[00:01] there. It's not a magic indicator, it's not a feeling, and it's not luck. After years of operating, testing in practice, and creating objective setups, I've discovered four essential pillars that need to be in your strategy before opening any [00:16] day trading position. And when you follow these four pillars, man, your accuracy increases and you can avoid the mistakes that most destroy your account in day trading. So come with me, man. [00:29] First pillar: identify the trend. Look, as cliché as it may sound, before anything else, we need our strategy to have an objective criterion to know which direction the market is most likely to go. And [00:42] you can use dozens of different tools in your strategy to clearly and objectively identify price trends. But today, man, we're going to start with the stock reading indicator. So, I'm going to insert it here, [00:56] pay close attention to what I'm going to do here. I'm going to place a horizontal line at the 80 level. So, I come here, look, in position, I put 80, I take another horizontal line, I place that horizontal line at the 20 level. And [01:09] now, man, we're going to modify the slow stochastic oscillator. Okay, so we're going to double-click on the slow stochastic oscillator here at the bottom, in the period field, we're going to put 144. The stochastic oscillator will then look like this, as you see here. And [01:22] in terms of appearance, dude, you can put a dashed line here in black, okay? Click OK. We can set the moving average to a period of one with an offset of one. Okay, man. Now we're going to observe the stochastic oscillator only [01:34] through this green average, okay? Yes, man. I know that this indicator is not normally used to determine the trend, quite the opposite, right? But this is about breaking away from the conventional, man. We think outside the [01:47] box. So, man, this new approach to the slow stochastic oscillator, for follows. If the slow stochastic oscillator is above 80, as is the case here, then we will consider that we are in an uptrend, OK? Look, the price [02:02] here has simply gone up. Now it's clear, man, if the slow stochastic oscillator is below the 20 level here, then we're going to consider that we're in a downtrend. As you can see, look, the price just dropped in this [02:15] case here. And the last possible scenario, man, is this. If the man, is this. If the slow stochastic oscillator is neither above 80 nor below 20, we will simply consider it to be moving sideways. In this case, [02:27] you can see, man, that the price just stayed sideways. So, man, objectively identify the trend , which is the first pillar, but we can use other indicators. So, for example, we could [02:41] use the Arum line indicator here. We insert it here in a new window, click OK, and this is the Arum line indicator. It's not widely used here in Brazil, but it's excellent because it demonstrates not only the trend but also the [02:54] strength of the trend. I'll show you how to use it. First thing, put a horizontal line at the 75 level. Then I come here to the position, I put, look, price 75. Now I click here on the line indicator, change the period to 72. In the [03:08] appearance indicator, man, I come here to the up indicator and change it to green and to the down indicator I change it to red. I'll click OK now. And here's the thing , man. If the green Arum line is above the red Arum line, it means the trend is upward. And [03:23] if, in addition, the green line is above the 75 level, OK? This horizontal line that we've placed here means that we have a strong upward trend. This is how we interpret this indicator in relation to the [03:38] upward trend, OK? Similarly, if the red Arum line is above the green Arum line, it means we have a downward trend. Furthermore, if the red line of Arum is above the 75 level, it means [03:52] that we have a strong downward trend. So, man, this is another way for us to identify the trend, which is the first pillar. I'll show you just one more example, okay? Because maybe, man, you [04:06] don't like footer indicators that much. So, we can use a footer indicators that much. So, we can use a doncha channel indicator. Then, here are the indicators; insert this indicator on your screen. So let's double-click [04:18] here, look, on the Doncha channel indicator . In properties, we change to 144 periods with a shift of one and remove here, look, the central average, okay? Click OK. Ready. Hey man, identifying the [04:32] doncha channel trend is really simple. Whenever the price is aggressively moving towards, look, the top of the doncha channel, you'll consider it to be in an uptrend. Now, every time the price is hitting the [04:46] bottom of the doncha channel, you're going to believe in a downtrend, understand? And you can find several examples of everything I'm Here's another example of a downtrend, as you can see now [05:01] , we have a good example