator 100 times, will it perform better?
In this video, I'm going to test the Chaikin
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oscillator 100 times to find its win rate,
and to see how many winners and losers it
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can have in a row. Furthermore, at the end,
I'm going to give it a Trading Rush score.
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What's the Trading Rush score? It's like the
Doug score, but for trading indicators. Now聽I
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have tested many other indicators 100 times
on the Trading Rush channel, but I never gave
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them a Trading Rush score, so I will rate
other indicators hopefully in the coming week
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as well, which you will be able to find on
the Official Trading Rush Website. This way,
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beginner traders who are looking for proven
profitable strategies, can find it easily
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on the Trading Rush Channel, not just sorting
by聽highest win rate, but with other categories
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as well.
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Subscribe to the Trading Rush and ring that
notification bell, because we test many different
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trading strategies 100 times to find their
win rates, and you don't want to miss that.
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If you plot the Chaikin oscillator on your
trading chart, you will notice that it comes
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with 1 line that moves above and below zero.
This line tries to show the momentum of a
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trend. The Chaikin oscillator will try to
show the buying and selling pressure. Indicators
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like the Chaikin oscillator, which try to
show the momentum of a trend, have worked
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really well on this channel. So let's see
if this indicator performs good as well after
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100 trades.
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The idea is pretty simple, when the Chaikin
oscillator is above the zero line, the buying
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pressure is high.
Similarly, when the Chaikin oscillator is
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below the zero line, the selling pressure
is high.
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The basic聽strategy based around the Chaikin
oscillator goes like this. When the Chaikin
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oscillator is crossing above the zero line,
it's a buy signal.
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And when the Chaikin oscillator crosses below
the zero line, it's a sell signal.
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In this example, the Chaikin oscillator crossed
above the zero line. So entry is at the first
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candle that closed above the zero line of
the Chaikin oscillator. And in this example,
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the Chaikin oscillator crossed below the zero
line. So entry is when the first candle closes
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below the zero line.
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But what about long term? Will this indicator聽聽
work in the long run? Before we test the Chaikin
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oscillator 100 times, we will have to modify
the Chaikin oscillator strategy to fit with
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the trend. Taking every single trade will
make you lose money. But we can use the 200
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E MA to find the long term聽trend direction.聽
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So the better chaikin oscillator trading strategy
goes something like this.
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Buy聽when the Chaikin oscillator crosses above
the zero line, and if price is above the 200
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E MA. As for the stop loss, you can set it
below the pullback.
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And Sell when the Chaikin oscillator crosses
below the zero line, and if price is below
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the 200 E MA. Stop Loss is above the pullback.
Furthermore, in both of these setups, the
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entire candle has to be above or below the
200 period moving average.聽
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In this example, the price stayed above the
200 E MA, so we are only going to buy. The
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Chaikin oscillator gave a long entry signal,
so entry is at the closing price of the candle.
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Stop Loss is below the swing low.
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In this example, the price stayed below the
200 E MA, so we are only going to sell. The
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Chaikin oscillator gave a short signal, so
the short entry is at the聽closing price of
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the candle that crosses below the zero line,
and set the stop loss above the swing high.
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The Chaikin oscillator trading strategy was
tested on the 30 min timeframe and on the
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Euro JPY pair. And聽after testing the Chaikin
oscillator 100 times, here's what happened.
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Number 1. At the start, when price was in
an uptrend, Chaikin oscillator gave multiple
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winning trades in a row. The indicator gives
many entry signals in a short period of time,
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but these entry signals are not bad like some聽other
indicators we have seen on this channel.
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When the trend was coming to an end or was
changing direction, the Chaikin oscillator
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did give a decent amount of聽false signals,
but it makes up for that by giving many good
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signals in a strong trend.
You can see this in the Trading Rush App,
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when the price was trending, the profit line
was going up. Then it slowly went down when
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the price was changing the trend direction
or was moving slowly. It gave back some of
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the profit it made, but when price started
to move again in one direction, it made even聽more
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profit. You can filter the range market by
using other indicators like the alligator.
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I have already discussed more聽about the alligator
indicator on the Trading Rush channel, check
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it out to learn more.
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Number 2.聽Unlike some other indicators, there
is nothing particularly bad about the Chaikin
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Oscillator. The entry signals it gives are
not late most of the time, and because of
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this, your pullback stop loss stays smaller.聽
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After testing the Chaikin oscillator 100 times,
I got an approximate win rate of 47 percent,
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which is a profitable win rate because we
used a 1.5 to 1 reward risk ratio. The profit
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graph in the Trading Rush App looks good and
is going up, with few pullbacks when the price
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starts moving sideways. In the end, it managed
to make money, with 7 losses in a row, but
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11 winning trades in a row.
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And now, let's give the Chaikin oscillator聽a
Trading Rush score.
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In the win rate category, Chaikin oscillator
gets a 5.5 out of 10. Win rate is good and
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profitable, but not high as some other trading
strategies we have seen on the Trading Rush
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channel.
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In the easy to use category, it gets a 7.5聽out
of 10. The Chaikin oscillator strategy is
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fairly straightforward and all you have to
do is look at a line when it crosses above
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or below another line.
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If we talk about the reliability category,
it gets a 6 out of 10. The Chaikin oscillator
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gives many winning trades in a row, but also
gives many false signals in a row. Strategies
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that聽give multiple signals in a short period
of time, are usually not that good, because
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when price stays in the sideways direction
for a long time, you can lose a lot of money
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if the signals are false.
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If we talk about consistent profits, it gets
a 5 out of 10. The profit graph in the Trading
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Rush App went up in the long run, but there
were sudden upward moves, and many losing
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trades in a row. The profit graph you will
get with the Chaikin oscillator strategy won't
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be as consistent as some other strategies.
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If we talk about the quality of the entry
signals, the Chaikin oscillator strategy we
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tested in this video,聽gives entry signals
in the direction of the long term trend direction,
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where price has higher probability of moving.
And because it doesn't give late entry signals
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most of the time, it gets a 7 out of 10.
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So the overall Trading Rush聽score is 31 out
of 50. Other trading strategies that had excellent
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win rates after testing 100 times, will get
a Trading Rush score soon.
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So subscribe and ring the notification bell,
and because on the Trading Rush channel,聽we
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test and have tested trading聽strategies multiple
times to find their win rates. And you don't
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want to miss that. Maybe considered supporting
the channel on Patreon to see in depth trade
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analysis. Thanks for watching.
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