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ADX Indicator || The Breakout Secret || Avoid Sideways Market || Anish Singh Thakur || BoomingBulls - YouTube
Channel: Booming Bulls
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Hello guys. My name is Anish Singh Thakur.
And we are creating a new learning video.
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This is a very important indicator.
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ADX. It is known as ADX.
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This is a trend strength indicator.
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Or as you have seen in the thumb nail,
it is a breakout indicator.
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Why do you need to watch this video?
If at times it happens with you, that,
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because of sideways market,
your stock is not moving.
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The day was good. The others stocks moved.
But your stock did not move.
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Or you had gone for a trade in Nifty
and BankNifty and market moved sideways.
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Neither fail nor pass,
but you were in a loss.
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That's why you should watch this video.
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This indicator will help you to keep
a check on sideways movement. Okay?
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However simple or good,
I may make this video,
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even if I use simple language,
but if you see it randomly,
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or by pausing it often, or when
the net is slow, you will not enjoy it.
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You may 'like' the video and add to
'watch list' and watch it at leisure.
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When? When you have 15-20 minutes
and another 15-20 minutes in hand.
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So that you may watch it and apply it
in tradingview.com simultaneously.
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You may work out in it immediately.
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You have to do your own back testing,
own check out and derive your own results.
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At the end of the video,
I will tell you two important things.
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One on trading and the other on life.
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Make sure that you watch this video till
the end and I will see you. Thank you.
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All right, guys. Welcome to this video.
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Today we'll be discussing a new indicator.
That is called ADX.
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What is ADX? ADX is a volume indicator.
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Let's see what Google says about ADX.
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ADX tells the strength of the trend.
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It doesn't say
about the movement of the market.
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It's full form is,
Average Directional Movement Index.
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It tells the strength of the trend.
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By looking at the thumbnail,
you might be thinking that,
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it tells the breakout. Yes, it does.
it saves from the sideways trend.
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What is ADX? What is its formula?
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You need not go to all such details. Okay?
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This is of no use to you.
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I will show this to you practically.
Let's have a look at the chart.
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I always tell you which time frame
is to be used for which type of trading.
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For intra day trading or for swing trading,
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If you want to do intra day trading
or maximum BTST trading...
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You may use 5 or 15 minutes time frame.
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If it's more than that, you may use
15 or say 30 minutes time frame.
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I am talking about intra day trading.
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We have to put the indicator, ADX.
You cannot get it like this.
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For that, you have to find DMI,
Directional Movement Index indicator.
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Now, click on this.
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You may feel scared to see so many lines.
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It may look very complicated. It's not so.
First, go to the settings,
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come up to here, and actually...
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There are two indicators within DMI.
What are they?
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One is ADX, written right here.
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The other one is DI.
Here also there is a +DI and a -Di.
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Plus Directional Index
and Minus Directional Index.
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The DI tells the direction...
Let's do one thing...
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I have given you
the VWAP strategy for direction.
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I have also given
the Pivot point strategy.
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Also there was EMA
and Price action strategy.
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You can do 'buy' and 'sell' with that.
So, what's the use of this?
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Let me tell you. Shut it down.
Okay?
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Experience people may use it.
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But I suggest that, beginners,
even I like to keep it like this.
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Mark the ADX black,
so that it is clearly visible to you.
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Now click, ok.
You can see that now it is very easy.
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This is a very simple indicator.
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It looks like RSI but it is not.
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When RSI moves upwards...
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When RSI break outs towards up and
become bullish, then market is bullish.
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If RSI is up market is also up.
If RSI is down, then market is also down.
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Or it's better to say that if market is up
then RSI is up and vice versa.
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But here it is not so.
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If you see the scale here...
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The range is from 0 to say 100, okay?
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Now I will tell you the
meaning of the numbers and its usage.
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Let me tell you...
When the ADX is low...
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What is low ADX?
8,9,10,15,12,17 25, all these are low.
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Market movement is sideways.
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The market will move sideways.
You can see, there's no trend.
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And when ADX will rise, look here...
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Market started trending
and ADX started rising.
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It has reached 57. Okay?
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You may get to understand a little.
I will tell you in detail.
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Now, I am writing here.
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Whenever ADX...
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Let me write it down over here.
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When the value of ADX is below 20,
then it is non-trending.
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This tells you the strength of the trend.
Market will not trend.
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When the value of ADX...
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When the value of ADX...
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When ADX is rising, this is the time,
a trader needs to get in.
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When ADX will start to rise...
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You can see here, 17, 18, 20...
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Good! It has started. Now it's 22...
