BackBurner Indicator by TheChartGuys

Every trader knows the feeling. You

watch a stock rip to the upside without you and it just keeps running. FOMO

kicks in and then when you eventually buy, that ends up being the short-term top. There's no obvious pullback along

top. There's no obvious pullback along the way. There's no clear stop level to

the way. There's no clear stop level to utilize if you're to enter and it feels like you're chasing, [music] which means you usually are. The Back Burner proprietary indicator created by the chart guys is built exactly for this

situation. Instead of chasing for the

situation. Instead of chasing for the move, you put the ticker on the back burner and you wait for the indicator to let you know when the proper period of consolidation has taken place to allow for a better riskreward entry. I've been

trading over 15 years at this point and this is easily my most profitable trading strategy. I first utilized it

trading strategy. I first utilized it during cryptocurrency in 2017 when we were exploding to the upside, running thousands of percent and allowing for jumping in and out and profiting on the

way up while ensuring I didn't become a bag holder. I then transferred this over

bag holder. I then transferred this over to stocks and I used it in the cannabis euphoria market and then in AI and semiconductor euphoria and it continues to work on a bunch of different time frames whether you're interested in day

trading or swing trading. So we took that trading strategy and a few years later we built this indicator that is integrated on trading view. It works on all these different instruments whether it's stocks, crypto, commodities,

[music] etc. And it works in both directions. I prefer the long side to be

directions. I prefer the long side to be trading along with the breakout ideally blue sky all-time highs. [music] But

observing in the 2022 bare market, there were plenty of opportunities where it helped us pinpoint lower highs when in a downtrend from the short side. So in my opinion, the best use of this indicator is on the long side. When you're in an

uptrend on every single time frame, ideally in blue sky breakout when you're in that price discovery, the charts going straight up. There's slim to no pullbacks along the way. And most people are watching from the sidelines,

uncomfortable entering because their thought process, rightfully so, is if I buy here, where is my stop? And the

price is already up x%. I don't want to be buying now. But then once we wait for the first period of meaningful consolidation, we then look for the shorter term time frames to be oversold

that often mark the longer term time frames higher low pivots for continuation of that uptrend. And the

invalidation is very clear where once that oversold bounce starts going, the low of that pullback then needs to hold and the stop can go under that level.

And you could say if we drop to a lower low from here, that invalidates my thesis. we're not still in breakout mode

thesis. we're not still in breakout mode and I need to then zoom out and look for the consolidation on a longer term time frame. I can't tell you how many times

frame. I can't tell you how many times in my career I have made money in something that is breaking out that is already up hundreds or sometimes even a,000% plus. [music] And again, it's not

a,000% plus. [music] And again, it's not chasing because every single trade has its own thesis and invalidation point.

And I'm laying out the risk and reward of this trade. But again, it's just better timing the entries for that risk-to-reward to be more favorable versus [music] just buying as it's going straight up.

This isn't some kind of complex strategy. We want to keep it simple.

strategy. We want to keep it simple.

Under the hood, the back burner indicator is checking the trends on all these different time frames, the momentum, and of course, the short-term volatility and the overbought and oversold conditions as they line up. And

as we know, multiple time frame analysis dictates that trends on shorter term time frames can mark the pivots on longerterm time frames. For example, 5m

minute oversold marks an hourly higher low [music] for continuation. Hourly

oversold marks a daily higher low. We

care more about those longerterm time frames if it's more of a swing trade mindset. So it works on day trading, it

mindset. So it works on day trading, it works on swing trading, just dependent on the time frames that you're focused on. And of course, this is a probability

on. And of course, this is a probability tool, not a guarantee. You still need risk management and a trade game plan.

So, I highly suggest checking out the in-depth video about the back burner trade strategy so you understand the nuances and can then apply the indicator more appropriately. Add it to your

more appropriately. Add it to your trading view. Start with small capital

trading view. Start with small capital or even paper trading to get your reps in so you can eventually size up and have it lead to a more meaningful impact in your trading results. [music]

in your trading results. [music]