NIMBLE INVESTOR INDICATOR

My indicators are based on market momentum (follow the trend), meaning if your trading strategy is based on momentum then it will fit with this indicator. If your strategy is based on buying dips and this is not the one. First of all, there are few basic technical analyses you need to understand before using this indicator: market structure, trend line, support and resistance.

* 1) IDENTIFY TREND:
You need to draw a line to identify the trend, in this case, it keeps on creating new lower high and lower low. What we are looking for is selling opportunities, we want to enter a trade when the market trying to push up but fail to create a new higher high.

* 2) APPLY INDICATOR:
When you apply the indicator to the chart it will look like this, the purple line is a moving average it also helps you to identify direction. When the price is below then you are looking for a sell (vice versa). Plus if the price is moving above the line but the trend is still a downward trend, do not look for a buy entry unless you’re advanced and understand about reversal. (MARKET TREND IS YOUR FRIEND).

* 3) COLOR FILTER:
The darker the red colours it will show strongly the momentum in price pushing down when the red colours became lighter meaning it running of momentum pushing the price and could change direction. Hints for reversal traders, if you think the market will change direction look for a weak momentum with a rejection candlesticks pattern.

* 4) A valid entry will require 3 things:
- Trendline
- Price below the purple line
- Momentum (background color red/green)