The ONLY 2 indicators I use to make $34,194/Month Trading transcript

I made just shy of half a million dollars in 2025 and over a hundred thousand dollars so far in 2026 day trading stocks and in this video, I'm going to show you the two indicators that permanently changed the way that I look at price action and I can promise you you have heard of both of them. These aren't secret tools. This isn't an underground trading strategy. They're two of the most basic indicators on the planet and that's exactly the point.

You're probably thinking I'm going to teach you how to use MACD or RSI or VWAP or stochastics or Fibonacci or ATR or some other really fancy indicator, but you are wrong. What I'm going to show you is simpler than anything you've ever seen in your trading and I'm going to teach you how to set up these indicators on your charts. I'm going to show you how I make well over a thousand dollars per day using them and by the end of this video, you'll be able to apply everything that I'm about to teach you into your own trading plan almost immediately.

If there's one video that you should watch until the end this week, make it this one because once you see how simple this truly is, you'll never look at charts the same way again. Okay, let's not waste any more time and let's hop right into the video. So first, I'm going to show you how to set up these indicators on your charts and from there, I'm going to teach you exactly how I use them every single day and I'm going to show you how to do this on TradingView.

However, this could be applied for any trading platform that you want to use and I'm sure you've seen all of these fancy sounding indicators within your trading platform you are using. For example, on TradingView, we have the Aroon oscillator. We have the chandelier exit. We have the Ichimoku cloud. We have this performance indicator. We have the RSI divergence indicator and you're looking at all of these fancy sounding indicators and you ultimately don't know which ones to actually use.

So what do you do? You end up experimenting with all of them and next thing you know, you have a hundred lines on your charts. You know, everything is cluttered. There's clouds. There's channels moving through price action and there's so much information on your charts that it leads to analysis paralysis where you don't know which indicator to actually focus on and it over complicates your process. It over complicates your trading and your decision-making and you want to do the exact opposite.

You want your trading to be as simple as possible. That's exactly what my father taught me almost 6 years ago when he mentored me on how to trade. He taught me that the simplest things in life are often times the most brilliant and that applies to business and it also applies to trading. So, what I want you to do is look up moving average, okay? And you're going to see a bunch of different options, but what I want you to do first is click on the simplest one.

Click on simple moving average once and you're going to see SMA 9 close pop up in the top-left corner. That's exactly what you want to see. From there, you want to click on moving average exponential and you're going to see EMA 9 close also pop up in the top-left corner and I'm going to explain the difference between an exponential moving average and a simple moving average in just a second, but first I want to get everything set up on your charts and you should see something like this.

Now, what you want to do is hover over SMA 9 and go to settings. And what you want to do is click on inputs and change the length from 9 to 20. And from there, I also want to change the style. I do like a blue 20 MA. However, I like my line to be a little bit thicker, so it's a bit more noticeable on my charts. So, I'm going to click on that. It's going to make the 20 MA a little bit thicker, and I'm going to press okay.

And this is the 20 period simple moving average. Now, go to the 9 EMA, go to settings, and when you go to inputs, you don't want to change anything. You want to keep everything the same. You want a 9 EMA. The one thing we are going to do is change the style. I'm going to make this one also pretty thick, and I'm also going to make this a bright color. I usually like to make it orange. Now, I am a little bit color blind.

I don't even know if this is orange, but let's just go with this and press on okay. So, now I have the 9 EMA on my chart, and I have the 20 SMA on my chart. And you're probably already noticing the power of the 9 EMA in this instance, and you're seeing how well prices are respecting the 9 EMA. But now, I want to go a lot more in-depth on exactly how you could use the 9 EMA and the 20 SMA in your trading. And especially when you use them together, it creates a really powerful combination.

And this can sync really well with your strategies. It could really complement your trading. And keep in mind, the purpose of indicators is to complement your ability to read price action. You are not supposed to be entering or exiting exclusively off indicators, right? So, I want to make that very, very clear before I continue this video. You should never be buying or selling strictly because an indicator is telling you to do so.

These are meant to complement your analysis. So, let's talk about why I like to use the 20 SMA and the 9 EMA. And as a trader, I like to trade in the direction of where prices are already going. I like to trade with the trend. I'm sure you've heard the expression that the trend is your friend, and it's super cliche to say that. However, most traders like to trade against the trend, and that's one of the biggest beginner mistakes that you can make.

