Home Forex Market UT Bot Alerts The Most Accurate Buy/Sell Signal Indicator on TradingView

UT Bot Alerts The Most Accurate Buy/Sell Signal Indicator on TradingView

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UT Bot Alerts The Most Accurate Buy/Sell Signal Indicator on TradingView
UT Bot Alerts The Most Accurate Buy/Sell Signal Indicator on TradingView

UT Bot Alerts The Most Accurate Buy/Sell Signal Indicator on TradingView: A 100% Profitable Scalping Strategy

Introduction

Discovering this indicator on TradingView was a complete game-changer. Its remarkable accuracy transforms nearly every signal into a winning trade when used correctly. The best part? It’s completely free and easy to master. In this guide, we’ll provide you with an exact blueprint on how to turn this indicator into a profitable trading strategy, along with two more powerful tools that will give you a significant edge over your trading competitors.

The Indicators and Strategy Setup

Step 1: Setting Up the UT Bot Alerts

  1. Open TradingView:
    • This strategy works exceptionally well for day trading cryptocurrencies, stocks, and Forex on any timeframe above 5 minutes. For example, use GBPUSD on a 15-minute chart. You can use any pair of your choice.
  2. Add the UT Bot Alerts Indicator:
    • Go to the indicator section and search for “UT Bot Alerts” by Quant Nomad.
    • Add it to your favorites for easy access.
  3. Adjust the Settings:
    • Open the indicator settings.
    • Set the Key Value to 3 and the ATR Period to 1.

Step 2: Setting Up the Linear Regression Candles

  1. Add the Linear Regression Candles Indicator:
    • Search for “Linear Regression Candles” by uguru.
    • Add this indicator to your chart.
  2. Adjust the Settings:
    • Uncheck the LinReg box.
    • Increase the values to 16.
    • Go to the Style tab and thicken the white line for better visibility.
  3. Change Candle Type to Heikin Ashi:
    • This will smooth out the chart and eliminate some false signals.

Step 3: Using the Hawkeye Volume with Volume Spike Alert

  1. Add the Hawkeye Volume Indicator:
    • Search for “Hawkeye Volume with Volume Spike Alert”.
    • Add it to your chart.
  2. Interpret the Histogram:
    • In trending markets, the histogram bars will be larger and either green or red.
    • In sideways markets, the histogram displays small gray bars.

How the Indicators Work Together

  1. UT Bot Alerts:
    • Provides clear trade entry points with buy and sell signals.
  2. Linear Regression Candles:
    • Confirms the UT Bot signals and helps identify stop-loss levels.
  3. Hawkeye Volume:
    • Confirms momentum, filtering out trades in sideways markets.

Trading Rules and Strategy

For Long (Buy) Trades:

  1. Buy Signal from UT Bot:
    • Wait for a buy signal.
  2. Trend Confirmation:
    • Ensure the price is above the Linear Regression Baseline.
    • The Hawkeye Volume histogram should be green and above the orange trigger line.
  3. Set Stop Loss and Take Profit:
    • Place the stop loss at the Baseline.
    • Set the take profit at a risk-reward ratio of 2:1.
  4. Exit Rule:
    • Exit 100% of the trade if the price crosses back below the Baseline before hitting your stop loss or take profit.

For Short (Sell) Trades:

  1. Sell Signal from UT Bot:
    • Wait for a sell signal.
  2. Trend Confirmation:
    • Ensure the price is below the Linear Regression Baseline.
    • The Hawkeye Volume histogram should be red and above the orange trigger line.
  3. Set Stop Loss and Take Profit:
    • Place the stop loss at the Baseline.
    • Set the take profit at a risk-reward ratio of 2:1.
  4. Exit Rule:
    • Exit 100% of the trade if the price crosses back above the Baseline before hitting your stop loss or take profit.

Example Trades and Results

Example 1: Long Trade

  1. Signal: UT Bot gives a buy signal.
  2. Confirmation: Price is above the Baseline and Hawkeye Volume histogram is green and above the trigger line.
  3. Action: Enter a buy trade.
  4. Stop Loss: Set at the Baseline.
  5. Take Profit: Set at a 2:1 risk-reward ratio.
  6. Outcome: The trade hits the target.

Example 2: Short Trade

  1. Signal: UT Bot gives a sell signal.
  2. Confirmation: Price is below the Baseline and Hawkeye Volume histogram is red and above the trigger line.
  3. Action: Enter a sell trade.
  4. Stop Loss: Set at the Baseline.
  5. Take Profit: Set at a 2:1 risk-reward ratio.
  6. Outcome: The trade hits the target.

Backtesting and Results

We backtested this strategy over 100 trades, and the results were extremely promising. Using a professional backtesting tool like Trader Edge allowed us to get results three times faster compared to manual spreadsheets. This tool also helps track monthly performance and individual trade setups, ensuring no results are lost.

Conclusion

This strategy is highly effective for capturing significant price moves before they take off. However, it is crucial to avoid using it in sideways markets where it can produce multiple losing signals. By incorporating the Hawkeye Volume indicator, you can filter out these unwanted trades and focus on the big moves.

For those interested in trading reversals, we have additional strategies available. If you found this guide valuable, don’t forget to hit the like button and subscribe to our channel for more trading strategies and tips. Good luck, traders!

Simeon Bala
Author: Simeon Bala

An Information technology (IT) professional who is passionate about technology and building Inspiring the company’s people to love development, innovations, and client support through technology. With expertise in Quality/Process improvement and management, Risk Management. An outstanding customer service and management skills in resolving technical issues and educating end-users. An excellent team player making significant contributions to the team, and individual success, and mentoring. Background also includes experience with Virtualization, Cyber security and vulnerability assessment, Business intelligence, Search Engine Optimization, brand promotion, copywriting, strategic digital and social media marketing, computer networking, and software testing. Also keen about the financial, stock, and crypto market. With knowledge of technical analysis, value investing, and keep improving myself in all finance market spaces. Pioneer of the following platforms were I research and write on relevant topics. 1. https://publicopinion.org.ng 2. https://getdeals.com.ng 3. https://tradea.com.ng 4. https://9jaoncloud.com.ng Simeon Bala is an excellent problem solver with strong communication and interpersonal skills.

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An Information technology (IT) professional who is passionate about technology and building Inspiring the company’s people to love development, innovations, and client support through technology. With expertise in Quality/Process improvement and management, Risk Management. An outstanding customer service and management skills in resolving technical issues and educating end-users. An excellent team player making significant contributions to the team, and individual success, and mentoring. Background also includes experience with Virtualization, Cyber security and vulnerability assessment, Business intelligence, Search Engine Optimization, brand promotion, copywriting, strategic digital and social media marketing, computer networking, and software testing. Also keen about the financial, stock, and crypto market. With knowledge of technical analysis, value investing, and keep improving myself in all finance market spaces. Pioneer of the following platforms were I research and write on relevant topics. 1. https://publicopinion.org.ng 2. https://getdeals.com.ng 3. https://tradea.com.ng 4. https://9jaoncloud.com.ng Simeon Bala is an excellent problem solver with strong communication and interpersonal skills.