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#1 BEST FOREX INDICATOR | (Why All Other Indicators Are TRASH!) - YouTube
Channel: Blue Edge Crypto
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The number one best Forex
indicator in the world, hands down,
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and basically all other indicators
that you could possibly ever use are
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complete trash. And I'm going to
explain why you may be wondering,
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is there some sort of Holy grail Forex
indicator that can accurately predict the
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future on a regular basis?
And here's the sad reality.
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The sad reality is that 99.9% of
indicators are completely trash and are
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not going to help you at all.
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Because all of these indicators are
really doing is they're basically telling
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you what's happened with price,
but it's telling you in the past.
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So it doesn't really have any predictive
power about predicting the future.
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Now there's one indicator that I'm going
to talk to you about does have more
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predictive power in my opinion,
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than any other Forex indicator
that's out there on the market.
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And I'm not just trying to sell
you some sort of indicator.
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I'm gonna show you how
you can use this for free.
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And I promise you that this is going to
be contradictory to what most people are
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talking about in terms of
Forex indicators on YouTube.
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So make sure that you stay tuned.
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I'm gonna talk about the number one best
Forex indicator that's on the market
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that actually does have some
ability to predict the future.
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Hey there,
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my name is Adam Wenig and we made this
channel to help make your trading elf
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easy, lucrative, and fun.
So if you're new here,
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click the subscribe button and
turn on post notifications.
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So you don't miss out on other helpful
videos like this. Okay. In this video,
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we're going to be talking about the
number one greatest Forex indicator that's
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out there. And is that actually possible?
Is there one Holy grail indicator?
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And the sad reality is, is not really,
but there is one, in my opinion,
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my studies and my understandings that
has a higher likelihood of being able to
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predict the future. Now, the, again,
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the sad reality is if you're searching
for the best forex indicators,
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you're looking for some Holy grail
magic approach to some indicator,
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that's going to give you a high
chance of predicting the future.
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The reality is that you're just going
to go from indicator to indicator,
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to indicator, to indicator,
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and you're going to end up broke
likely until you figure this out.
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Cause that's exactly what I did.
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I went from indicator to indicator
figuring there's a magic combination or
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there's magic setting on these
indicators that once I get it,
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all trading will become really
easy. And the reality is it's,
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it's not really that way.
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I actually didn't even figure
this out until I got lucky.
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I met a gentleman who was a
ten-year bank trading veteran.
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So he went down this rabbit hole of
trying to find the best Forex indicators.
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He went through trying to find the best
strategies and all this sort of stuff.
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And he actually ended
up writing this book,
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which you can download
for free on our website.
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It's actually called edge trading secrets,
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the unspoken laws of a forex bank trader
how to leave the herd and join the
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smart money. Now, what he talks about in
this book is really pretty interesting.
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He says that what,
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why is it that 99% of people
are failing in Forex trading?
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And he basically points to some major
psychology problems that happened
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with retail traders, which
I'm going to talk about,
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but he really says that understanding
sentiment analysis is really the
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finest combination of technical and
fundamental perspectives. Obviously,
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technical is looking at
indicators fundamentals,
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looking at the overall news
and macro economic situation.
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But sentiment analysis is the
finest combination of the two.
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And what sentiment analysis does is
it looks at the behaviors and the
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positioning of different
market participants.
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And I'm going to show you how you
can actually read the sentiment via a
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sentiment indicator and how to help this.
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How do you use this to help give
you an edge in your trading? Okay.
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So sentiment basically means the opinion
or more specific specifically how each
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market participant translates their
opinion of what's going to happen into
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positioning. Okay. Sentiment analysis,
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again is the finest combination of
technical and fundamental analysis. Now,
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in order to understand sentiment analysis,
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you first have to understand that
the Forex market is broken into two
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components. There's the smart
money and there's the herd. Okay.
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The herd is like retail traders, the
smart money consists of banks and funds.
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Okay. And they're very different
in the information that they have.
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They're very different in the
psychology that they have.
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They're very different in the way that
they diversify themselves also in the
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amount of capital that they
have. Okay. And as you know,
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the smart money is almost always making
money and they're just consistently
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losing money. Okay. So here's
what we're going to do.
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So I'm going to show you how to actually
use sentiment to your advantage.
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So this is a free tool that
you can take a look at on
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myfxbook.com/community-outlook.
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And basically what it's doing is it's
pulling in data from thousands of
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different retail traders.
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And it'll tell you the overall
net position of traders. Okay.
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So if the red line is above the blue line,
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the red line is basically short
positions OK, or sell positions.
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And the green line is buy
positions or long positions, right?
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So we can see here that clearly.
Okay. Clearly. And I, and this is,
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you're just, this is going to blow your
mind, but clearly this is in an uptrend,
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right? You can very easily see that
it's making, you know, higher highs,
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it's making higher lows, higher highs,
higher lows is making higher highs,
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higher lows. It's clearly
in an upward trend, right?
