Trendline Tricks and Moving Average Magic with TrendSpider


Trendline Tricks and Moving Average Magic with TrendSpider hello and welcome to looking at the
markets with David Modell I know that you guys and gals love charts you love
candlesticks moving averages indicators all that good stuff but you need the
tools to be able to do charting effectively that’s gonna make you a
better trader and investor and in case you didn’t know it already I’ve been a
big fan of this one charting platform and fortunately I’m in contact with Jake
from trend spider comm and he’s going to show me not only and he’s going to show
you not only what’s going on in the markets that you need to look at and
perhaps a few tips tricks and strategies for charting to become more effective
but also we’re gonna tell you about a platform called a trend spider comm
that’s really going to blow you away if you haven’t checked this out you really
need to so what you want to do before we get started is remember that below this
video in the description section there’s going to be a link that will take you to
trend spider comm if you want to check it out okay and you definitely will so
welcome to looking at the markets Jake from transpiler I appreciate it today
thank you for letting me jump on the video again and talk a little bit about
our platform and how you can use it on an everyday kind of basis yeah so what
are you seeing right now in the markets and you know how can we use this
platform to perhaps get a better reading of what’s going on sure so one of the
main things that you can do on the platform the the platform is very robust
so there’s not you know a main feature that to focus on but one of the main
things that I like to use especially when we see a big breakdown in the
market like this so you can see you know back in late July we pretty much went
straight down and during that time you know I had the
SM 8:20 up and I had the EMA 50th the daily these two solid lines and what I
was looking at was you know okay are these lines going to hold and these are
just the moving averages that I use this isn’t you know advice on what moving
averages to use they’re just the ones that I’ve found to be very helpful and
the way that I do my analysis so but you know when these started to break down
I’m sitting there like okay well the daily moving averages have broke down
maybe I need to start looking at more of a top-down approach and looking at the
longer term moving averages but using the same ones so the SMA 20 and the EMA
50 but not from the daily but from the weekly so here you can see where we
finally found a bottom here was actually the EMA 50 from the weekly chart so on
most charting platforms or if not all there’s no way to be able to see how the
shorter-term price action is going to interact with the longer-term indicators
and trend lines in this case you can see the daily chart is interacting with this
this weekly moving average very bullish so any time that we did test this
general area with a small margin of error as you can see by this purple area
you can see each time these wicks bounce right out of this zone and then we
continued up to try to test the daily EMA 50 but even if I overlay the SMA 20
from the weekly you can see this was also just absolutely gapped down from
and that’s finally where we did catch a bid right at this area so those are the
two areas that I’m watching on the chart let me put these two back on but what I
also have here and this is something that’s pretty new to the platform is the
ability to anchor my view app from a specific candle and this comes from the
strategy that Bryan Shannon uses from alpha trends he’s the founder of alpha
trends comm and he created this mindset where why just look at the V whap from
an entire kind of range with a different input why not actually anchor it from an
important part of the chart in this case this is important because this is where
we finally caught up a bottom and if we really wanted to get
technical you know this is where we technically caught a bottom so if I want
to remove this and add another one all I have to do is right-click create an
alpha trends view app and what I can do here is simply just remove this this
dotted line is actually the weekly view app but I don’t want to see that right
now I just want to see the daily and you can see how perfectly this general line
has held but if we even anchor it from this area as well you can see this held
pretty well when we did first kind of pull back once we did have this balance
so all in all these are just some of the general ways that I like to use the
platform looking at the the overall picture so for me it’s very interesting
to see how we’ve literally just been in this constant range between the weekly
and the Daily EMA 50 and this was actually the second day now that we’ve
that we’ve opened above the EMA 50 since breaking down below it so all in all
these would be the main areas that I would call your status quo if you will
and I call it a status quo because right now the market is kind of just in this
in the doldrums if you will it’s just range-bound
up and down between two very distinct areas but you know if we start to break
above this general area that’s where things may get interesting if we break
below this general area which has been support when we finally did catch a
bottom in early June you know this would be where I would call you know the
status quo of the market changing where you know bears may have kind of taken
control so that’s something that’s very unique about the platform and the cool
thing about this is these anchored view apps are on other platforms a few of
them not too many but the ability to actually create an alert on the view app
so what I’m going to do here I’m just gonna remove this so we have one and you
can see let’s say that the price action breaks down through this weekly EMA 50
and this actually already has an alert on it but if if I want to let’s say
layer the support meaning you know we break down through here and then I want
to capture if we break down through here I’m just going to create an alert at
