All language subtitles for 6. Example Putting Together Your Indicator Combination

All right, as we just learned, we know that having a primary indicator is secondary, that complement

each other is always a good, strong move, but there's ways to make that even better.

And that's we're going to harp on this lesson.

So we're going to look through an example of that to kind of confirm or confirm or really show how that

would work.

So let's say you're choosing the moving average crossover as your as your primary.

Right.

So that's a you're going to need to choose within that.

You're going to choose timeframes because that's how cross so moving averages work.

And you're going to need to choose the type of crossover or the type of moving average line you want

to use, whether it's a simple moving average and exponential moving average or something like Hofferman

moving average things that we learned about.

Right.

So we have some decisions around that moving average crossover.

Now, how you can think about what's a good.

Now the question is, well, what's a good secondary?

And we know coming from a different family of indicators is a good first step.

Could we make it even a little bit better?

How can we make this even a little stronger?

So think through the indicators a little bit.

Go through.

If you got one that you really like shows, let's do this again.

Think about their strengths and weaknesses.

So, for example, you know that the moving average crossover is a lagging indicator.

It's looking at previous prices.

It's a lagging indicator.

And we know from lagging indicators that might mean you come in later into, let's say, a buy situation

because it's a little bit lagging behind.

You're waiting for that to develop.

And then so, you know, you're waiting for that situation, that indicator to happen.

So might result in a later entry, which could mean lower profits.

Right.

We like the idea of like I love the moving average crossover, let's say, but I'd like to get a little

sooner so I can capture a little bit more profits than, let's say, kind of lagging in there a little

bit.

And that's how you can kind of start building these things and think about that.

Right.

So let's say if you're looking in this example as a secondary confirmation or secondary confirmation,

let's say you want to enter earlier, you know, so then you look at, let's say, indicators whether

more about things that might be a little bit a little bit more about entering earlier, such as the

momentum indicators or an essay RSI stochastic oscillator.

You know, as part of that, you know, indicators, you know, so that's going to help you enter earlier,

choosing one of those as a secondary.

But let's say you also want to add a third indicator and not only do you want to enter early, but you'd

like to exit out a little bit closer to the high to just squeeze a little bit more out of that.

So maybe you want to add a third one that you're using to observe and watch through this whole process

where you want to squeeze out a little bit more profit.

So that's where you might be looking at some type of indicator that's showing an overbought situation.

Right.

We we bought in hopefully low, we bought in low, we bought and maybe a little bit sooner because we

used that earlier entry thing.

So we're using our primary an early entry with the latest in our series Stochastic Oscillator.

But now we want to exit a little bit closer to the high.

And so we might want to use another indicator for that portion of it, looking at something that might

be approaching, being overbought.

And so that's where we might want to look at a volatility or a sentiment type indicator.

For example, Bolinger, you you know, can we walk up the band, that kind of stuff, and wanted to

come off the band?

That might be an indicator that we've reached our peak and that we need to sell out of there.

And a lot of these indicators do similar things.

But you can see how we're pulling from different families to kind of build up a logical type of primary

and secondary indicator around that.

In addition, you can sound real smart at parties.

You can say stuff like this.

When I trade, I like to use an exponential moving average, but then I confirm it with both a sarcastic

oscillator and Bollinger bands, just to be sure.

OK, well, I know if you sound smart or boorish or boring, but you can say I say, yeah, that's what

I do know.

And in the end that's what it's all about, right?

You can pull from the different indicators in the course, the various sections, what really speaks

to you and build your own combination practice with with paper training, back tested to see what it

looks like and historical data and really start to learn and really apply it.

As far as doing that.

Now, there are some classic ones you can use to in some different ways to look at.

And we've got a lesson that coming up next.

So take a look at that to kind of help get you started a little bit to.