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What’s going on, guys? So, if you’ve been on the live stream, we’ve been talking about this indicator for a little bit. It’s basically to find the a near-term bottom within the market. Um, before I get into that, if you like this video, smash the like button. Come join us live. Uh, we trade live every day, 10:30 to noon, 2:00 p.m. to 4:30. And, uh, if you’re in the prop firm world, make sure to use coupon code Cove Trader. it supports the
Channel. So, all right. So, I’m going to jump into it. The indicator is down here, and I was definitely looking to maybe combine it with uh order blocks. Um, but yeah, I’m going to just do the indicator. The rules are you’d need five consecutive green candles down here, and you’d have to be over 30. Um, this indicator is called CM Williams VIX Fix. It is I’ll just show you right here. Right here. It’s by Chris Moody. A lot of people use
It. I am going to uh So, I’m just going to back test how many times it works. And listen, this isn’t a one indicator thing. every time this indicator happens, you end up using it. Like it’s just for uh you know, like confluence to look for argument sake, you know, I was just looking at this one like you know, we’re coming back down into an order block and we’ve had x amount of green candles. You know, we’re pretty high. Would I
Take this trade? Yes. Kind of seems pretty, you know, multiple things are starting to line up. So, that’s what I’m looking for. But I’m going to test the indicator just by itself and see if I followed the rules, what would we look like? I also don’t trade the first 15 minutes or the last uh half hour of the day with any indicators when I’m back testing cuz the volume can definitely sway off the results. So, we’ll just look. You obviously have
More than five here. And if you want to speed up, go to the end of the video where I announce the results. Um, actually, you know what? I won’t let you sit through this. I’ll actually go through it. But this is how I’m back testing. Look, multiple more than five. First gray bar right here would be my entry candle. And then there would be um some type of stop. Most likely I’m going to do either 10 or 15 points. And the
Goal is to get the same on the upside. So, I’m gonna do that. I’m gonna mark it on my sheet and uh I’ll be right back with all the results. All right, I’m doing some back test and I want to show you one example of a oneandone type situation. I assume there was news here. If there’s news, I would not play this because obviously the news is going to far outweigh any indicators. So, I’m marking this down as a loss anyways,
But I just want you to know if if you’re dumping I mean, it just dumped 300 points, don’t use the indicator. Just stay out or you just keep following it down, right? But argument sake, say there was no news. If you have a situation where you have all these greens and you get one gray and you take that and then it goes back to greens, probably just sit that out. I probably wouldn’t go back and try to keep trying to catch
The bottom. I’d probably say this is the only time I’ve actually seen it happen. And obviously there was news. Um I’m just seeing if there was some type of if this happens again, I probably wouldn’t take if I took it once, take it again. Like I’m not just trying to keep taking it. I would just say, “Hey, the setup is done and I’m just going to wait until we go, you know, until it goes all the way down and then we
Work something back up.” So, I just wanted to show you that if there was news, I’m not taking you anyways, but I’m going back to to still testing. This is very promising, by the way. All right, I just saw another thing where also you got to get the feel of this. So argument sake, this is the first clump that meets the requirement, right? Over 30. But because you got one big dump right here, the first candle is the biggest and then
It kind of gets smaller and smaller. I don’t know if I find that the same as when you’re going up up up up up because to me that looks like you just got one dump and now you’re already working it off on these candles and you’re going to miss the entry. Um something like that. I I probably would just sit it out even though you probably could have got in at like [Music] 89. you you could have got your 10 points.
