How To Interprete Trade Triangle Chart Analysis Scores In Swing Trading

MarketClub’s Trade Triangle Chart Analysis Score is a proprietary tool that measures trend strength and direction based on 5 different timing thresholds. This tool takes into account intraday price action, new daily, weekly and monthly highs, and moving averages. This score will dynamically update as new highs/lows occur or intra-day price action wills.

What do the Trade Triangle Chart Analysis Scores mean?

+100 : Strong uptrend is in place and this market will likely remain in a long-term positive direction.
+90 : Positive in long-term. Look for this market to remain firm. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders
+85 : An uptrend is in place. Intraday, intermediate and long-term trends are pointing in a positive direction, while the short-term trend is in a downward direction.
+80 : An uptrend is in place. Although the intraday, daily, weekly and monthly trends are all pointing in a positive direction, the current market action has fallen below the 20 day moving average.
+75 : The market may be in some near-term weakness. This market is still a long-term upward trend with intermediate and longer-term trends pointing to a bull market, but short-term and intraday terms point to a bearish movement. Keep tight money management stops.
+70 : This market remains in the confines of a longer-term uptrend.
+65 : Although the long-term positive trends are strengthening, the intermediate-term could signal the start of a major downtrend. You may want to keep your money management stops tighter than you normally would. You may also want to incorporate an alternative technical analysis study on your short-term chart to confirm the “Trade
Triangle” signals.
+60 : This upward trend may have lost momentum and may be reaching a crossroads. You may see choppy market conditions in the near-term. Trend for the intraday, shortterm, intermediate and long-term are not aligning in a stable direction. This would be a time to move onto the sidelines until a steady trend returns.
+55 : The trend of this market may be moving into a trading range. Trend for the intraday, short-term, intermediate-term and long-term are not aligning in a stable direction. This may be the time to move onto the sidelines until a steady trend returns.
+50/-50 : The trend is at a crossroads, and the momentum is faint if even there at all. Look for near-term choppy trading conditions and consider taking a sidelines position until a steady trend returns.
Trade Triangle
-55 : The trend of this market may be moving into a trading range. Trend for the intraday, short-term intermediate-term an long-term are not aligning in a stable direction. This would be the time to move onto the sidelines until a steady trend returns.
-60 : The downward trend has lost momentum and is reaching a crossroads. You may see choppy market conditions in the near-term. Trend for the intraday, short-term, intermediate-term and long term are not aligning in a stable direction. This would be a time to move onto the sidelines until a steady trend returns.
-65 : Although the long-term negative trend is strengthening, the intermediate-term could signal the start of a major uptrend. You may want to keep your money management stops tighter than you normally would.
-70 : This market may be experiencing some near-term strength. However, this market remains in the confines of a longer-term downtrend.
-75 : This market may be looking at some near-term rallying power. This market is still in a long-term downward trend with intermediate and longer-term trends pointing lower, but short-term and intraday-term pointing to a bull market. Keep tight money management stops.
-80 : A downtrend may be in place. Although the intraday, daily, weekly and monthly trends are all pointing in a negative direction, the market action has moved over the 20 day moving average.
-85 : A downtrend is in place. Intraday, intermediate and long-term trends are pointing in a negative direction, while the short-term trend is in an upward direction.
-90 : This score suggests that a weak downtrend is in place. This market is likely to continue in a downward direction unless new weekly highs are made. Use proper money management stops as this market may change rapidly.
-100 : A strong downtrend is in place and this market will likely remain in a long-term negative direction.

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Indrajit Mukherjee

Indrajit is a professional blogger and Trading System developer, Amibroker expert, WordPress expert, SEO expert and Stock market analyst. He is studying the stock market since 1995 and is an active trader since 2000. He started the journey of StockManiacs.net on 2008. He follows Indian and world markets as well as the forex market closely.

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