Summary of "He Probado 187 Indicadores, Estos Son Los Mejores"
Concise finance-focused summary — best trading indicators from the video
Top indicators (purpose, notes, key parameters)
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VWAP / BWAP (Volume-Weighted Average Price)
- Purpose: session-level execution benchmark; shows average price weighted by volume.
- Use: institutional reference for execution (e.g., funds wait to buy near VWAP to avoid overpaying).
- Applicability: intraday / execution strategies.
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ADX (Average Directional Index, Welles Wilder, 1978)
- Purpose: measures trend strength (direction-agnostic).
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Thresholds:
0–20: sideways 20–25: weak trend 25–40: strong trend
40: very strong trend
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Use: determine whether to trade trend-following vs range approaches.
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Moving averages (SMA, EMA, HMA, WMA, Jurik)
- Purpose: smooth price, mark dynamic support/resistance, define trend direction.
- Differences:
- SMA: simple average (more lag).
- EMA: weights recent data (less lag).
- HMA/WMA: weighted variants with different smoothing behavior.
- Jurik Moving Average: adaptive, non-linear — less lag and quicker capture of trend changes, but more noise.
- Use: trend identification, crossovers for entries/exits, dynamic S/R.
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Supertrend
- Purpose: trend-following indicator to identify trend direction and potential entries/exits.
- Note: highlighted practitioner Stefano Serafini used Supertrend (with other indicators) to capture large trends.
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ATR (Average True Range)
- Purpose: measures volatility (average movement magnitude), not direction.
- Practical rule given: stop-loss = 2 × ATR, take-profit = 4 × ATR (example).
- Example figure from video: ATR = 0.000115 (illustrative for sizing stops relative to instrument volatility).
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Volume Profile
- Purpose: shows traded volume by price (horizontal); identifies high-volume nodes = interest/liquidity zones and key support/resistance.
- Use: area-of-interest detection for entries/exits and institutional liquidity zones.
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Parabolic SAR (Stop and Reverse)
- Purpose: trend-following and dynamic stop placement; dots follow price (below price = uptrend; above = downtrend).
- Uses: trend following, trailing stops, change-of-direction signals.
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CVD / Volume Delta (Cumulative Volume Delta)
- Purpose: measures net aggressive buy vs sell volume (buy volume − sell volume), cumulative over chosen timeframe.
- Important detail: CVD accumulates delta across the timeframe; Volume Delta is per-period — results differ by timeframe.
- Applicability: best where actual traded volume is visible (futures, stocks, crypto); less effective in spot FX (no central volume).
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FOZI (Forex Overview True Strength Index)
- Purpose: oscillator measuring individual currency strength so you can rank currencies (strongest vs weakest).
- Use case: builds currency-strength driven FX strategies; cited as core to Sergej/Sergei Magal’s competition-winning approaches.
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Williams %R
- Purpose: momentum oscillator for overbought/oversold readings (similar to RSI/stochastic).
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Ranges (video):
0 to −20: overbought −20 to −80: neutral −80 to −100: oversold
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Historical note: Larry Williams used this in his 1987 World Cup Trading Championship win.
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CCI (Commodity Channel Index)
- Purpose: measures price deviation from a statistical average; identifies extremes and cyclical behavior.
- Use: detect when price deviates significantly from “normal” behavior across assets.
Methodologies / practical frameworks and rules
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Trend first
- Use ADX to determine market regime:
- ADX > 25 → trending (favor trend-following strategies).
- ADX < 20 → range-bound (favor mean-reversion/range strategies).
- Use ADX to determine market regime:
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Entry confirmation
- Use moving-average crossovers (EMA or Jurik) and Supertrend for trend-following entry signals.
- Confirm with volume-based tools (Volume Profile, CVD, VWAP) to ensure institutional interest/liquidity.
- For FX pairs, use FOZI to pick pairs (go long the stronger currency vs the weaker one).
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Position sizing & risk
- Use ATR to size stops and profit targets (example rule: stop = 2×ATR, take-profit = 4×ATR).
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Execution
- Institutions use VWAP for large block buys (e.g., waiting near VWAP when buying very large quantities).
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Exit / trailing
- Use Parabolic SAR as a dynamic trailing stop or exit signal.
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Timeframe and accumulation
- Be aware that indicators like CVD behave differently across timeframes (daily vs weekly CVD will show different accumulated pictures).
Assets / instruments / markets referenced
- Stocks (example: Apple used for large block buying).
- Forex / currencies (CAD, AUD, NZD, USD, CHF, JPY, GBP, EUR shown in FOZI).
- Futures, stocks, cryptocurrencies — volume indicators recommended here because actual volume is available.
- Spot FX — caution: volume-based indicators are less reliable due to lack of centralized volume.
- General: indices, commodities (CCI origin), crypto.
Key numbers, returns, timelines, performance examples
- Video author: 12 years learning, profitable for 9 years; tested 187 indicators and highlighted 12 best.
- Notable trader returns mentioned:
- Stefano Serafini: 217% return (World Cup Trading Championship, 2005).
- Larry Williams: 11,376% return in 1987 (from $10,000 to >$100,000 in a year); second-highest return in that contest was 1,283%.
- Sergej / Sergei Magal: >350% return (second best trader of 2023 in World Cup Trading Championships); won Forex category in 2024.
- ADX numeric thresholds and ATR sizing example repeated in the video (ATR = 0.000115 used illustratively).
Explicit recommendations, cautions, and disclosures
- Indicators are useful but not automatic solutions:
- They will not compensate for lack of analytical skill or experience.
- They do not make you profitable overnight.
- Adding more indicators does not necessarily improve results — overloading can cause misuse and conflicting signals.
- Traders who win competitions often customize indicator parameters/coding — default settings may not reproduce those results.
- Volume-based indicators require real volume (effective for futures/stocks/crypto; less so for spot FX).
- While the subtitles did not show “not financial advice,” multiple cautions were made that indicators aren’t a silver bullet and require skill/adjustments.
Other practical points
- Jurik MA trades earlier (less lag) than EMA but with more noise — trade-offs between speed and false signals.
- Understand the difference between CVD and per-period Volume Delta: same underlying measure but different aggregation and interpretation.
- Use Volume Profile to identify liquidity zones where institutions likely execute; these zones often act as key support/resistance.
Presenters / sources referenced
- Video host / creator (claims 12 years learning; profitable 9 years; tested many indicators).
- Traders and researchers cited: Ivan Sherman; Serj/Sergei Magalá; Jean Luigi Giventre; Andrea Unger; Larry Williams; Kevin Davy; Stefano Serafini; Michelle Williams; Welles Wilder (ADX origin); Jurik (Jurik MA developer).
- Tool/platform mentioned: TradingView.
Category
Finance
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