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But here let's take a look at retail
sentiment and what the herd is actually
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doing, because here's the thing.
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If we know that the herd is almost
always wrong, which they are like 95,
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99% of the time, they're wrong.
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Then would it make sense that we would
just want to do the opposite of what
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everybody else is doing,
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it would align us with the smart money
and give us a higher probability of
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actually becoming a successful
trader. So let's take a look at this.
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So prices clearly on the uprise
in what do we want to do?
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We want to trade with the trend,
right? That's that's obvious,
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but look at what happens here, price is
increasing. And what does the herd do?
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The herd is increasing
their short positions.
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You can see the short lots right here,
right? As I go wrong, 40,000 lots, 43,
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48, 53, 54.
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They're increasing the total amount
of short positions that they are,
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even though the market is going
up. So all these people are wrong.
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They're going into drawdown,
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they're hitting their stop loss
and they're blowing their account.
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But you can see that the net
position is still short. Okay.
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The herd is still short,
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even though the market continues to
climb higher and higher and higher.
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And what happens here,
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you see this huge liquidation
happen here as price spikes,
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and a lot of people get a
stop-loss out of their positions.
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And you'll notice this on pretty much
any currency pair on any timeframe that
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the herd is consistently wrong. So
hello. Well, if the herd is short,
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then we most likely just to be
long, right. It's really simple.
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So we'll take a look here at
the USD, Mexican peso here.
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And this was just a very easy example.
I mean, this has been, you know,
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on a strong downtrend here for quite
some time at this point, right? Well,
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over a couple of months. Okay. Strong
downtrend. And what do you see?
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You see all green, which basically means
what's happening. The herd is long,
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even though the market is, uh,
falling down and downtrending,
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as you can see here, as the
market moves lower and lower,
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the herd continues to go long, long, long.
They continue to go long, long, long,
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even though the market's falling,
falling, falling. And they go long, long,
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long, long, long. Isn't that interesting.
So what is actually happening here?
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Well, there's a few things that I'm gonna
show you how to put this together to
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actually become a more
effective trader. Okay.
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So let me go back here and read
from the edge trading secrets book,
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which I highly recommend
that you read this book.
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If you're serious about becoming a
trader, it is a little bit advanced,
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but it's still really important to do
this. So you may be thinking, well,
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why is the herd always wrong?
Why is it clearly an uptrend?
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And why is the herd selling
into an up trend? Well,
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it's because they have some bad behaviors.
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Number one behavior is that traders
subconsciously think that price is too
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expensive and they put a new
sell position in the up move.
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So this is the big problem here, right?
So we can see here in an up position,
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the herd is putting in sell
positions, as we can see here,
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because the herd basically thinks
that price is too expensive.
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So it's going to come back
down. Right? And that's,
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what is one of the biggest pitfalls
of all of retail traders is,
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is that they basically buy low
and try to sell high, right?
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That's what we've been taught our entire
lives. But the problem is, you know,
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we want to sell it when it's high,
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but you don't know how much higher can
continue to go or how much lower it can
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go, if you're buying in a situation,
how much lower can it continue to go?
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Right? And that's where most
people really mess up. Okay.
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Behaviour two existing traders who are
holding short positions since the market
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is going against them.
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They average into the losers and
hopes that price will retrace. Okay.
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So basically this means that
if price continues going down,
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like you can see here most retail traders
instead of just cutting their loss and
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trading in direction of the trend,
they'll average into the losers.
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Meaning they'll take a buy here,
then they'll take another bite here.
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Then they'll take
another bite here, right?
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In hopes that the market eventually
retraces okay. And this is a huge,
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huge problem for retail traders.
Okay. Behaviour number three is,
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is that traders who are holding long
positions that are in profit will take
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small profits. As price goes up, thus
reducing the number of long positions.
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Right? So again, they will
take profit as price goes up.
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And so they'll get out of the
position instead of riding the trend.
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And that will cause the net amount of
long positions to fall and short positions
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to rise. Okay. Next thing is,
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is that they refuse retail
traders refuse to put a stop loss.
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They refuse to move, or excuse me,
they refuse to put a stop loss.
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They'll move their stop loss, or even
cancel a stop loss as price goes up,
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right? So price goes up and it's going
against them. They're in a short trade,
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they'll move their stop loss.
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Or they'll even God forbid
cancel the stop-loss altogether.
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And this causes the herd to cut their
profit short and let their losers
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run basically.
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And that's the big problem is that
retail traders would prefer to take their
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profit short and let the losses run
because they see they're in profit.
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Like I'm excited, I'm in profit.
I'm going to take profit. Right.
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And when they're in losing
trades is that it's almost,
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it's got to come against me. So
I'll get into a better price, right?
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And that's really the downfall.