of an uptrend. Look, OK? And here's a variation I really like from Doncha's channel, to finish off this first , and that's what you do, man. I double-click on the Doncha channel, [05:15] offset to 20, okay? And finally, I add an eight-period exponential moving average. I'll switch to exponential here, set the D1 offset to this moving average, and click OK. If the [05:28] eight-period moving average goes above the doncha channel, then I consider it an upward trend. So, from down here to up here, we've had an upward trend. In the previous trading session , the moving average remained [05:42] between the extremes of the Donch channel the entire time, meaning that in this case we considered it a sideways movement. And to wrap up our examples, dude, take a look right here. Look, the average was below that of the Doncha channel. So, [05:56] from this point on, we consider it a downtrend until the average returns inside the don channel. So, from here on out, we stop believing in the downward trend, understand? This, without a doubt, is the [06:08] variation I most enjoy using on the Donchon channel. So, man, that's the first pillar. Of course, there are dozens of other indicator and tool options, but I've given you some good examples so [06:21] you can choose which ones to add to your strategy, okay? Let's move on. Second pillar, confirm the trend. Dude, knowing the trend isn't enough. It is important to avoid false signals confirming the trend as much as possible. [06:36] you decided to use Donan's channel in the way I showed you, with the eight-period moving average here as well . What can you do to confirm this trend and minimize false signals? Hey, you can [06:51] use the flow diffuser indicator, okay? Click on the flow diffuser and insert it into a new window. You can use the default settings, okay? Changing only the colors. So here, for example, you can put green on this [07:04] first moving average, red on the second moving average, and yellow on the third moving average. Hey man, it would work like this. When the moving average goes above the doncha channel, well, you consider that the [07:16] trend is upward, right? But you need confirmation of this trend, man. And how does the flux diffuser indicator confirm this trend for you? Here's the thing, man. If you have the green average above the [07:29] red average, and the red average above the yellow average, it means that the flow diffuser is also showing an upward trend. So, in this case, he's confirming to us that it's an upward trend, you understand? [07:42] And in this way we can avoid many false signals, such as here, look, the moving average has even gone back above the doncha channel. In this case , look, it went back up the Doncha channel, but the flow diffuser [07:55] So, due to the flow diffuser, this trend wouldn't go very far. And he realizes that the price, well, it really did cause headaches. It didn't develop the upward trend like it did back here, look, when the [08:08] So, in this case, folks, look here, the moving average went above the Doncha channel, demonstrating an upward trend, and we had confirmation of that as well. From this point right here, man, the flow diffuser stopped [08:22] confirming the trend for us. So, man, we had the upward trend confirmed from this point to this other point here. From the moment the flow diffuser stops confirming the trend for us, well, man, we stop [08:35] believing in the upward trend, you know? So much so that the price after that just moved, you see, sideways. And you can find several examples like these working here in the chart. So, for example, [08:47] here, look, at this point, the moving average showed us a downward trend, since it went below, look, the Doncha channel. And if you look closely, the flow diffuser is confirming this downward trend. That's because, man, [09:01] here we have the green average below the red average, and the red average below the yellow average. This one here, man, is a downtrend sequence, OK? This means, then, that the flow diffuser, as I said, is confirming the [09:15] downward trend. And this confirmation of the downward trend, man, lasted until this downward trend lasted from this point to this other point here. So, dude, this confirmation will rule out a lot of false signals, okay? OK, man. [09:30] So, this is a way for us to identify and confirm the trend, the first pillar and the second pillar. Now, of course, if you have decided to use the Arum line indicator, you can also use the Doncha channel itself with a [09:43] D1 offset. If the Arum indicator is showing us a strong downward trend and the price touches the bottom of the Doncha channel, well , that means we have confirmation of the downward trend. [09:58] Beauty? Da mesma forma, cara, se você chegar no gráfico e você encontrar, por exemplo, aqui, olha, indicador Arum, demonstrando forte tendência de alta, como é o caso aqui, e o preço estiver tocando a parte