3 indicators that stop losing money
45sThe promise of a simple filter to avoid fighting trends resonates with beginners who fear losing money.
▶ Play ClipAI Summary
This video presents a 1-minute trading strategy built on just three indicators: EMA 20, Supertrend (period 7), and RSI (period 7). The creator emphasizes understanding the purpose of each tool rather than blindly adding them, and explains how waiting for all three to align creates high-probability buy and sell signals.
Chapters
[00:01]
Three Indicators Only
The strategy uses exactly three indicators: EMA 20, Supertrend (period 7), and RSI (period 7). The creator stresses understanding why each indicator is used, not just adding them.
[00:14]
EMA 20 as Trend Filter
EMA 20 acts as a line in the sand. Price above EMA 20 means only look for buy setups; price below means only look for sells. This prevents fighting the trend, a common beginner mistake.
[00:41]
Supertrend for Momentum
Supertrend (period 7) visually confirms momentum. When below candles, momentum is upward; when above, momentum is downward. It provides real-time, no-guess confirmation.
[01:06]
RSI as Momentum Gauge
RSI (period 7) is faster than the standard 14, suiting the 1-minute timeframe. The 50 level is used as a midline: above 50 means buyers control momentum, below 50 means sellers do.
[01:36]
Triple Confirmation Entry
Entries require all three indicators to align simultaneously. For a buy: price above EMA 20, Supertrend below candle, RSI above 50. For a sell: price below EMA 20, Supertrend above candle, RSI below 50.
[02:07]
1-Minute Expiry
The strategy uses a 1-minute expiry, matching the candle timeframe exactly.
Tutorial Checklist
1
00:01
Add EMA 20 to your chart. Use it as a trend filter: only look for buys above it, sells below it.
2
00:41
Add Supertrend with period 7. Use it to confirm momentum direction (below candle = up, above = down).
4
01:36
Wait for all three indicators to align. For a buy: price above EMA 20, Supertrend below candle, RSI above 50. For a sell: price below EMA 20, Supertrend above candle, RSI below 50.
Study Flashcards (7)
What are the three indicators used in this 1-minute strategy?
easy
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What are the three indicators used in this 1-minute strategy?
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EMA 20, Supertrend (period 7), and RSI (period 7).
00:01
What is the role of EMA 20 in this strategy?
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What is the role of EMA 20 in this strategy?
easy
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It acts as a trend filter: price above EMA 20 means only look for buys, below means only look for sells.
00:14
How does Supertrend indicate momentum direction?
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How does Supertrend indicate momentum direction?
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When Supertrend appears below the candles, momentum is upward; when above, momentum is downward.
00:41
Why is RSI set to 7 instead of the standard 14?
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Why is RSI set to 7 instead of the standard 14?
medium
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A faster, more responsive setting that suits the 1-minute timeframe better.
01:06
What are the three conditions for a buy setup?
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What are the three conditions for a buy setup?
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Price above EMA 20, Supertrend below the candle, and RSI above 50.
01:36
What are the three conditions for a sell setup?
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What are the three conditions for a sell setup?
hard
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Price below EMA 20, Supertrend above the candle, and RSI below 50.
01:51
What expiry is used in this strategy?
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What expiry is used in this strategy?
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1 minute, matching the candle timeframe exactly.
02:07
💡 Key Takeaways
⚖️
Trend Filter Prevents Losses
Explains the core reason behind using EMA 20: avoiding the common beginner mistake of fighting the trend.
00:14
🔧
Triple Confirmation Rule
Emphasizes waiting for all three indicators to align, which is the key to the strategy's effectiveness.
01:36
💡
Matching Expiry to Timeframe
Highlights the importance of aligning trade expiry with the candle timeframe for consistency.
02:07Full Transcript
[00:01] step-by-step. You only need three indicators on your chart. And I want to explain why each one is here, not just tell you what to add, because when you understand the reason behind each tool, you'll use it a lot better. The first
[00:14] one is the EMA 20. The 20-period exponential moving average. Think of this as your line in the sand. If price is trading above the EMA, we're only looking for buy setups. If price is below it, we're only looking for sells.
[00:28] That's it. This one simple filter stops you from fighting the trend. And fighting the trend is where most beginners quietly lose their money without even realizing why. The second indicator is Supertrend, set to a period
[00:41] of seven. This is your visual momentum confirmation. When the Supertrend line appears below the candles, it's telling you momentum is leaning upward. When it flips and appears above the candles, momentum is leaning downward. No
[00:54] guessing, no interpretation. It's right there on the chart in real time. And the there on the chart in real time. And the third one is RSI, also set to seven. A faster, more responsive setting that suits the 1-minute time frame much
[01:06] better than the standard 14. We're not looking at overbought or oversold here. We're simply using the 50 level as our midline. RSI above 50 means buyers are in control of momentum. RSI below 50 means sellers have taken
[01:22] over. Simple, clean, and easy to read under pressure. Now, here's where the triple in triple momentum really comes to life. We don't act on one signal. We don't act on two. We wait patiently until all three agree at exactly the
[01:36] same moment. For a buy setup, price needs to be above the EMA 20. The Supertrend must be appearing below the candle, and RSI must be reading above When all three of those conditions are true at the same time, that's your buy
[01:51] window. That's when you enter. For a sell setup, it flips completely. Price needs to be below the EMA20, super trend must appear above the candle, and RSI must be below 50. All three aligned, that's your sell zone. And the expiry
[02:07] we're working with here is 1 minute, matching the candle time frame exactly.
