Get a FREE Superior Artificial Intelligence Indicator – 10X More Effective Than Moving Average

When I first discovered this AI indicator on trading view, I was shocked at how accurate it was. Almost every signal it gives results in a winning trade if used correctly. This simple trading strategy can grow your account exponentially in no time. The best part about it is that it is easy to master.

Check out these winning trades you could have made with this indicator by trading Bitcoin. This strategy works best for day trading cryptocurrencies, stocks, and Forex on 5, 15, and 30-minute charts. The Artificial Intelligence Moving Average indicator I’m about to show you adapts to current market conditions, giving you only high-quality trade entries and no valid signals in a ranging market.

Traders, if you enjoy my content, please like this video and subscribe to Trade IQ if you haven’t done so yet. On this channel, I explain the newest and most accurate trading strategies in the easiest way possible. If you’re looking to further improve your trading skills and follow expert guidance, consider joining the Easy Algo Community. They offer the two most advanced technical analysis indicators that will make you a market genius. In addition, you will get access to a VIP Discord community where you can chat, get support, copy other trader signals, and learn trading skills ten times faster. Hundreds of traders make consistent profits with Easy Algo, and you can be one of them. Click the first link in the description and secure your spot today.

Let’s return to our AI moving average trading strategy. For this strategy, two trading view indicators will be needed. The first indicator is called AI Moving Average Expo by Zyerman. This is a trading tool that uses an AI-based K Nearest Neighbors algorithm to analyze and interpret patterns in price data. It combines the logic of a traditional moving average with artificial intelligence, creating an adaptive and accurate indicator that identifies strong trends and key market levels.

Here’s how it works. The algorithm collects data points and applies a KNN weighted approach to classify price movement as either bullish or bearish. For each data point, the algorithm checks if the price is above or below the calculated moving average. If the price is above the moving average, it’s labeled as bullish, and if it’s below, it’s labeled as bearish. This combination of data collection, labeling, and KNN weighted classification turns the AI moving average indicator into a dynamic tool that can adapt to changing market conditions, making it suitable for various trading strategies and market environments.

In the indicator settings, we have multiple configuration options. The first block includes AI settings. For this particular strategy, I like to set the neighbors count at 10 instead of 5. Data points should also be raised to 30. Increasing these numbers will make the indicator more resilient to market noise. The next step is to change the moving average type. Instead of a simple moving average, I recommend using the weighted MA. The most optimal length is 100.

The AI moving average works in the following way. When the price is closed above the MA and the lines are green, the market is in an uptrend. On the other hand, when the price is below the MA and the lines are red, the market is in a downtrend. The blue line indicates a sideways trend. AI moving averages can also act as support and resistance.

The trading strategy I’m about to show you is based on identifying these key price levels. For instance, when the price rises above the MA for the first time and the lines turn green, this signals the beginning of an uptrend. At this price, it wouldn’t be a good idea to buy the stock because the security might be overbought after the strong bullish pressure.

A far better strategy is to wait for the price to retest the AI moving average first. A continuation trend is likely if the price respects this level and bounces off. If the candlestick exceeds the moving average, no trades should be taken. However, the signal is only valid on the first pullback. It is recommended to wait for the next trend if the conditions are not met on the first price retracement to the MA.

I’ll demonstrate plenty of trade examples in a minute. Before that, we’ll need to apply the second indicator to the chart, which will tell us exactly when to buy and sell. The tool is called Extreme Reversal Signal by Inga Forberg. This simple-to-follow indicator gives buy and sell signals based on RSI, Bollinger Bands, and SMA. You can customize the inputs as you wish. I like to keep them default.

If you use this indicator alone, it can produce many fake signals, and you’d probably blow up your account in no time if you took every trade this indicator gives. That’s why it is highly recommended to use this tool in combination with price action. The Extreme Reversal Signal and the AI moving average indicators work very well together.

Let’s discuss the exact rules for opening buy and sell trades. We’ll start with a long trade. As I mentioned earlier, to buy the stock, we must first wait for the price to rise above the AI moving average and then pull back. We only consider buying on the first pullback. This is very important. The candlestick should touch the MA during retracement.

Another critical thing you should remember is that the price must slowly return to the MA. Any sharp moves to the downside signal strong selling pressure. Basically, the angle between this ABC pattern should not be lower than 90 degrees. A buy signal issued by the Extreme Reversal Signal indicator is your final confirmation. Set the stop loss below the green box or at the recent swing low. Target 1.6 times the risk. As soon as a sell signal appears on the chart, close a portion of the position.

In the next example, we can see the trend has switched from bearish to bullish. The next step is to wait for a better price to buy. In other words, a pullback to MA. Check the ABC pattern angle. Ensure it is not sharper than 90 degrees. Keep an eye on the price during a retracement. It must remain above the MA. Finally, look for a buy signal.

Your money management should remain the same every time you trade. Do not risk more than 3% of your capital per position. Let’s see how this trade plays out.

It’s time to learn how to go short with this strategy. First, look for a bearish trend shift. This is confirmed by a red background and the price position below the MA. Second, wait for the price retracement to the AI moving average. Third, make sure the ABC pattern angle is 90 degrees or higher. Avoid sharp price corrections. Lastly, wait for a sell alert. Apply the same money management strategy as for long trades.

Thank you. Here’s another example of a perfect short trade. As we can see, all the conditions were in place. I recommend leaving a bit more room for the stop loss, especially if you trade in shorter time frames. You can use an ATR indicator. The stop loss should be placed at the distance of at least 1.5 values of the ATR.

That’s all there is to it, traders. If you have questions or ideas about how to enhance this trading method, leave a comment down below. Backtest this or any other trading strategy you learn on my channel before trading with real money. Thanks for watching. Till next time.