Would I have taken that? No. I’m just kind of giving you scenarios of things that I you know indicators are going to give you thing, but it’s your feel that kind of gives you the edge, right? It’s my feel of the market, my feel of the indicators. Like I probably just wouldn’t do it. First of all, we dumped under uh 21,400 and it looks like they’re buying it back over, but like could definitely just reject 21,400 as a whole number and
Go lower. And the fact that these candles, you know, kind of like big and then kind of selling off, I want it the the other way. But I’m just kind of giving you scenarios as I’m back testing what I like, what I don’t like. So, you know, you kind of get the feel of of this as well. All right, guys. So, I finished the back test. Uh, Trading View only allowed me to go back uh I don’t know, like 10 days
Worth of trading or 10 days in general because I’m on such a lower time frame. If I was on a minute, I can go back further. If I was on five minutes, I can go back further. Um, what I found out since May 14th is the scenario worked out happened 21 times. 17 would have been right. It’s 80% 81% win rate. Um, you know, you also have to have a little bit of knowledge on things that you’re willing to take. um
Things to stay away from. Like I’ve said in the video, do I think this is just an indicator you follow? No. So, I don’t I don’t want to hear somebody like, “Oh, if that’s that’s the indicator.” Like, I’m just telling you, I think it’s a good additive. What I want to see, which probably would make it even better, is I would want to see us trade on these types of over30s. Um, we trade down into like a breaker block or an
Order block and I combine this indicator with trading into um a scenario like that maybe. Let’s see what we got. I don’t even I don’t even know. That’s, you know, argument sake. Something like this where we come Well, no, that that was created. But let me just play this out. Let’s see what happens, folks. You know, I would want to see us maybe come down, spike above 30, come down, and then go. Um, you know, I’m just giving this as an
Example. I’m not I’m just using it like I I want to use it with other indicators. I’m not just using this. Um, you know, that I had some tight rules obviously had to be over 30, had to be five in a row. Also, the green candles that I wanted to see had to be on some type of, you know, bigger than the next one. I didn’t want to see like one big one and then the rest lower. So, there was a
Lot of things that I was looking at to kind of disqualify um you know, I would say bad setups. You kind of just this was just a winner kind of you see escalating escalating escalating and then you would have got in right here and you would have gotten your points. Um you know those are just things here. I’ll just stop it again. I think this was another winner escalating escalating escalating breaks 30. You would have got in on this candle and
Then it would have went up. So, this was just actually random and you just it would have been two for two right there. Um, but you know, those are things that you got to look out for. You don’t want one big drop to cause the spike and then, you know, that’s not really what it is. You’re looking for this continuation lower slowly increasing these candles and then it kind of lets it go back up. Um, I would definitely, like I said,
Use it with un other indicators maybe. Um, I’m going to keep an eye on it. I’ll probably trade it on the live stream a little bit. And, um, it’s definitely something I’m going to leave on my chart. I didn’t realize how many people were using it. Said 55,000 people have, I guess, put on their chart. Um, I’ve used it in the past. I want to say I used it like two or three years ago and for stocks and I I’m back
Using it here on futures. Uh it’s definitely a scalping strategy. Um I guess one of the other strategies was I was looking at this was, you know, if you got gray right here, you’d put your stop at the bottom. So your stop would be here at 8:45, not 10 points. So you’d have an 845 stop and then on the upside you’d be looking, you know, you can could probably trail it. You know, you go up 15 points, you trail it by,
You know, five points behind to kind of keep getting the push or you can go for the bigger hold. I mean, obviously you you got a bottom, you know, we don’t go below here. So in theory, you would have caught this whole move if you just held it. Um, does that always happen? No. I mean, you would have caught it right here. you’d have gotten a nice move, a pullback, continuation. I mean, it’s one of those things that I’m doing this
Back test and it’s like a foundation and then I want you to take the indicator kind of take some of my rules. Okay, five green bars got to be over 30 and then you kind of run with it. You know, you add your own, hey, you know, this is where the stop is and I’m looking for larger gains. Like, I don’t know. I’d have to go back and back test how many times it ran, you know, 30 points or 40 points,
You know, was that the bottom? Um, or what you could do is you can go on like a five minute chart and say, okay, uh, you know, we got a bottom. I mean, obviously I’m not trading this time frame, but argument sake, say you got this. Okay, we’re over X amount on the five minute and then you hit P, you know, not pause, but then you go down to the one and then you’re also waiting to be in in the green
As well on the one and then you’re like, okay, I’m still in the green. Okay, and I go back down to 30 second to find the entry. Or you can just do that on three different screens if you want where it aligns where you have a green bar on the five. you know, you’d set up the same setup here on the on the one and then the same setup on the 15. And when you have green, green, green, you know that
It that’s the entry that you’re looking for. So, there’s different ways you could play this. I kind of want you to take it and run with it. Um, I never just solely, you know, go off of one indicator, but, uh, it definitely has some promise and I am going to be using it going forward. Probably uh, my entry is going to be on the 15, but I’m definitely going to see about the time, you know, the five, the one, the 15
And see if I can do something there. All right. If you have any questions, comment on the video. You can come in the live stream. Also, the free Discord is in the description of the video and uh I can come help you out there as
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