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23... Now you have to
hold the winning trade.
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Your market will move.
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25, 30, 32, max to max,
I have seen it rise to 50 even.
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After that it starts to fall.
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When it starts to fall, then also
the market is moving. Why?
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Because the ADX is high.
It is not rising but it is high.
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When the ADX dips from 25 to 20,
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when it dips from 25 to 20,
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it falls to 18, 16...
Then the market is going sideways.
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I will show you what it means.
You can see here...
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Let me remove the drawings.
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You can see here, I am showing you...
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The market is now at 7.
Don't trade, guys.
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You may stop here.
There's no need to trade daily.
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You may trade when set up is good.
I am helping you out in one more way.
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This will save you from sideways market.
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You can see now it is 10, 11...
Day is over. There's sideways movement.
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At the opening of the market it is
18, 19, 24...
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This is an initial hint.
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ADX is about to rise.
Movement is following the market.
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What to do when market is going sideways?
Draw two lines like this.
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Make a mark at the days high and low.
Make a range of high and low.
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When this range breaks, go for trade.
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make an entry at the breakout level.
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And what about ADX?
ADX is now above 20.
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We are interested in rising ADX.
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When ADX has started rising, the market...
See, ADX is rising and market is falling.
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Market can rise and fall also.
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But the indicator ADX says that market
is sure to move, the volume indicator.
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It is lagging a bit. Well, all indicators
are likewise and we know that.
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But still it is giving a conviction.
Right?
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The ADX is still rising and rising.
You can hold the trade.
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See, the market has fallen to which level.
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We cannot dare to hold
from this point to...
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But we can hold up to here when
ADX started to break. You can exit here.
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So this is what you can do.
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This is one example.
I have shown you this in Nifty.
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Now, I will show you in an equity stock.
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Let's talk about Reliance.
It works everywhere.
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What to do now? Let's do it together.
Open the settings...
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Erase the + and - DI.
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Blacken the ADX so that you can see it
very clearly.
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Now, let's see.
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The ADX is falling in the market.
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Never trade in a falling ADX market.
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Always try to trade
when ADX starts rising.
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See, now it is rising.
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Now, obviously, we have to trade here.
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We have held the trade till here.
What did we get up til now?
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The trade can continue
because ADX is rising.
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Let us go randomly to a back date.
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Look at this. The market was sideways.
The ADX was falling.
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Then the market started trending and ADX
also started trending with the market.
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Now the ADX has fallen,
it is around 17 and 18.
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No movement in the market.
Let us again move back randomly.
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Okay. Look at this.
Again, we can see over here...
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Dropping ADX! Do we trade now?
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Don't trade now.
But the market opened the next day.
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In 2 candles you found out that ADX
has started rising above 20.
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Now the market trended.
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The market is sideways again. Okay?
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Now, ADX is rising again.
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ADX has risen and market has fallen.
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When ADX will rise, get it, guys.
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Market may rise or fall.
It may go either ways.
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But you have to...
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It will save you from sideways market.
Okay?
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A very technical, simple
and a very good indicator. Okay?
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Now, it's time for a bonus.
Close down the ADX.
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Look at the + and - DI.
Mark the + DI, green.
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And color the - one as red.
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This tells us when to 'buy' and 'sell'.
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But I don't use this.
After all, it is an indicator.
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It's no use to follow a single indicator.
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So, let's move forward.
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Whenever there's a cross over, the green
is rising indicating that market is up.
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If red rises, then market is going down.
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Well, you can, but I don't suggest
to use DMI.
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But you can back test it.
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I have mentioned in the beginning about
back testing and you have to do it.
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You can check DMI also,
but I don't suggest it. Close it.
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Open ADX, now don't consider this as
heavenly because I have made this video.
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There is nothing as God indicator.
Price action is what matters.
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But still, these things help.
It is nonsense if you say that...
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I know driving
but I don't need the indicators.
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Or, I don't need a horn, an upper dipper,
and so on and so forth.
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Have some more features.
You need not have too many features.
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Use limited indicators
but do use some of the. Okay?
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I do hope that of all of you
know to use these indicators.
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Use it judiciously and benefit from it.
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Work good for yourself and you family.
Right, guys?
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Everyone should work hard.
All should put all efforts. Okay?
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It was a nice experience
creating such video.
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This is a very small video.
I hope you all have enjoyed it.
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I will meet you at the outro video.
Bye, bye.
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I hope you all have enjoyed learning
this new thing.
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If you knew it earlier also, I have
explained it in a very simple manner.
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You may use DMI in the cross over,
if you are experienced.
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But those are weak signals, so I
suggest you to ignore them.
