First, you want to go to tradingview.com and launch a chart.
Once you have your chart open, click on the indicators tab --> invite only scripts --> and click on the "SimpleAlgo" indicator
Now that you have the indicator enabled, lets talk about some of the key features that are included in the system.
There are many ways to use the Energy Cloud to your advantage. One way is to buy or sell the security when the Energy Cloud crosses colors. For example, if the energy cloud crosses over from red to green, that is indicating that there is a chance that the trend is changing and you may want to buy. Another way you can use the Energy Cloud to your advantage is by treating it as a support or resistance level and playing the bounces. For example, if the ticker is in a strong up trend you would want to buy the dip/play the bounce every time it retraces back over to the green energy cloud.
Support and Resistance lines are values unique to every ticker/market. These values are identified if the market of interest has "touched" this value multiple times. "Touch" means that the market has either bounced off a value, has had a hard time breaking a certain value/price, or when the market has broken and retested this value. We then use these Support and Resistance lines or "S&R" lines to help us break up the market into channels allowing us to know how much the market can move and when is the optimal time to enter/exit the market. However, this takes a long time to manually identify and draw you S&R lines. The Dynamic Support and Resistance Indicator will automate all of that process for you. It is adaptive which means as the market moves the Indicator will calculate any new lines or change Support and Resistance Lines as they are broken
We have color coded the Lines to quickly show if they are a Support line or a resistance line.
The Reversal cloud helps indicate when a market is showing oversold or overbought signs and where it may potentially reverse. Some of the calculations to create these bands entail derivatives of averages. This then helps us pin point Reversal Patterns.
We can see in the below screenshot highlighted examples of when the market/candles reach the top or bottom of the Cloud. We normally can expect a pullback or a reversal eventually. We can see in the below examples that a pullback or a reversal occurred eventually.
The Reversal Cloud works on every time frame but for the most entries use lower timeframes.
Having a hard time identifying the trend of the Market?
The Auto Trend Line Indicator allows you to read the linear regression of the market. In other words, you are able to read the market. It is important to always know and be able to identify the Trend or Direction of the Market. "Trend Trading" is known to be one of the most common forms of trading. You may hear the trading sayings like "trend is your friend" or "trade with the trend". All of these sayings refer to the Trading Strategy of taking Trades in the Same Direction as the overall trend of the market. This means if the market is trending bullish then we will only be looking for trades that are bullish and vice versa for bearish trending markets, only looking for bearish entries.