this line and you’ll see you know let’s say that I only want to be alerted when
the price action tests this exact line I would then only choose sensitivity
pretty much at zero because that means the alert is going to fire when the
price hits the selected line precisely but let’s say I don’t think we’re gonna
get exactly there maybe maybe I think you know unlike this candle we we may
balance a little above this line what I can do is start increasing the area at
which I will receive an alert and that means I don’t have to wait for the price
action to maybe get exactly to this line I’m increasing the area that the alert
is going to fire in this case it’s one dollar and fifty four cents from the
selected line and as I move this to the right you’ll see that number continues
to increase and you see this purple area continue to get wider and wider I
personally don’t like to go too far to the right I generally do like to see
some type of margin of error around the line because at the end of the day these
moving averages these trend lines they’re not always hit precisely there’s
there’s some times where there’s a reversal before you actually get to it
yeah so just kind of interject this is so cool I have not seen this on any
other charting platform that I know of at least where you can increase or
decrease the sensitivity of the touch point or the bounce or the break through
a lot of times you know you want to adjust exactly how sensitive it is like
what does it mean to break through or break down or break out when it comes to
moving averages via Web and all those you know will you accept it if it’s just
kind of closed does it actually have to break all the way through it can it just
touch it what is touch even mean how close does it have to be and so you can
visually see with the light purple there on the screen what the sensitivity is on
trend spider calm on the platform you can adjust it just like Jake’s doing
right now you have several different types break through touch bounce I’ve
never seen that anywhere else that is so cool and it’s a proprietary feature as
far as I know for trends spider very cool
now I underst that the alpha trans anchored V whap you
know I might need to make a separate video on that one because look at how
predictive that is look how perfectly the sp500 or the spider’s SP Y ETF
bounced right off of it also notice the weekly EMA 50 the 50
period EMA support plenty of data points there I mean I see plenty of wicks
bouncing right off of that we got a lot going on in the markets that lends
itself really well to technical analysis this is so cool Jake what else am I
looking at here so one thing that I want to show a
really cool case study of you know the sensitivity feature if I just remove
these just moving over I’m gonna pull up the SMA 20 right now and you’ll see the
SMA 20 on the daily let’s say that you are trading the last couple days not
necessarily today but what you can see here is the price action and this is a
great example of what we were just talking about see how the price action
never got exactly to that line right so if you would have had an alert just on
this line you would have never been able to capture this little top before we
pull back however if you created the alert with the sensitivity you can see
how those wicks are then captured within that purple area yeah so one thing I
want to mention these are daily candles right so if their daily candles and the
confirmation candle is a daily that means you need to wait for the entire
day’s candle to close before you get an alert through your phone or your email
now if you do the confirmation candle lower to let’s say a five minute candle
you’ll see here that anytime the five-minute candle closes in this area
which is part of this smaller this this daily wick then you’ll be alerted to
intraday and you’ll say okay I either want to scale out I want to scale in I
want to sure so you don’t have to wait for that daily candle to close but you
still are concerned about how the daily candle looks you just want that shorter
term timeframe to be alerted out right so that’s something that you can really
utilize as well in just a cool example of that very
now one thing that I want to mention as well something that’s very unique are
raindrops now raindrops be you know before getting too deep into them and
into this chart essentially raindrops are something that let me just remove
this and this so we just have the raindrop
you’ll see here a typical candle this is a daily raindrop of UnitedHealthcare now
what we have here is we’ve got the left side and the right side now typically if
you have a bar chart you you know this is your either your open or your close
these bars instead of being the open and the close this is actually the view app
on the left side of the of the candle which is the first half of the period so
you can see this is the first half the right side is the second half and what
you can decipher from this is a few things one you can see on each side on
top of the view app is the volume by price kind of the volume profile
overlaid on the price action so you can see you know like any other candle the
top here is your high of the period the bottom here is the low of the period but
in between instead of just being a regular candle you can see that during
the first half of the period a lot of this volume is focused at the bottom of
the range here so you can see that there’s not a ton of volume holding or
you know actually traded in this area you can see a lot of this volume is
aggregating at the bottom of the the price area showing that you know is this
possibly sellers just coming in and picking up you know on on selling
pressure or is the price low did the price drop on low volume and is this
buyers coming in and starting to kind of aggregate and accumulate down here so so
there’s a few different ways to look at this and one thing that I want to show
you is the blue rain drop and that’s something I’m going to focus on so the
the view app whenever the right side view app is below the