So when you break it down,
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simply this is the reason why the herd
is almost always wrong is because they
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have, I have an urge to
catch tops and bottoms.
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That's what almost all
Forex traders try to do.
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They try to catch tops and bottoms.
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And that's why they're pretty much always
in the wrong direction of the trend.
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And they hold onto their losses too large
and they cut their profits too small.
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So let's put this all together and
teach you how you can become a more
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successful trader. Okay. Now
this is pretty eye-opening right.
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You can see that here that this is a
free tool. That again, you can use,
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and you can see that, you know,
you want to be opposite the crowd,
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or you want to be contra crowd.
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Now we've also put together a proprietary
indicator called the bank's secret
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indicator, which basically
pulls in data. Okay. And again,
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you don't have to use this,
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but I want to show you this because it's
powerful and you can try it again for
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free for seven days and you only pay
for it if you feel like it's worth it.
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But based on what you've
learned, check this out.
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So it pulls in data from
literally hundreds of thousands
of retail traders from
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my fx book, from different
brokers, from all over the place.
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And it tells you what the herd is.
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So it's like a snapshot of what's
happening in the market right now.
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You can see the herd is 78% short.
You can see that they're 22% long.
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Isn't that interesting? They're short,
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even though the market is clearly
on an uptrend here, right?
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And you can also see this as kind of
just a nice little feature where if it's
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blue, it's in an uptrend. If it's red,
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it's in a downtrend for all
the different timeframes.
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So it's kind of just helpful, right?
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And then also prints a supply and demand
zones where prices likely to bounce off
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of, which is really nice.
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And it can even send you alerts to your
phone and all of this sort of stuff.
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But let's get back into talking about
this. Okay. So what do we see here?
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We see prices clearly in an uptrend.
And just like we saw in my effects book,
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we see the same thing here.
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We see that the herd's net short
position continues to rise where the herd
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continues to sell into an uptrend.
Isn't that interesting? Well,
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let's take a look at another pair.
For example, this is USD CHF.
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You can see that the herd is long 79%
long. So we would want to be short. Okay.
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We would definitely want to be Contra
crowd. And what do you see happening?
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Prices falling in the herd is trying to
catch the bottom and then like, okay,
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this is the bottom I'm
going to buy here. No,
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this is the bottom I want to buy
here. Now this is the bottom.
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This is the bottom. And they
continue to try to buy, buy, buy,
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to try and catch the tops and
the bottoms of the market. Okay.
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And this is why most
retail traders lose money.
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And simply by trading Contra
crowd or against the herd,
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it can give you a serious, serious
edge in the market. Now, look again.
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It's just everywhere that you look, you
can see that the herd is mostly short,
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80% short, so we'd only want to be
long, but what happens with price?
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Price is clearly trending upwards here.
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Yet the herd continues to
remain short and look at this.
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This is just baffling to
me, but as price moves up,
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you can see that the herd sediment is
short, short, they're getting shorter,
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they're getting shorter.
They're getting shorter,
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even though prices rising high, high,
and high. How does that make any sense?
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So simply just, you know,
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using the sentiment is a tool
that can give you a massive edge.
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And this is arguably the easiest way
to find if a trend is happening or not.
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Okay. You know,
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a lot of people use different sorts of
indicators to try to find if a market is
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trending well,
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the sentiment is actually the finest way
that you can find the trendiness of a
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market. You'll notice that when this
is like 50 50, or it's closer together,
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you can see that the market is not as
much in a trend. And I'll, you know,
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I'll try to pull something up for you
guys really quickly here to show you.
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Okay. So this is actually a perfect
example. You can see USD JPY, it's 52, 48.
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So you know, the bears and the
bulls are kind of battling.
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There's no clear direction. And what
do you see happening with price prices,
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kind of stalling. It's kind of ranging
here. You can see it starting to range,
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or, you know, it's quite choppy here.
It's even quite choppy right here.
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And that's really interesting. So when
you see these numbers really far apart,
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you're likely in a trend, or if
you see them getting further apart,
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you're likely getting into a further
trend. Like for example, you know,
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you can see that these are
quite far apart, 80 20,
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and you can see that the market
is starting to trend. I bet you,
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if you were right here, for example,
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these two numbers would be
closer to closer, like 50,
50 or something like that.
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Okay. So this is also an amazing
way to predict the trend. Okay.
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So that being said, if
you found this helpful,
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then consider trying the bank's secret
indicator for free for seven days and
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only paying for it.
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If you feel like it's worth
it blueedgefinancial.com
or head on over there to
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also download our book,
Edge trading secrets,
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the unspoken laws of a Forex
bank trader. I promise you,
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it's going to blow your mind if you
thought that this little video is mind
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blowing, reading,
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that whole book is going to totally
change the way that you look at trading
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Forex. So again, go ahead,
click the subscribe button,
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turn on post notifications. And we
can't wait to see you in another video.
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