superior do canal de [10:11] doncha, poxa, cara, a partir desse momento, você pode acreditar que a tendência de alta está confirmada, você tem muito mais chance de ter sinais verdadeiros do que de passar a ter sinais falsos. OK? Oh no, Pio, but I [10:24] don't want to use the Arum indicator, I don't want to use the Doncha channel. What I really liked was the slow stochastic oscillator. How can I confirm the trend of the slow stochastic oscillator? Dude, you can use three golden averages, which are the [10:37] use three golden averages, which are the cubed wire moving averages 34, 144, and 610. And then it's very simple, man. Notice here, the slow stoclastic indicator went above the 80 level, showing us an upward trend. And if you [10:51] look closely, the averages are also showing an upward trend. First, we have 34, then below 34, 144, and below 144, 610. From this [11:03] point on, it means the upward trend is confirmed, because all the indicators here are showing an upward trend at the same time. Hey man, the price has a better chance of developing in an upward trend, [11:16] stochastic indicator here showed us a downward trend at various points. Look, all these were false signals. Notice that the averages never confirmed the downward trend. They were [11:29] just demonstrating lateral movement, you understand? That's because, man, the averages here weren't crossed upwards, nor even crossed downwards, you understand? So they did not confirm the downward trend in this case. Now, in this case [11:42] here, man, yes. Look here at this point, the slow stochastic oscillator started showing a downward trend for us, and notice that the moving averages confirmed this downward trend. That's because we had here, look, 34 above 34, 144. Above 144, [11:57] look, 34 above 34, 144. Above 144, 610. So the averages confirmed the slow stochastic trend. Okay, dude? So this is the second pillar that every objective strategy needs to follow before opening any day trading operation. [12:11] Two pillars are missing. So now let's move on to the third pillar, the input signal. The entry signal I'm referring to in this third pillar is the most opportune moment within the trend to prepare to open the trade. Do you understand what I'm [12:26] saying, man? The most opportune moment is not yet the entry point, it's an entry signal. So, let's say you liked this setup here, where we used the Doncha channel, the eight-period moving average, and the [12:39] flow diffuser. To get an input signal, you can simply use, for example, colors. I'm going to put my coloring rule, the P Trader algorithm, here, man. I'll add it to the chart, click OK. This [12:53] is my coloring rule in the original version. I'm going to modify it to version two. Click OK. Hey man, here's the thing, when the average is below the Doncha channel, as is the case here, I know it's a downtrend and then I [13:05] observe the flow diffuser. Wow, the flow diffuser is confirming that the trend is downward. Cool, man. Now I need an input signal. I need to know when it's most opportune within this downtrend for me to [13:18] be looking for sales. And that's where my coloring, look, gives me here, look, a red candle. This red candle, according to my coloring rule, indicates an entry signal. When it's red, it's a [13:31] . I have the trend, I have confirmation of the trend, and I have a sell entry signal, understand? Here we have another example where everything fell into place. Look, the average was [13:43] above the Doncha channel, showing us an upward trend. The flow diffuser confirmed the upward trend. And here we had a candle that closed in blue. In my color theory, when a candle closes blue, that's when we [13:57] have an entry signal, in this case a buy signal. So, we had a sign here where everything clicked into place. We had another buy signal here where everything also fell into place. Alright, man? And as I said, you can find several [14:09] signs like that on the chart. Look here . Once again, the moving average is below the Doncha channel, indicating a downtrend, with the flow diffuser confirming the downtrend. And here we had a candle that closed red, giving us [14:22] see, man, that this works really well. Just pull it up here, look, working very well. Once again, look, the average was above the Doncha channel, an upward trend, the flow diffuser confirmed it. And at this point, [14:37] look, we had a buy signal before the price spike, since this candle closed in the blue. So, man, it gets really interesting to combine these three pillars within this setup. Also, if you'd like to hire me for hair [14:50] coloring, it's very simple. All you need to do is come up with strategies. Next, strategy store. Here you should search for PIO PO. You will find P trader algorithm coloring . You can click on this [15:04] blue button. This tab will open for you, dude. And in this tab you will also find an explanatory video about the Piltr