left side or the second half of the period is below the first half that’s
when you’re gonna have a red candle or a red raindrop when you can see these two
bars are very close to each other or exact exactly on the same level this is
what a blue raindrop is when you essentially have like a true doji and
that means that instead of a doji with the open and closed price you have a
doji with the actual view app for the first in the second half of the period
and then finally opposite of red you’ve got your green candle which is when the
right side view app is higher than the left side ie the second half of the
periods volume weighted average price is higher than the first and that’s why
it’s green so what I want to show on this chart and all in all I would have
to say blue raindrops are something that are really worth checking out
you can see on this screen really quick before I you know show the other example
anytime that we’ve got a blue raindrop you can see this here let me just type
in raindrop doji so we can see these visually anytime you’ve got a blue
raindrop you can see there’s a huge move so in this case you know if I if I do
measure the move here here’s a blue raindrop at the top
within 12 bars you have a 12% move to the downside now what happens you’ve got
a blue raindrop within this little valley after a massive move to the
downside and then you’ve got a huge move to the upside within eight bars you’ve
moved up almost 10% so what these are is they’re they’re ways to capture
volatility they’re not always going to tell you you know which way that
volatility is going but what it does is it will show you you know okay you’ve
just had a big move to the upside right here there’s a blue raindrop that forms
at the top you know and you’ve also got a previous area here which you found as
resistance so if you’ve got a blue raindrop forming on an area like this
where you’ve got previous resistance it may be indicative of okay we found
resistance again and there may be some volatility coming especially since we
run resistance that volatility may be to the downside now you compare that to
this raindrop blue raindrop and we kind of see we are near a general bottom here
that we found previously and so you know after a huge move to the downside a blue
raindrop forming down here maybe a little more predictive of a move to the
upside than a downside because at this point the move down is exhausted and you
can only have so many sellers at a certain point those sellers have to
cover their short and that’s how you get this little relief bounce here before
the next leg down yeah those blue raindrops have been extremely predictive
in terms of reversals and big moves on this stock here which is UNH
UnitedHealthcare daily I was gonna say candlestick candlestick chart but it’s a
raindrop chart and you’re not gonna find these raindrops anywhere else as far as
I know this is proprietary to trend spider and again you can get this by
going to trend spider comm or clicking the link in the description below this
video these are so cool because you get more information than with traditional
candlesticks or ohlc bars because you’re getting a volume profile that’s what
makes those cool shapes as well as the colors you get the open high low and
close sure but you get so much more with these I like these thank you and uh this
is a cool example of anchoring the view app so we talked about anchoring the
view app previously at the bottom of SPS drop in this case what I’ve done and
this is before this blue raindrop formed what I did was I entered the view app
from the previous two blue raindrops and you can see over time as the view app
started to kind of you know smooth out if you will from this volatile action
here you can see as the price moved up this these two view app areas acted as
support one two three four and then finally the price action broke down here
and so what you can even take from this is you know this is a pretty cool area
to watch and so I wouldn’t say anchoring the view app from the last two blue
raindrops on every chart is going to work but it’s like the MACD or anything
else the MACD may work really well on one chart and it may not work at all on
another chart that’s the same thing with how blue raindrops were with anchoring
the blue raindrops and even alpha trends anchored view app in general every chart
is going to have a slightly different view and how those things are shown but
this is cool right because we can see here that during this breakdown we can
see a lot of volume is really picking up here and so this is really interesting
to see are these sellers or is this kind of buyers coming in and just buying up
the bottom here so we’ll have to see but one thing that I wanted to show lastly
in this is how you can really utilize blue rain not even blue raindrops just
the volume profile on raindrops and compare that against a hollow candle so
in this case you can see we’ve got a big move down this is back in October and
then we finally bottom din December this is the QQQ so the NASDAQ ETF and what
you can see here is I connected these two points so I’ve got one point to
point I’ve got another point here so this is a decent trendline you’ve got
three touch points on this area you’ve got a fourth area that tries to actually
break out here but what’s important to note here and let me just remove this
red so you can see it better you can see during the first half of the period ie
the left side of this candle a little blip of volume tried to kind of pop up
above this line so we can see that there was some price action at this area but
it wasn’t much and then during the second half of the period there was no
volume above this trendline it was flat and we so we know that there
was no price action at this area because there’s no volume profile all of this
volume profile is focused below the trend line here and that’s what kind of
told us we had a continuation to the downside after and this was actually the
start of our next leg down now compare that to this raindrop which actually has
