Understanding the market’s narrative is essential for effective trading—and Daniel from Trading Indicators breaks it down into a straightforward 3-question framework that every trader can adopt.
1. What is the current trend?
Daniel starts every analysis by identifying the direction of the market. Is it bullish, bearish, or sideways? Using the MA Rush indicator, he visually confirms trend direction with simple chart labels—making it easy to trade in alignment with market momentum.
2. Where are the key support and resistance levels?
With the help of Liquidity IQ, Daniel pinpoints crucial price levels where the market tends to react. Knowing where price is likely to bounce or break can make the difference between a winning and losing trade.
3. Where is the action happening?
Volume is king—and not just over time, but over price. That’s where the Volume Profile Indicator comes in, highlighting high-volume zones that slow price action and low-volume zones where price accelerates. Daniel uses this to time entries and exits with precision.
By combining these three tools—MA Rush, Liquidity IQ, and the Volume Profile Indicator—Daniel creates a clear story for every chart, whether it's crypto, commodities, indices, or metals. He even shows a live example with Bitcoin futures, offering a textbook setup for a bearish short trade.
Want to see how it’s all done in real-time?
Watch the full video to learn more!