A lot of traders try to pick tops and bottoms with precision, and that is difficult because ultimately you're going against the trend. So, if you're a beginner trader, my recommendation is trade with the trend, and that's exactly why I like to use the 20 SMA and the 9 EMA because these are some of the most effective trend following tools in existence, where I'm able to use these moving averages, and I'm able to number one identify what the trend is on multiple time frames, and from there I'm able to time my entries by using the moving averages as well.

And real quick, before I break down exactly how that works and what you want to see, >> [snorts] >> I want to talk about the general differences between what an SMA is and what an EMA is. So, a moving average in general finds the average price of an asset over a specific period of time, okay? And the main difference between an SMA and the EMA is that an SMA puts equal weight across every period when it's calculating that average.

However, an exponential moving average puts more weight on the most recent price action that occurred, and I don't want to get into the details and go into the math side of how these moving averages are calculated. That's not really important, but a 9 EMA basically puts a lot more emphasis on recent price action. So, it's able to catch up a little bit quicker to price. It doesn't lag as much as the 20 period simple moving average.

So, the 20 SMA is like my medium-term moving average to see what the general trend is. And from there, I like to use the 9 EMA as my short-term moving average to see, you know, exactly what is going on with price from a very, you know, in-depth perspective, okay? So, both of these work in almost the same way. And here's what you're looking for. If you are looking to go long, or if you're identifying an uptrend, you want to see the 20 SMA rising, and you want to see the 9 EMA, and I'm going to make this a different color, you also want to see this rising as well.

And what you'll notice is that the 9 EMA is always going to be above the 20, because the 9 EMA, of course, it reacts quicker, because number one, it's an exponential moving average that puts more weight on recent price action, but it's also the 9-day, right? Versus the 20 SMA. This is 20 periods versus nine periods. Of course, nine periods, it's going to move quicker relative to what prices are doing. So, you want to see the 20 SMA and the 9 EMA under prices and trending higher.

And if you're able to identify this on multiple time frames, and if you have a clear bullish catalyst, where maybe there was a gap up on a stock. A gap up is an overnight change in price. As an equities trader, I really like to trade gaps. So, every single morning when I create my, you know, morning watch list, I like to look for gap ups, and that gap is usually a bullish catalyst, and I'll try to find an entry to potentially enter in long if I do see a setup, okay?

So, if there's a bullish catalyst, or there's a clear, you know, uptrend on a stock, I want to see the moving averages under price and trending higher. And if you're able to see this on multiple time frames, what you'll notice is that prices will begin to respect these moving averages, and you can time your entries off of these MAs where you'll know notice that prices will move up and pull back right into the 9 EMA. Or you'll notice that they'll move up and they'll pull back right in between the 9 EMA or the 20 EMA like this or maybe they move up and they pull back to the 20 EMA, okay?

And you can basically time your entries and gauge where we are in the current trend by evaluating where is price relative the 9 EMA and the 20 SMA. So, that's what I like to do. I like to time my entries off of these moving averages where sometimes we have a move up and we consolidate right into the 9 EMA right here and that could be a potential entry point. Or sometimes we consolidate in between and I've noticed that this little space in between the 9 EMA and the 20 EMA, if you have an uptrend on multiple time frames and price action consolidates or retraces into this space, that is kind of like a buying area and that's where I like to time my entries into my trades where it'll consolidate right in between this space in between the 9 EMA and the 20 SMA and I will look to potentially go long.

And I'm going to show you a ton of examples of this happening, but it's really important that both of these moving averages, the 9 EMA and the 20 EMA, are rising and under price. You don't want to see the moving averages flat, okay? So, you don't want to see the 20 EMA flat and you also don't want to see the 9 EMA flat. If they're flat, that suggests a lack of a trend, essentially. Prices are sideways. There's no momentum, and you'll notice that price action will, you know, quite literally be sideways during this kind of time.