a ton of volume over this trendline so you can see that in
this case buyers had conviction when they pushed the price over this
trendline and if you compare that to a regular hollow candle you can see that
during the hollow candles action sure there’s there’s a wick here but you
don’t know we don’t know anything about this wick we don’t know if there was
volume or anything we just know that the price closed right at the trendline
however when we showed the raindrop you can see there was actually you know
within this wick there was a ton of volume there there was a ton of volume
that was actually holding above the trend line and then that’s how we have
our continuation up after that so as as David said this gives you a lot more
information within one candle then you’re gonna get just based on the low
high open and close this is telling you the low the high the view at for the
first half of the period that’d be wet for the second and then showing you how
the volume is flowing throughout that particular period that’s great because
with excuse me with regular traditional candlesticks sure you can put the volume
bars on the bottom of the screen I guess but that’s not gonna tell you what time
of day especially if it’s daily candlesticks that’s not gonna tell you
what time of day that volume really came in to the bullish side of things or to
the bearish side of things so there’s a tip and a strategy right there if you’re
using daily candlestick charts you want to know you know what happened during
the end of the day the second half of that day of that period when did the
volume come in because that as you can see in this QQQ which is the the Nasdaq
ETF you know when did it come in when did the volume and the the buyers come
in that is very significant information and if you just have regular traditional
old volume bars you know that’s not going to give you that granular detail
as to what happened and when it happened and so you’re kind of painting a fuller
picture or a more complete picture with these raindrops again really cool really
informative thank you and you know that’s something that’s really cool as
well let’s say that you want to test the
raindrops out that’s one of the biggest things for me because let’s say I go to
Netflix which actually is one of the coolest charts to find raindrops on
you’ll see that they’re not incredibly common but they do happen pretty often
and so instead of me having to go in and say alright you know let me see each one
of these raindrops and how its performed what I can do is just go to the strategy
tester I can put this in my parameter is simply just looking for a condition that
condition is a candlestick pattern which is a raindrop doji which is what we
define as a blue raindrop and so I want to see how that raindrop forms after 10
candles test that and you know this is my favorite part it’s just easily seeing
this on the screen without having to do any manual work so in this case we can
see any time and actually let’s go to the strategy tester and only show this
on the chart so you can see the analysis depth here we were just looking back
2000 candles but let’s just back test the actual chart and then we’ll reset
that test it and let me get rid of these execution marks we’ll reset it on the
chart you can see where the back test is started here and you can see here’s our
first blue raindrop and you can see within 10 candles there was a 2.2
percent move down however you can see within the first two candles there was
actually a much bigger move down we can see here within this blue raindrop to
this blue raindrop that was almost a 7% move or over 7% move down so if you want
to capture the volatility in between this entry in this exit signal you can
go to download CSV and that’s going to show you okay what’s the max drawdown
what’s the max gain because you know you can enter a position let’s say that
you’re long on a stop well just because you go long and you’ve back tested
something that doesn’t necessarily mean you’re not going to incur unrealized
losses before you actually go green so you can see here that some sometimes you
know these blue Ranger don’t always react immediately but a lot
of the time they do you can see here you’ve got a hard move down you’ve got a
blue rain drop and a hard move up you’ve got a really hard move down here and a
huge move to the upside this says exit of 1.9 8% but that’s only because it’s
giving us the return after this tenth day because our exit condition in this
case is a length of time after 10 candles but we actually had a bigger
measured move here which was which was closer to 10% rather than 2 so just make
sure you utilize this download CSV to capture those those volatile times in
between the actual entry and exit and we actually will be working on showing
these max gains max draw downs on the chart as well when we do improve the
backtester yeah and I always recommend to people test whatever strategy you’re
thinking of using test it out back test it forward test it test it this way in
that way make sure that it works before you commit any capital to any strategy
and a if you’re a coder if you know how to do all the coding to back test on
your own cool but that’s not me okay I don’t know how to necessarily do all the
coding stuff and so you can use a tool like this to do all the work for you and
it’s a lot easier so I like to set this testing ability on trance fighter I
don’t know how to code either I’m one of the faculty members at the
team but the beautiful thing about any team is everyone has their own strengths
and our development team is just absolutely amazing and they have the
ability to give somebody like me who doesn’t know how to code the ability to
go in create the logic that I understand I just don’t know the coding language so
as long as you know the logic that you’re going after whether that’s I know
that I want to test the MACD crossing to the upside with the RSI closing above 50
if you know those conditions you can put that in this visual interface without
having to use pine script or Python or anything like that so let’s say that you
