FINALLY FOUND an ADVANCED TradingView Indicator That Actually Works

Summary

The video presents a BTC intraday setup using TradingView’s Inducement Engine Liquidity Target indicator and a 33-period EMA. The presenter says the approach can be applied to other markets, but demonstrates it on BTC using a 5-minute chart. 3- or 15-minute charts are offered as alternatives; higher timeframes are discouraged for this intraday strategy.

The strategy aims to wait for a liquidity sweep and confirmation rather than entering as soon as a signal appears. The presenter emphasizes following predefined entry and exit rules, avoiding sideways markets, scaling out of winning positions, and backtesting before use.

Instruments and Indicators

• BTC / Bitcoin
• Inducement Engine Liquidity Target indicator
• EMA (exponential moving average), set to 33
• ADX/DMI for directional confirmation
• Indicator options mentioned: FBG/confluence imbalance, deviation/pin-bar signals, and a volatility filter. The presenter leaves these options off.

Indicator Setup and Parameters

• Chart/timeframe: BTC, primarily 5 minutes; 3- or 15-minute charts are alternatives.
• Inducement Engine:
  • Swing length: 5 (leave unchanged)
  • ATR length: 14
  • Maximum IDM memory: 100; the presenter says values above 50 give better results
  • Leave the goal, stop-loss, and input lines enabled.
  • Enable Show IDM level and Show expected IDM.
  • Session times can be enabled for markets with specific trading sessions; the presenter turns them off for Bitcoin.
  • Leave HFT trend and other settings unchanged.
• EMA: Change the default length of 9 to 33.

Trading Framework

1. Trade in the direction of the trend. Use the indicator panel: look for buys when the trend is bullish and sells when it is bearish. Check ADX/DMI for directional confirmation.
2. Wait for a liquidity sweep and the IDM level. Do not enter as soon as the level appears. Wait for price to move through the relevant area, then confirm beyond the IDM/entry level.
3. Confirm with the EMA. For a buy, the confirming bullish candle should close above the EMA; for a sell, the candle should close below it.
4. Wait for the candle to close. The presenter warns against entering before the signal candle has closed. For a long setup, the close should be above the entry line and the relevant prior candle/IDM level.
5. Follow the planned stop loss. Do not exit early out of fear; let the stop loss or a target be reached. The presenter advises against manually interfering with the stop once in the trade.
6. Avoid sideways markets. If the EMA is flat and candles are clustering around it, ignore signals. The presenter prefers a clearly sloping EMA.
7. Scale out at targets. Close 50% of the position at the first target, 25% at the second, and the remaining 25% at the third.

Risk Settings and Cautions

• More aggressive setup: Stop-loss multiplier 0.5, with targets described as 1 to 3.
• Less aggressive setup: Stop-loss multiplier 1, with targets at 2, 4, and 6.
• The presenter cautions that indicators may fail in sideways markets and that a signal alone is not a reason to enter.
• The presenter recommends backtesting before using the strategy and says to consider it only if testing shows a positive result of 50% or more, giving 60%, 70%, and 80% as examples. This is the presenter’s stated threshold, not evidence that a 50% win rate is profitable; profitability also depends on risk/reward, costs, and execution.
• No explicit financial-advice disclaimer appears in the subtitles.

Presenter and Source

The presenter is unnamed in the subtitles.

Source: The Trade Trekker