Transcript
0:00 The TBO, the Trending Breakout Indicator, is the best trend-based indicator that I've ever used. I've been using this thing since 2019, and did you know that there's actually a pro version of the TBO? The reason why I don't use this on every single daily crypto market update video, of which this is not... Sorry to burst your bubble there. But I think this is still a valid point of information because the reason why I don't share the TBO pro every single day is I don't want people to feel like they're missing out because the TBO as it stands is fantastic.
0:30 It's great. But for people that want an edge on trend based trading, especially with the TBO and to customize a lot of it, that's where the TBO Pro comes in. One of the coolest things about the TBO Pro that I like is actually this fact that there's a built in system or a tracker, I guess you could say, to give us a sense of an idea of where we are, where we've been, and what we should be expecting next.
1:01 Now that's kind of built into what the normal trending breakout indicator does, but the TBL Pro has a couple of extra bells and whistles that I think are worth our attention and time. Namely, it's this floating area up here. Well, it's not floating. It's just the table that's up there. I have to zoom in a lot so you guys can see this on mobile. So here's the thing. This table shows us a couple of things. It tells us if the price is above the cloud or below the cloud, how long it's been above the cloud, and in terms of the price and the baseline, how long we should be expecting the TBO to be above the cloud, and how far we should be expecting it to trend above or below the cloud based off of the last 50 trends.
1:51 So there's a built in trend based, I guess you could say like a counter or a ticker. It's, this is one of the coolest things about it. So why is this helpful and useful? Well, we're going to go back a little bit over here to explain why real quick. for instance, back over here, in August, when things started to pump and go crazy and BTC was going super duper crazy, You can see up here, it gives us a couple of, a couple of bits of useful information.
2:20 For starters, we know that time-wise, after Bitcoin had pushed above the cloud on the 19th of August and it's been above the cloud for 18 days, over here it says 17 bars that aligns with what we're counting or measuring, which is at 0.94x the baseline. What does that mean? that based off of the last 50 trends, the baseline length of time for Bitcoin on the daily timeframe to be above the cloud is 18 bars. Which if we go forward one, then now we're at one times the baseline. So why is this important? Well, when we know that we are getting close to the baseline performance of either either the time or the price, distance the move above or below the cloud, we have a couple of good clues that we should start scaling out, or we can have confidence to scale in knowing that it's still a new trend.
3:18 You'll also notice here that just below time, there's also one here for price. Again, I have to like zoom in like crazy, where it gives us an idea of the price in terms of how mature the price is. And again, we have a baseline expectation. So our baseline here is 13%. So given this past move back on September 7th, when this happened, this was 1.43 times above the baseline. So not only was Bitcoin at this time overextended from the fast line, like I was talking about a lot at that time, it was also way above normal in terms of price performance and action.
3:59 And one of the reasons why this is helpful is that once we go up and down and up and down and out of the cloud, we get a real quick sense of where we are in regards to the previous moves. Actually here, I'm gonna go right over there. So you notice this move right here, it says it's early still, it's 1% whatever. We're gonna go ahead one, there we go, 8% above. So really close to knocking it up to that 13% move.
4:29 It's not gonna happen, because we know what happens next. But again, it gives us an idea of the strength of the trend. It lets us know, well, we've been above the cloud for 14 bars, which is the normal time is 18 bars. So we should be seeing some sort of a pullback soon into the cloud, which does happen. There's our one X baseline, and then it falls inside the cloud like magic. You'll also notice that we have these different tags or these labels that are here.
4:57 These are actually, this is something new that was developed specifically for the TBR Pro, which is giving us basically a maturity rating. So yes, we can hide or show that context table up in the top right. And we have these M and X markers, which stands for mature or extended. What does that mean? It has to do with price action. So we're actually gonna go back over here to May. So you'll see here in May, we're just gonna play it out one candle at a time.
5:29 So we now have a confirmed move above, below, excuse me, the cloud, and we're seeing it and we're expecting a baseline move of 9% based off of the last previous 50 trends, okay? So even though it's a negative value, we're still expecting a 9 there. And what's going to happen real quick is that you can see where it says time and price are early up here. I know it's really tiny, but just bear with me. Real quick, it's going to switch to mature and that's where that M comes into play.
5:57 It's mature because the price has gone crazy low. It's overextendable. It's not yet overextended. We don't have the X yet. There. Now we have the X. When we see these mature, the M's and the X extended symbols pop up. This is a reality check saying, -oh, this trend is getting a little bit crazy. There's a really good chance that this is way, way, way out of the norm.