Trader coloring algorithm. And obviously, you'll be able to choose the plan that best suits your needs. Next, you [15:17] click on "hire". Then you right-click on any candle, go to P Trader algorithm properties and change it here. Look, version D1 for two, don't change the period, okay? Click OK and you're done, [15:29] dude. Here is the coloring algorithm for P Trader in version 2. Now, if this setup doesn't suit you, well, you have other options, right? So, if you prefer this setup with the Arum line, here's the thing, man. Look, from this [15:42] point on, we know that we have a downward trend. When the price touches the bottom of the Doncha channel, it means we have confirmation of the third pillar is still missing, which is the entry signal. You can use [15:57] candlestick sequences, that is, if you have a sequence of four candlesticks touching the bottom of the Doncha channel, then you count three, four candlesticks touching the bottom of the Doncha channel. Exactly, man. You're going to count four [16:12] Exactly, man. You're going to count four candles that have touched the get an entry signal, understand? Once you have this sequence, it means the trend is strong, and that this [16:25] is probably the most opportune moment within the downtrend for you to look for sell opportunities, understand? So we have the first pillar, which is the Arum line indicator, showing a downward trend . The second pillar is the price touching [16:37] here, look at the Donche channel, the lower part, that is, confirming the enough, we have a sequence of four candles touching the lower part of the Doncha channel. So we also have the third pillar, which is the [16:51] entry signal for this sales scenario, you understand? And like I said, man, you can also find several examples of this setup in the chart. Look, at this point, folks, we had an upward trend according to Arum, a strong upward trend, the [17:04] first pillar. The second pillar is that the price touched, look, the upper part of the Donche channel, so the upward trend was already confirmed, but now you needed the third pillar, which is an entry signal. So you expect [17:16] the price to touch four times, look, four times in a row, at the top of the Doncha channel. And here we had, look, four sails that touched down in sequence at the top of the Doncha channel. Wow, man, that [17:29] 's a sign of strength in the trend, it's an entry signal, it's the most opportune moment for you to look for buying opportunities within your strategy, you understand? Ah, Pio, but I didn't like the Arum line, and I also didn't like the [17:42] doncha channel with the flow diffuser. What I actually preferred was the slow stochastic oscillator with exponential moving averages, right? The golden moving averages. No problem, man. In this case, I'm going to show you an entry signal using a [17:55] entry signal using a 1-minute timeframe, and we'll use a fourth and final moving average, okay? Okay, so let's put an eight-period moving average on your chart . This moving average is exponential, okay? With a displacement of [18:08] one, it can remain blue so as not to confuse our minds, right? And the idea behind this input signal, man, is very simple. Look, initially the slow stochastic oscillator was showing a downward trend, but the moving averages [18:21] weren't confirming it. Further on, the stochastic oscillator showed a downward trend , the first pillar, and the moving averages, look, at this point here, confirmed the downward trend, the second pillar. So now comes an incoming signal. And [18:34] simple. You wait for the eight- period moving average to cross above the 34- period moving average and then cross below again. So, notice that here, look, the eight-period moving average crossed above the 34-period moving average, [18:49] meaning the blue moving average crossed above the green moving average and then crossed below. This downward crossover, man, that the moving average made here, look, that's a sell entry signal, okay? That's because we have all the averages crossed [19:03] downwards, look. And we also have a slow stochastic indicator below 20. So, when we have this crossover here from the eight-period moving average to below the 34-period moving average, it's a sign of strength, it's a sell entry signal, [19:17] okay? So, from that point on, you would look for sales within your strategy, and you will, of course, find several examples of this working slow stochastic oscillator is showing an upward trend for us here. The averages confirm the [19:32] upward trend, hence the first and second pillars. Then, look, the eight-period and 34-period averages crossed over, meaning the eight- period average crossed below the 34-period average and then crossed above it again. Here, [19:47] buy entry signal. So, from the moment we have slow-moving prices showing an upward trend, the averages confirming it, and the eight- period average crossing