Golden Triangle strategy setup is a variation of the buy-the-dip strategy, by Charlotte Hudgin. You can find the detailed explanation here by Thomas N. Bulkowski thepatternsite.com/GoldenTriangle.html
BUY === 1. price should be trading above sma50 2. when it touches sma50 first time , check the starting rallypoint of where it initiated 3. from the above point to current close , see if you have white space , then draw the triangle 4. then check for volume confirmation ( current volume should be greater than last 4 ) --- I have slightly changed this to fit into hourly strategy by adding condition close>vwap
EXIT ==== 1. Exit when close crossing down sma50 with at least 2% profit (slightly modified original condition)
StopLoss ======== 2. stop loss is set to 6%
Warning ======= For the use of educational purposes only
Release Notes
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1. I have added "Show All Triangles" parameter --- by default this is turned OFF. what does this mean if a LONG position is taken , next possible Trinagle is not drawn on the chart. If you want to see all Triangles irrespective current LONG position , please check it ON
2. Exit Rule has been modified --- Earlier exit rule was close crossing down sma50 with at least 2% profit. Now it has been modified to EXIT when VWAP is crossing down sma50 . This modification has increased the performance , profit factor and decreased number of Bars
3. I have also noticed that for growth stocks/FAANG , increasing the stop loss to 8% will keep you in trade to achieve better profit factor. I tested it for AMZN and AAPL on hourly chart
Release Notes
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> Trailing stops has been added ... strategy uses this for Long entries , only when Trend is Up > Risk capital parameter has been added ... to find out the quantity of units to be purchased based on stop loss units > initial stop loss line has been added ... purple color line
>comments added in entry and exit ... shows the stop loss value on entry and shows the profit point at exit
> Background color is changed , if the trade is in long position
Great script! Thanks for sharing! This reminds me of another uncommon Japanese triangle analysis method: the elimination point. Some people call it a mysterious black hole.
@pezevenginiz, you didn’t understand the strategy or the script ? Ask the question, I can help
siredward10
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@mohanee, i get it now but i guess this indicator or strategy or whatever you say is not working well for cryptocurrencies because of volume? i dont know though still works very well for stocks.
siredward10
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@mohanee, but hats off to your rsi indicators. it works well on cryptocurrencies, i will definitely try it. thanks for everything, sir.
gkawa22
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hello. Thank you got the indicator. Why only longs and not shorts also?
iksanoj
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great work have not seen a strategy like this before ie without any drawdown hatsoff to you sir