Simplified Guide to Using the Trading View Indicator
Introduction to the Trading View Indicator
The Trading View Indicator is a tool designed to make your trading decisions easier. Whether you're a long-term investor, a swing trader, or a short-term trader, this indicator offers valuable insights to guide your strategies.
Using our indicator requires a subscription to Trading View. You should enter your Trading View username in the Token Metrics settings section. It's important to understand that the indicator operates within Trading View's platform, not directly on our site.
If you have used this indicator in the past, you will need to remove the old version:
And then invite the new indicator:
For Long-Term Investors: "Steady Sam" Approach
Who is Steady Sam?
Steady Sam is a long-term investor focusing on cryptocurrencies or tokens.
Believes in using the Token Metrics Indicator to find strong, growth-potential projects.
Prefers holding investments for years, ignoring short-term market noise.
Application of the Indicator:
In Bullish Periods: When the indicator signals 'Long', it's an opportune time to consider buying or entering a long position.
Example: From October 2023 to January 2024, a bullish signal preceded a 59.95% increase in BTC value.
In Bearish Periods: A 'Short' signal suggests it might be time to sell or take a short position.
Example: From November 2021 to January 2023, a bearish signal was followed by a 69.36% drop in BTC value.
For Medium-Term Traders: "Strategic Sarah" Method
Who is Strategic Sarah?
Aims to capitalize on short to medium-term market movements.
Integrates the insights from the tokenmetrics indicator with her own market research.
Adapts her strategies in response to changing market conditions.
Indicator Feature for Medium-Term Trading: Ichimoku Cloud
Green Cloud Area: Signifying a bullish trend, indicating favorable conditions for buying or holding.
Red Cloud Area: Points to a bearish trend, suggesting potential for selling or shorting.
Trend Changes: The intersection of price and cloud often indicates a shift in trend.
Cloud Thickness: A thicker cloud implies a stronger trend and vice versa.
For Short-Term Investors: Rapid Rick Approach
Who is Rapid Rick?
Rapid Rick makes swift trading decisions based on real-time market data.
He quickly adapts his strategies to align with the latest market movements and news.
Rick relies on technical indicators and chart patterns to identify trading opportunities.
Despite the fast pace, he maintains strict discipline in his trading approach, avoiding emotional decisions.
Green Line as Bullish Indicator: When the price aligns with the green line, especially alongside a long signal, it can be an ideal scenario for increasing your position.
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Red Line as Bearish Indicator: A red line alignment with a price and a short signal can be an opportune moment for reducing your position.
Advanced Trading Techniques: Utilizing the Three Blue Lines
Upper Line (High Level): Signals a potential peak in the market, suggesting a selling or position closing opportunity.
Middle Line (Mean Level): Offers a reference point for evaluating the current price against its average, aiding in decision-making.
Lower Line (Low Level): Indicates a possible low point in the market trend, potentially a good buying opportunity.
Identify Overbought and Oversold Conditions:
When the price touches the upper level, it may indicate that the asset is overbought, and a reversal or correction could be imminent.
Conversely, when the price touches the lower level, it may suggest that the asset is oversold, and a bounce or reversal to the upside could occur.
Build new Trading Signals:
Some analysts use our Bands to generate buy and sell signals. For example, a buy signal might occur when the price touches the lower band and then starts moving upward, indicating a potential reversal to the upside.
A sell signal might occur when the price touches the upper band and then starts moving downward, suggesting a potential reversal to the downside.
Identify Price Volatility:
When the range of three levels contract, it indicates low volatility, suggesting that a period of consolidation or range-bound trading may be underway.
When the bands expand, it suggests increasing volatility, potentially signaling the start of a significant price move.
Additional Information:
The indicator also displays 'Closed Longs' and 'Closed Shorts', allowing you to review past signals and their outcomes. This historical insight can be crucial in refining your trading strategies.
Net Profit:
This represents the total profit (or loss) generated by your trading activities. It's calculated as the difference between your total gains and losses.
Total Closed Trades:
This metric shows the number of trades that have been completed and closed. It's a useful indicator of trading activity and frequency.
Percent Profitable:
This is the percentage of trades that resulted in a profit. It's a crucial metric for understanding the effectiveness of your trading strategy.
Profit Factor:
The profit factor is calculated by dividing the total profits by the total losses. A profit factor greater than 1 indicates a profitable trading system, while a value less than 1 suggests a need for strategy revision.
Max Drawdown:
This measures the largest single drop from peak to trough in the value of your portfolio, before a new peak is achieved. It's an important risk metric, indicating the potential loss in a worst-case scenario.
Average Trade:
This figure represents the average profit or loss per trade. It's calculated by dividing the net profit by the total number of closed trades.
Average Bars in Trade:
This metric shows the average duration of your trades, in terms of price bars. It helps you understand the typical time frame of your trading positions.
This guide aims to offer a detailed understanding of how to leverage the Trading View Indicator across different trading styles, helping you make informed decisions based on comprehensive market analysis.