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Make other signals for entry.
Use these as filters.
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If ADX is rising, it is
a good opportunity to hold our winners.
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You can come to know it. Okay?
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I insist that you should not trust me.
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You should not trust anyone. In fact,
you should do your own back testing.
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So, what should you do
after watching this video?
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Please, go to tradingview.com
and do the back testing thoroughly.
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I will be making another video very soon.
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I will be providing all information
regarding trading views.
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I will cover the free and the paid version
and also tell what is necessary and why.
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It is definitely
the best software for charting.
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That is why
I will create a video very soon.
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I will do it as soon as I get time. Okay?
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Thank you so much.
Here I wanted to give two important tips.
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I feel that one should always add value.
My first tip is related to trading.
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The tip is related to risk management.
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I have already made a big video
on risk management.
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You may watch if not yet done.
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But if you pay heed to just this much...
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...you will surely benefit.
What is this?
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It's over-trading!
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Over-trading is something
that ruins the trader.
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It ruins them totally.
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You might have experienced...
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I get to read in the comments
about losses. Now, why does this happen?
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Just because of over-trading.
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If you follow the rule of
two stop loss per day...
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However hard it may be.
Think that you are playing a test match.
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It is not like a 20-20 match in IPL.
Not like you came, got a six and out...
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No, brother. If you want to stay along,
follow the two stop loss a day rule.
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That is all.
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I am doing it.
I have controlled 80% of my mind.
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I stop after two stop losses.
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Sometimes, I go for two more.
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When I feel that the opportunity is good,
and I should take a third or fourth trade.
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I take it and it's my personal experience
that whenever I made two losses,
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and went to take a third one...
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It was such that out of 25 or 30,
I recovered only once, rest were losses.
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So, I have learned
that actually it will not help.
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Please, write in comments that
when you are in a loss day,
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and you go in for more trade,
don't you suffer more losses.
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So, I say, two stop loss a day,
is the mandatory rule.
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This is very important. Follow this.
I have been 80% successful.
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If I am not following,
I will gradually drop that also.
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I am developing gradually
and you too develop gradually with me.
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The second tip is not related to trading.
It is related to life.
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And the tip is,
have a good friend circle.
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Why?
Why am I talking about friend circle?
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Friend circle is... okay, let's leave it.
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Whatever you are doing in the day...
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May be, you are watching T.V, or watching
Netflix or scrolling the Instagram.
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What type of pages have you followed?
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What type of content are you watching?
Is it 'Mirzapur' or something else?
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You are watching sci-fi or comedy?
Each and every thing matters.
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You always have to be very choosy
about the food for mind.
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Food for mind! Your friends around you
influence your life a lot.
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When you are watching with your friends,
just try to watch their face.
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Try to remember your friend.
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Five friends make your life.
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You want your life to be like them.
So, what's the point here, Anish?
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My point is not like...
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Yes, you should cut toxic people
as soon as possible. It's very important.
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But friends or family,
we often don't do it.
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Do one thing. Make two new friends.
Now, what do you mean by this?
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How? Like me.
I have made a friend, Anthony Robinson.
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Sadguru, and there are other mentors
and I read a good number of books.
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They are my best friends
and are a part of my life.
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So, whatever may happen, I read
the books of Anthony Robinson quite often.
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I read Sadguru, Brand Risi, Robin Sharma.
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I will put the link of the resource page
in the description box here.
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You may check the books of my library.
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You will get a good collection there.
So, please, you have to...
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...give food for your mind.
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And what is that? Books! If you can't
replace your friends, okay. Love them.
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Make two new friends.
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It's a feeling that, "Oh! The famous
Anthony Robinson is my friend."
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"Sadguru, the most
spiritual person is my friend."
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So many successful people are your friend.
Read books on trading. Read Steve Wons.
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Then, there is Marksel, Super Traderman
and so on and so forth.
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If your food for mind is good,
all will be good too.
[883]
Today is Saturday.
Enjoy your weekend party.
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But remember, work first and then party.
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Please, do the back testing of this video.
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And then whatever you wish. Okay?
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Even I make parties.
All should enjoy parties.
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But make sure that you are doing
your own job perfectly.
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So, thank you so much, guys.
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Please, not to mention, 'like' the video
if you've enjoyed.
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This enables it
to reach out to more people.
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If you share this video with your friends,
if you care about your friends,
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they should know this indicator
as well as these two tips.
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So, please, share the video as well
and do comment and say,
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how you liked this learning video?
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Thank you so much.
I'll soon bring more content to you, guys.
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Thank you so much. Bye.
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