6:27 And we can see that here because, let me zoom in again, it says up here, this is 2.2 times the baseline in terms of the normal price move, which is nine or 10%. So it was down 22%. In terms of how long this took to develop in terms of time, it's basically right there on baseline. So we know that this move was crazy overextended and that both the time and the price were very mature in terms of their interaction with the cloud.
6:59 And notice wicking the cloud doesn't count. It has to close inside of the cloud, which it eventually does back over here. So now we have a reminder that based off of the time, we are way above the baseline for the time and for the price telling us that we should see some sort of a bounce back into the cloud soon. And there we go, then it's reset. And that last move is taken into account and it's also recorded over here so that way we know moving forward.
7:28 And as I was kind of alluding to earlier, this doesn't actually have to stay on the daily timeframe. This can work just as well on the four hour timeframe. The numbers are going to be very, very different. If we go to the current day right now. So right now you can see that it tells us that we're inside the cloud on the four hour timeframe. It's giving us an idea based off the last 50 trends that our baseline time above or below the cloud is 11 bars, which is what, 44 hours, and the move is about 2.61%.
8:02 Now, on the faster timeframes, we're gonna see things change a lot earlier. For instance, back over here in September, if we were to use again the look back tool, which is really helpful, That way we can see how things looked back then. To give us an idea of time and price in terms of the baseline. We had a mature signal here on the 21st, an extended signal here on the 21st as well, just a couple of hours later.
8:29 Not only was the price going super duper crazy, we're going to keep going. it was three times above baseline in terms of the price and in terms of time is basically at 2X. So we know that we are due for some sort of a corrective move. the higher this goes. So this is really helpful in terms of us trying to figure out, okay, this is a really, really interesting, exciting trend. Things are going well, like say back over here, but I'm worried or I'm concerned that I missed the move because it feels like we've already gone up so, so far.
9:07 But the reality is that when we have something like this that's counted the last 50 trends we know where we are in terms of baseline performance and time, well, actually, no, we're not early at all. We can still participate in this trend and then we get some reminders. You might want to start scaling out. You might want to start scaling out before you get trapped. And then inevitably it has a pullback down into the cloud. Now, I do want to make a comment about this in regards to timeframes.
9:33 The longer the timeframe, the stronger the signals. We can use this on the weekly timeframe. One thing though to be aware of is that if I'm not mistaken, I don't remember any maturing or extended moments here just because the weekly is the weekly. But what's really helpful is that we have a pretty good idea in terms of our baseline and our counters to know when we're below the cloud what's the normal amount of time to be below the cloud and vice versa what's the normal time to be above the cloud.
10:08 And this is going to be helpful when we start really ripping and roaring. For example, if we go back over here to 2023 November on the weekly, keep this in mind. So we're looking at the last eight trends. The baseline is 17 weeks above the cloud. The baseline move is 92%. By this time, it was still early at 45K. Therefore, we have the confidence to enter. Even when things are feeling a little bit sketchy, we can enter knowing that it's not too late to enter into this trend.
10:41 And lo and behold, what happens, we get some breakouts, which is telling us be prepared for a big fat upturn, which definitely happens. We go all the way up to 69K. And then now we're looking at the price and the time, both getting super crazy. We've hit 20 bars, which is above our baseline. We've hit 102%, which is above our baseline. By this time, we should start scaling out of our position or securing some profit, which in hindsight was the exact right thing to do in March.
11:12 So another thing that's really interesting about the TBO pro that's different. And this is just one of the newer things that's been added recently. but one thing that's also really fun is you can change all of the moving average, all moving averages for the TBO. Keep in mind, you'll want to, we have some guides for you guys. We're not just leaving it out to dry. another fun thing is, oh, I don't want to get into that too much.
11:38 We're going to do this guy over here. So I really like this actually. we can adjust the length of the RSI and this will change our support and resistance levels. Now the default, again, the default is solid, but what's really fun is that we can start to manipulate these numbers to see if we can get some more optimal settings for both. support and resistance. Now the lower the number's gonna be, the noisier it's gonna be, but this is also helpful because if you guys are watching the videos, you know that I'm a real big fan of when the price closes above resistance.
12:12 But if our RSI at length on the standard version of being 14, it takes a long time for that to happen. If we could put it in half, well then we're gonna get those bullish confirmations and those breakouts a lot sooner. Note that this does vary timeframe to timeframe. It will very much change and be affected. We can even change the RSI threshold offset as well, which makes it again, more responsive. And we can have some stronger moves, again, highlighting very strong pivot highs and pivot lows.