So, you don't want to see the moving averages flat. You want to see them under price and trending higher. And the same thing applies if it's a downtrend. If it's a downtrend, then you want to see the 20 MA over price trending lower, and you want to see the 9 EMA also over price trending lower. And you'll notice that prices price action will respect these two moving averages and even trade off of them. And this is exactly how I time my entries.

Another concept that you need to know is if we're super far away from the moving averages, you could use that to measure extension. So, what is extension? Extension is the idea of being overbought, right? So, here's an example of that. Let's say there's, you know, an uptrend, and all of a sudden prices start to accelerate from the 9 EMA and from the 20 EMA. And prices are right here, and all of a sudden we're super far away from these moving averages, right?

This is called extension. That is the distance between price and the moving averages. And I don't want to be buying. I don't want to be timing my entries when prices are extended because you could think of it as we are overbought. You know, what I want to do is I want to wait for prices to correct. I want to wait for prices to consolidate, correct, retrace, and I want to see these moving averages begin to catch up to price, you know, the 9 EMA and and the 20 EMA as well.

I want to wait for them to catch up to prices, and that's when I can begin timing my entry to potentially go long. So, if we're super extended, if there's a lot of distance between price and the moving averages, I don't want to be buying, right? I want to wait for prices to cool off before I time an entry. Real quick, if you resonate with this video, I have hundreds of hours of free education on the internet, not only on this YouTube channel, but I also have a free 10-plus hour trading course that is genuinely better than most paid courses on the internet. to teach you my system, it's going to teach you my strategies, and it's going to build the foundation for your success.

Take advantage of it. You can get access for free directly below this video in the description. And if you are looking for something a little bit more serious, you want to take your trading to the next level, and you need a hands-on mentor, I do personally help scale and coach traders from zero to consistently profitable, where I take my students under my wing, and they learn how to trade by actually doing it with me on a daily basis, and they honestly see life-changing results.

So, if you are a little bit more serious about your trading journey, and you need that hands-on mentor, you could book a free consultation call with one of my trading advisers directly below this video, also in the description. Now, I want to show you some real-life trades that I've taken over the past few weeks, and I want to show you how I was able to apply the 20 SMA and the 9 EMA in my trading. Now, I want to emphasize one more time, I am not exclusively trading off of these indicators.

I am using them to complement my trading plan. Trading is not about using a couple of indicators and taking all of your entries just off of those indicators. No, it's about combining several concepts together to identify and trade high-probability setups, and that's exactly what I do with these moving averages. They're not driving my decisions, they're complementing my decisions. But, I want to show you a trade that I took on the AGAE.

This was April 15th. This was relatively recent, and this made me a little bit over $5,700. And the AGAE, we're going to start off by looking at the daily time frame, had an overnight gap up. And that gave me a bullish bias on the day. This was on my bullish watch list. This wasn't even a favorite stock for me. I just wanted to keep an eye on it throughout the day, but this had a 58% gap up. It gapped from 32 cents the previous day, and the next morning it opened at around 52 cents.

So, as I was scanning my watch list around an hour into the day, I saw on the 15-minute time frame that we retraced, we pulled back directly into this rising 9 EMA, and of course the 20 EMA is rising directly below it as well. I found that pretty interesting. So, from there I checked multiple time frames, and I went to the 5-minute time frame. And I noticed that we actually retraced perfectly into the 20 SMA that is rising.

And as soon as I noticed that, I found that even more interesting, right? And I went to the 2-minute time frame to look for a potential entry. And I saw it right here, where we were, you know, right on the 20 SMA on the five, and we're also at the 9 EMA on the 15. And on the 2-minute, I saw we moved up, and we consolidated right into the 9 EMA on the two. And my first entry was over 45, stop loss below this base. So, this was a really tight base breakout.

It started to move in my favor, and from there I added to the position right here. So, notice that we retraced right into the 20 EMA, and we started to bounce. And this kind of area between the 9 EMA and the 20 SMA, that was an excellent potential kind of add opportunity for me. So, I added to the position right here. We made the next move and we retraced where? Right in between the 9 EMA and the 20 SMA. Now, notice how the 9 EMA started to decline a little bit right here and that may have been a red flag, but it's all good because the 20 EMA, that's kind of my medium-term moving average, it's still rising.

