My Primary LONG Strategy To Use With The Logical Trading Indicator V.1

almost 2 years ago

In this post I want to explain how I use the Logical Trading Indicator V.1 that I published as a community script here on TradingView. The following strategy is what I use on a daily basis with a number of different assets, primarily crypto and FOREX, but can work with just about any asset with a chart.

This post is not specific to one particular timeframe, but I made the chart on the 1HR as that is the timeframe that the default settings were keyed in on. It is based on a LONG strategy. A SHORT trade would be just the opposite, which I will also make a post about as well.

How it all begins

When I sit down to the charts, I set my alerts so the indicator tells me when to trade so that I can go about my day and make my moves with the alerts hit. This keeps me with a mechanical strategy that I can use to help keep my emotions out of the trade.

Steps I take to prepare for a LONG trade:

STEP 1: Set alert and watch for a bullish cross of the basis line. This indicates that the trend is changing and to be on the lookout for momentum change as well as the BUY signal.

STEP 2: Set alert and watch for the next BUY signal. This happens when the price is above the basis line and the ATR meets the multiple set in the settings. So by default it is set to 2x multiple. So when the price jumps 2x the ATR figure, that means we are getting some serious bullish momentum and it is time to enter a long trade.

STEP 3: Although this indicator works on a trailing stop loss strategy, it's always good risk management practices to set what I call an emergency stop loss. This protects your capital in-case everything just goes wrong. I set my emergency stop loss inside or just to the outside of the lower bollinger band range. This gives your trade room to move and go in the direction that it is indicating, but protects you incase the market turns quickly and you aren't paying attention.

STEP 4: Set alert and watch for Take Profit signals. This happens when the price closes inside the upper bollinger band range, which also indicates an 'overbought' range similar to an RSI. The signal fires when the next candle closes below the band. This let's you know the momentum has changed and it could be a great time to take at least 50% or more of your position off the table.

STEP 5: Set alert and watch for a bearish cross of the basis line. This indicates that the trend is starting to change and is when I usually close out the rest of the trade.

STEP 6: You can set an alert to let you know when the SELL signal fires. This is the absolute LAST chance to get out in profit. This is the trailing stop loss signal that is built into the indicator. With my particular strategy, I am usually out of the trade at this point, but if I didn't get a chance to do anything when I got the bearish basic cross, I am definitely closing everything out when I see that SELL signal. This is also when you could be looking into flipping bearish and taking a SHORT trade, then it's just the opposite.

Now go trade logically!

I hope this helps answer some questions that people might have about how to use the Logical Trading Indicator V.1!

This post was originally posted on my account on TradingView, go give me a follow there and get the indicator on your charts today! Please be a pal and give the indicator a boost so I can get it moving up the trending section fo the community scripts!

This indicator is free and has the meat and potatoes of the full script, but if you want the version I use and continue to update, you should check out the Logical Trading Indicator V.2. the Logical Trading Academy!

Wanna get on a path to financial freedom?

Join the Logical Trading Academy!

https://logicaltrading.academy

Trading Education | Trade Community | Trade Alerts | Market Analysis | Trading Indicators and Strategies

Get my 'Anyone Can Be A Trader' eBook Today!

Just getting started as a trader? Check out my latest book that can give you some direction for your trading journey!

'Anyone Can Be A Trader' is available on the Gumroad store if you want to pay with a card as well as the Hivelist Store is you want to pay with crypto!

Get edge in the markets with the Logical Trading Indicator

Get this game changing indicator that can help you gain some serious edge in the markets while still living your life!

Get the Logical Trading Indicator from my Gumroad Store today!

Hive Users Get Get the Full Bundle NFT

Hive users can get both the eBook and trading indicator with this limited edition bundle offer on @nftshowroom! Only 200 NFTs available!

Get the Hive NFT today!

Additional Blog Locations

Many of my cryptocurrency related articles can also be found on my crypto research site, Coin Logic.

My main trading education related articles can be found on the Logical Trading Academy Blog page.

Disclaimer:

The information in this trade journal is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.