12:44 And this is actually more useful and more beneficial, I think, on faster timeframes. Because when we have the ability to customize support and resistance on the four hour timeframes, this is gonna allow us to mess around a lot with the trend and to play inside of all the support and resistance moves that are happening. So that way we can establish quicker support and resistance. That way we can mess around and find and optimize the best possible levels.
13:12 That way we can trade inside of the trend without having to wait a super long term for the price to break above or below. Another really fun addition as well, or rather an upgrade, is actually the TBO breakouts, which is where we get the namesake from for the indicator trending breakout indicator. So there are actually two other different models that are available for breakouts, whether it's a Bollinger brand, sorry, a Bollinger band breakout, or it's RSI based momentum breakouts, and it will change the location of these breakouts.
13:47 Let me try to go back over here. So looking at our default again, I personally like the default, but for those that want to explore and play. Bollinger bands and also RSI momentum is going to place it differently, whether it's early or late. But one of the other cool things that's great about this is that you can add way more of these breakouts and breakdowns. So that way you're getting more confirmation. More isn't always better. And again, there's a reason why I like just the standard version.
14:13 It works really, really well. So these are just a couple of things that are really fun about this. The one thing that's, okay, I'll show you one more thing. That's pretty interesting. And it's this, the DHP volume signals. Now, aside from the mature and extended markers, there's another thing that we can use to literally flag when we have extreme price action in terms of buying and selling with an above average volume flag.
14:49 And this is really handy. It's not a one size fits all thing. You will have to play around with it. You will have to configure it the way you want it to be. But essentially the idea of this is to flag or highlight moments where volume is just really crazy. Whether it's a dump or it's a pump to let us know, we might want to just ease up a little bit in terms of our expectations or to highlight a really overbought or oversold moment in the chart.
15:15 So we're gonna focus on this guy right here. Just give me a second. There we go. So we can mess around and manipulate these variables a lot. So that way we can get something that's not super duper noisy, but something that's going to just give us a nice fat slap in the face. So that way when we're looking at the chart, we're going, wow, this feels really good right now. All of these are letting you know, careful, you're very short term overbought or careful, you're very short term oversold.
15:42 I know there's going to be a lot of signals popping up on the TBO Pro, But that's the reason why it's the pro and I don't use this all the time because I don't want to overwhelm you guys with signals and a bunch of extra context. But for all of you that are looking for the pro version, the pro version is available in the club. So I talk about the club every single video. It's great for many reasons.
16:04 You have to get lots of TBO alerts. You have to get lots of other tools and goodies. But in the pro version of the Better Traders Club subscription, you get the TBO pro indicator and the TBO pro back tester. The what? So basically it's a back tester that allows you to back test strategies for bot trading specifically using elements of the TBO to go long, to go short, to have fixed take profit targets, to use different elements of the TBO to make an entry or use it for entries and exits.
16:35 So that way you're actually trend trading with this strategy. And speaking of trend trading with that strategy, you'll need something to trade on, while Kashi's not supported, I do need to give you guys a heads up that call sheet is one of the best ways that you could earn a $500 trading bonus by signing up with the link down below. It will help to pay if you win for the pro subscription, for the TBO pro. And if you sign up to call sheet with my link down below and you trade $50 on call sheet perps, a winner is chosen every single week and that winner receives a $500 trading bonus.
17:10 And even just trading on call sheet perps with $50, you get a $25 kickback bonus for first time signups on the perpetual market, sorry, on the perpetual futures markets and also on the prediction markets. Now, I wanna just reiterate that the TBO Pro is not like you have to have it. And as I said, I'm very comfortable and very happy for basically 99% of the time to use the TBO. But for all of you that wanna leg up, whether it's in terms of trend trading, whether it's in terms of highlighting super oversold, super overbought, super mature, or extended moments in the market, the TBO Pro literally does not do it any better than anything else you'd find out there.
17:52 So again, you get access to that through the better traders. Now I know that this video is a little bit different, but we are getting into a moment in the market. where it's really important to have as much information as you possibly can about developing trends and when charts are pumping to get some reminders on the chart aside from RSI, on-balance volume and volume in general. This is why having the TPR Pro could become very, very helpful to make more money on the pumps and to protect money on those pumps in case they starts to revert back down.
18:23 But this is exactly what happens in every single recovery year cycle. And that's actually what I want to talk to you about next, the recovery year is now. It started four months early, which is insane, but the idea of the recovery year is simple. This is the best time to build a portfolio that actually can 10X. You might not believe me. I need you to watch this next video to learn how the recovery year really can set yourself up for life-changing wealth over the next one to two years.
18:52 Watch this, and until the next time, you know what to do, stay awesome, and stay in the green. Peace.