It's still under price and it's still trending higher. And we respected it really well. So, this was actually my final add for the position where we moved up, retraced the 20 EMA. We were in between the 9 and the 20 and from there this had an amazing move to the upside. Even on this pullback right here, we moved up and we retraced right into the 9 EMA and then we made that next leg higher. And I had about 20,000 shares at an average of 50 cents because I added multiple times and I got out at around 79 or 80 cents.

So, I didn't quite catch the top. That's fine. My goal isn't to catch the top for every single trade that I take. My goal is to follow my trade management plan and my trade management plan called for, you know, I took a little bit of profits at 75. I took one lot at 90 and then I took another lot at 80 and it ended up averaging out to an exit around 79 cents. But yeah, beautiful trade and I was able to use the 9 EMA on the 15.

Right as soon as I saw that, I went to the smaller time frames to find a potential entry and we were respecting the 20 EMA on the five, beautiful. And from there I saw an entry on the two where we consolidated right into the uh 9 EMA right here. So, notice how I'm using multiple time frames. I'm not just relying off one time frame. I'm using these moving averages and I'm looking at the 15. I'm, you know, determining what what is the setup on the 15.

And from there I go to the five and I go to the two to look for potential setups to essentially solidify that bias that I had on the 15-minute timeframe. And keep in mind that on the daily timeframe, there was an overnight gap up. So, I already had a bullish kind of bias for this stock going into the stock market open. Let's take a look at another trade that I took on April 10th. This was the OGN and this made me just shy of $3,200 in the afternoon, actually.

And this stock was on my bullish watchlist because it had an overnight gap up from 690 and the next morning it opened at around eight bucks. This was a 16% gap up. This wasn't a favorite for me going into the market open and I actually took this trade well into the afternoon. But first, I want to show you what the two-minute looked like in the morning and I didn't really capitalize off of this move, but you could see how well prices are trading off of the 90 EMA right here and the 20 SMA right here as well.

And I actually took this trade off the 15-minute timeframe in the afternoon. And the 90 EMA wasn't really useful for me off this setup right here, but we have a nice move up 40 to 60% retracement. We have multiple entry bars basing into this rising 20 SMA and I took this as a long over these entry bars, so over 838. Stop loss was 829. And I think I got like 6,000 shares. I was risking about 600 bucks on a 10-cent stock.

And I added to the position over this consolidation right here where we moved up and we consolidated and I added over this base right here. I think I also had an add off the two-minute timeframe. Right here because we broke out and we retraced into the rising 20 MA on the two. And I actually added right here, and then I added over the base. And I moved my stop loss up from this original point to 844. And I was able to catch this move to the upside.

But you can even see off the two minute how well it's respecting the 20 MA, right? And this is why I like to use the 9 EMA and the 20 SMA in tandem. If you look at the five-minute time frame, you can see how well prices are respecting the 9 EMA right here. So, that's why I like to look at multiple time frames and see what prices are doing relative to what the moving averages are doing. But this was a beautiful, what I call, buy setup.

This was a nice retracement setup. We moved up, we pulled back, based right into the rising 20 SMA, long over these entry bars, and my target was the prior high. And this was a beautiful retracement setup, and the moving averages really complemented this trade. So, I showed you a couple of wins, but now I want to show you a losing trade that I took yesterday. And hopefully this can really emphasize that you should never be exclusively relying off of these indicators.

They are meant to complement your trading plan. And although I did not solely take this trade because of the 9 EMA or the 20 SMA, I still want to prove this point. And I lost about a thousand dollars on the Beyond yesterday morning, but to be honest, I'm absolutely okay with the loss. I would have taken this trade every single day of the week. Losing is a part of the game, and I had a lot of conviction in this setup.

And the results are a little bit wacky because I traded it yesterday, and then I also traded it today. But this specific setup lost me about a thousand dollars. And funny enough, I actually made money on the Beyond the previous day. And that's what kind of motivated me to trade it yesterday. All right, so I made money on this day where it rallied from 83 cents to 116. I scalped it over a dollar and caught a quick move in the afternoon, and then all of a sudden the next morning it gapped from 116 to 138.