above the 34- period average, well, then we have a [20:01] buy entry signal. We can believe that we are in a favorable moment within the upward trend to be looking for buying opportunities in our strategy, you understand? Alright, man? I've shown you clear [20:14] entry points now in this third pillar, and with that, we conclude this part. We are now moving on to the fourth and final pillar. Fourth pillar, entry point. Now that's more like it, man. Where exactly should we place the buy order in our [20:29] target strategy? Wow, man, if you know the trend, you have confirmation of the trend, you have an entry signal, now is the time to place your buy order at a support or resistance entry point. Well, man, I [20:43] showed you three setups, right? But let's say you liked this setup better, which is the setup where we use, right, on the 5-minute timeframe, the Doncha channel, moving average, flow diffuser, and the P Trader algorithm coloring rule [20:57] indicators, search for Stop ETR, insert your chart and you modify it here, look, to 0.50. Keeping the period at 20, I'll just change the color of the ETR stop here to make it easier to see. Click [21:13] OK. Hey man, this setup would look like this . Was the moving average first pillar, is an upward trend. The flow diffuser is confirming this upward trend. Cool, man. We then have the second pillar. The [21:27] upward trend is confirmed. A candle closed blue. OK, man. So, we have an input signal. We now need an entry point. And it's very simple, man. I would open my trade right here, look, at the green land stop. When the price [21:40] my buy order in place, waiting for it to be triggered, price had a much higher chance of doing this, look, of going up in an upward trend, you understand? So that would be my entry point for buying in this [21:55] setup. Similarly, of course, look, if I have a downtrend, that is, the average went below the doncha channel, first pillar, flow diffuser confirming the downtrend, second pillar, a candle closing [22:09] red according to the P Trader algorithm coloring , third pillar. I then go entry point. I'm placing my buy order right here, look, on Sopre Vermelho. So, when the price reached the red stop-loss level, I would already have [22:23] placed my sell order, expecting the price to hit the red stop-loss, thus sensing the resistance, because I would believe that the price would do this , look, fall, you understand? So that [22:35] would be the entry point I would use in this setup. But if you did n't like this setup, if you liked this other setup better, the Arum line setup, the entry point we could use here is [22:47] simply the highs and lows of the candles. What am I trying to say with this, man? Okay, so here's the deal, alright? The Arum line is showing us a strong downward trend here. First pillar, did the price touch the bottom of the [22:59] Doncha channel? OK. Confirmation of the downward trend, second pillar. Third pillar. We had here, look, a sequence of four sails that touched the bottom of the doncha channel. OK, man. Third pillar [23:12] that moment on, man, there's confirmation of the downtrend and I have a sell entry signal, I would simply place my sell order at the high of the candles until my sell order was [23:26] triggered. In that case, my sell order would be triggered here. I would use the highs of the candles as a selling entry point, you understand? So, in the sell order would be triggered here, look, at this point, because I would [23:38] believe that the price would do exactly that, look, continue falling. Precisely because in a setup like this, man, we clearly see that we have many more elements that make us believe in a downtrend [23:51] than in an uptrend. Because of that, I would sell it here. Similarly, my upward trend through the Arum, the first pillar, confirmation of the upward trend through the Doncha channel. Look, the price touched on the Doncha channel. And then if I have [24:04] a sequence of four candles touching the top of the doncha channel, wow, that 's more than enough for me to believe in buying, because I would already have here, man, three pillars pointing to the upward trend, indicating that it's the [24:17] time to buy. So I would place my buy order, look, at the lows of all the candles until my order is triggered. So in this case, the lows of the candles would act as support. So that's it, man. In this [24:30] setup, the entry point I would use would be the highs and lows of the candles, okay? Now let's move on to the last setup, which is the moving average setup. Sometimes you preferred this setup. This setup makes more sense to me when [24:44] used on a 1-minute timeframe. And the entry point I would use here would be the eight-period moving average itself . Pio, but what do you mean, man? No problem, I'll show you now. Look , in this case, we had the [24:58] showing us a downward trend. Here we had the second pillar because the averages