do like the blue rain drop and you want to create an alert next time that
happens just click alert me next this happens you see here instead of any
coding all I have is the raindrop doji is formed and then I can create an alert
let’s say that I want to know when the raindrop doji is formed but I also want
to know at the same time when the MACD has crossed I just do MACD fast has
crossed up through the MACD the daily MACD slow and so now whenever both of
these conditions occur I’ll get an alert let’s say that I only want to know if
any of these happen as long as one of these two occur
I’ll get an alert so it’s up to you if you want all of the conditions to occur
if you want any of the conditions to occur you can change that in here you
can change the name you can increase the expiration time up to 45 days for my
particular account based on whatever price price subscription that you choose
that will change it can go up higher than that so you know make sure to check
out the pricing page to see which plan would work best for you
but you know these are some of the main things to try out and I highly recommend
giving it a shot and seeing if this is for you yeah we do have a free trial so
you don’t have to commit right away you can try before you buy I don’t see why
people wouldn’t want to at least check out the free trial but they’re gonna
have to go to trend spider comm either in their browser on their phone their
laptop desktop tablet whatever you have just type it right in just like that
you’ll see that front page you can you know click on free trial you know you
could do the signups or just yeah or just start with one of the plans I mean
look at how affordable those are you know they’re not asking for thousands
and thousands of dollars here all right this is very affordable monthly plans or
again it just start out with that free trial see if you like it first and they
have yearly plans save up to 35% very nice so you know either go to transpire
calm in your browser type it right in or you can click on the referral link in
the description below this video either way is good with me as long as you check
it out well I learned a whole lot from this
you know and there are other features that we didn’t we didn’t even have time
to go over so much like all the trend lines I mean you can have automated
trend line maybe you could show us real quick I mean with a click literally the
click of a button you get all of the most important trend lines that you
could possibly need for a stock all at once and then you pick and choose which
ones you like the most I mean it’s it’s really automated really cool and
tailored to the your type of trading or investing style now let’s think about
how long it would take me to draw all those 10 trend lines and and I am so
sloppy with my artistry that my train lines would look terrible compared to
this so this is how it’s done folks it’s very very neat very cool I like it a lot
the way the way this works and I won’t take long explain this but the way this
works is you can see I just went to show trends and I went to all or unfiltered
so this is actually every single line the system is finding based on these
particular preferences I meant as you see when I change this the analysis type
is simply just measuring the distance between the candles so enhanced is going
to measure candles that are closer together original you’ll see that less
less lines are going to show up here because it’s measuring a further
distance between the candles and you can also have the system look for different
things these are trend spiders lines these are your lines that you automate
with the system to how you want to look at the the price action in this case if
you don’t want to use wick to wick you can add the system draw your lines
body to body you can have the system respect or ignore gaps in price and
that’s also going to change how these lines are drawn and how the system looks
for them notice how I just changed all of these different preferences and the
lines changed as well let’s say you know you don’t want to look at all the lines
you can go to most relevant and then these are going to be the most relevant
lines the system finds but you also have to make sure that the platform is
up-to-date the system has not done analysis since the 13th of August and
it’s the 21st today so always make sure your time stamp has refresh and locked
if there’s a relevant line now so notice when i refresh and lock
these lines are going to change a little bit and it’s actually finding different
lines and as I mentioned you you simply change these from original to enhance
and it’s going to find different lines on the chart notice how I’d switch to
enhance and it just found this lower line now let’s say I change this from
body to wick it’s going to capture the wicks now rather than the bodies so very
flexible very robust and we’d love to have you check it out and see if this is
something that adds value to you fantastic I’ve learned quite a bit I am
blown away by trance fighters platform I don’t know anything else that even comes
close to this Jake we’re gonna have to have you back in a future for sure to
give us an update on the markets and for more you know trend spider magic and you
know trend lines all the cool stuff the raindrops I mean we’re gonna have to
revisit this and get an update sometime soon so thank you everybody for watching
and listening this presentation there’s much more to come and thank you Jake
from trance fighter calm thanks for stopping by

8 thoughts on “Trendline Tricks and Moving Average Magic with TrendSpider”

  1. What a fantastic Charting site – trendspider.com 😊 Great explanation thanks Guys 👊👊

  2. Is it reasonably priced? Do you have any training courses available on the web? Your videos are on point. Doesn’t hurt to have dime pieces on them either haha sucked me in.

  3. hi david thank you fr the video does this work for day trading and scalping can you please do a video to show live trading for these set ups. thanks.

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