And I didn't really go over the 200 SMA in this video. I have other videos where I do break down how to use the 200 SMA. I also cover it in my free 10-plus-hour course, but I thought that that was target here where we had a nice gap up and the next target on the daily time frame is the 200 SMA. So I thought, you know, we could have gotten a nice pop from 138 to around 160 or 155. That was my target. And I went to the 1-minute time frame and I saw this setup right here where the stock opened, it dropped, it attempted to break down and failed.

And the way that I can see that is because I am looking at a bottoming tail. A bottoming tail suggests that the buyers have taken control. The sellers attempted to bring prices lower and failed. And whenever I see a bottoming tail or a failed breakdown, or you can call it a shakeout on a consolidation like this, it just really amplifies the setup. And on top of that, it was basing right into the 9 EMA on the 1-minute time frame.

So I thought this was a slam dunk. I went long over 134 and I put my stop loss at 128, and I was risking about 6 to 7 cents and I was targeting around 160. So that's about 25 cent reward on a 6 to 7 cent stop. So, you know, R-to-R was excellent. I loved the failed breakdown, the shakeout bar, perfect. It consolidated rather nicely into the rising 9 EMA. 20 EMA is also rising, and we had room on the daily. So, I thought this was a slam dunk, and it started to go.

It triggered over 35, and it was really struggling to break over 140, and that was going to be my next ad. I was going to, you know, add to the position a little bit and see if we can get some more continuation. And as soon as it started to go, it essentially instantly failed, and I had to take a loss on this. Now, it did retrace into the 20 EMA imbalance, but I didn't take this setup because it failed on the previous breakout.

So, I lost about a thousand bucks, and to be honest, I really sized up on this trade because I saw the failed breakdown. I liked the daily. I liked this base right into the 9 EMA. I thought it was super high probability. It was a high conviction setup for me, and unfortunately, it just didn't work. But, uh yeah, hopefully, you know, I'm sure maybe there's some people that saw, "Oh, rising 9 EMA, we got a base into it.

I'm going to go long." Right? Like, that's not a strategy in itself. If you did that, if you took this trade just because it had a rising 9 EMA and it based right into it, you would have lost as well. Let's take a look at one more example that unfortunately, I wasn't able to capitalize on, but this was an unreal move a couple of weeks ago on the AIXI. And this just proves how effective these moving averages can be if you find a bullish stock that has an established uptrend.

This stock rallied from 12 cents all the way to 269 in a matter of three days. And just take a look at this 15-minute timeframe. And look at how well this stock respected the 9 EMA on the 15-minute timeframe. It opened on this day, and it retraced right into the nine, made a nice rally, retraced again into the nine that afternoon, and produced an amazing rally. And even the next day, right? Basically, every single retracement into the nine ended up getting bought, and the stock continued its move to the upside.

Take a look at the five-minute right here. And of course, this has to be applied on multiple timeframes. But, look at how well it's respecting the 9 EMA right here. And then the next morning it opens and it retraced right into the 9 EMA on the 5-minute time frame. And I actually got in right here, but I ended up mismanaging my position. I got in over a dollar stop loss. Uh I think it was about 92 cents. And I ended up getting out way too early.

But, even here we moved up, retraced right into the 9 EMA, and then continued higher. And later that day the stock just went absolutely bonkers. I did not catch this at all. But, you know, that's the power of these moving averages. If you could find a stock that's clearly uptrending or downtrending, you could use these two your advantage to measure extension and to figure out exactly where you should be timing your entries.

And by the way, here's a great example of extension. Like, if I'm looking at price action right here, we are far away from the 9 EMA, but we are even further away from the 20 EMA. So, I would never be looking to, you know, enter in long after the stock is basically up, you know, 850% in a matter of 3 days and we're this far away from the 9 EMA and the 20 SMA. And usually when I'm measuring extension, I'm mainly looking at price relative to where the 20 EMA is.

Hopefully, you found a lot of value in this video. Just add these two indicators on your charts and you'll begin looking at price action with a lot more clarity. And remember, never rely off a single indicator. These are meant to complement your analysis. And if you did enjoy this video, make sure you leave a comment with feedback, make sure you leave a like, and make sure you subscribe to the channel for more trading education, and make sure you get started with my free 10-plus hour trading course.

Thank you so much for watching. I'll see you on the next video.