confirmed the downward trend. The third pillar was given here, look, since the average crossed upwards and crossed downwards. So here we [25:11] entry signal, and the fourth and final pillar would be the entry point. So, man, after I have these three pillars, what would I do? I would place the sell order at the eight-period moving average itself . So, when the average crossed [25:26] downwards here, I would already see that my sell order was correct and I would place it at the in this case here, look, our order would be triggered at this point. I would do that, man, because the four pillars here would be demonstrating to us that [25:38] this happen. Look, that makes more sense, right? Similarly, of course, if you're in an uptrend, look, the slow stochastic oscillator is showing us an uptrend, moving averages are confirming the [25:51] uptrend, in other words, we have the two pillars here. Further on, the eight-period moving average crossed below the 34-period moving average, then crossed above it again. pillar, which is the buy entry signal in this case. And then the fourth and [26:06] final pillar would be the entry point at the eight-period moving average itself. would place my buy order at the eight-period moving average, because I believe, man, that the price has a much greater chance of continuing to [26:19] rise than of starting to fall. Beauty? So, the entry point for this setup would be at the eight-period moving average, OK? Dude, notice how by applying these four pillars you can build a solid foundation to create [26:33] objective and potentially consistent day trading strategies. Yes, man, what I've shown you here is a solid foundation so you can create your own objective day trading strategies. It needs to go through these [26:47] four pillars, but you can't stop there after you create your own setup. You still need to determine the asset, i.e., mini- index, mini-dollar. You also need to determine the target and stop-loss levels for your [27:01] trades. You also need to set goals and limits, both daily and monthly, and run backtests for months or sometimes even years so that you can validate your setup. And of course, create criteria for [27:16] updates so you can adjust or pause your strategies when they lose effectiveness. So, when they start to perform poorly, because that will happen at some point, you pause the strategy and you update [27:30] the strategy. With time and practice, my friend, you'll master this process and become increasingly adept at building solid, adaptable, and objective strategies for the market. But of course, my friend, if you want to skip these [27:45] steps and already have a ready-made, tested, and validated strategy that uses my Pilsar method, then you need to join the Pilsar Method 3.0 challenge now . You have three days to unlock your Pilsar 500 setup. And the best part is, it's 100% [28:01] free. The link is in the description of this video. And dude, I really hope this has turned a key in your mind and helps you create clearer and more objective setups. So, if this video helped you in any way, [28:14] man, please leave a like, subscribe to this channel, and turn on notifications, because I'm not going to rest until you become a successful trader or achieve your goal. I'll be staying here, man, and see you in the next video. [28:26] Hey, today I'm inviting you to participate in the Pilsar 3.0 method challenge, three days to unlock the Pilsar 500 setup. There will be three 100% free classes with [28:38] a single objective. At the end of the challenge, you will receive the complete Pilsar 500 setup day trading game. In the first lesson, we'll focus entirely on the chart, using target price action, parabolic SAR, and moving averages cubed, so that [28:54] you can see trends and reversals clearly and objectively, without guesswork, OK? In the second lesson, we'll build a portfolio of strategies and robots together so you can attack the market from multiple fronts [29:09] simultaneously, thus increasing your chances of success in day trading and , of course, protecting your capital. In the third and final lesson, we will conclude the objective of the challenge. You will unlock the PIAR 500 setup. You will [29:23] receive all the settings, step-by- step instructions, and statistics for this setup. 100% free, no strings attached, you'll receive this setup which is part of my Pilsar method. And there's more! Anyone who participates in all three live classes will [29:38] have the chance to receive a super, everlasting bonus, man. Something I've never offered before that can completely transform your journey as a trader. To secure your spot, it's very simple: tap the link below and [29:52] register now. Only those who are registered for the challenge will be notified when classes begin. So come with me, buddy, and take part in the Pilsar Method 3.0 challenge. Three days to unlock the Pilsar 500 setup. [30:09] [Applause] Yeah.