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How To Use Marketclub Trade Triangle For Swing Trading?

Market Club Trade Triangle

Marketclub Trade Triangle technology is Marketclub’s exclusive indicator. It has been tested and implemented on the Indian stock market and commodity market by StockManiacs Research & System Pvt Ltd. This framework uses a multi time frame approach to generate trends on three different time frames. By confirming the trend on more than 1 time frame, you are putting the odds to support you that you will be on the winning side of the swing.

What is Marketclub Trade Triangle?

Marketclub Trade Triangle is a proprietary tool by ino.com that measures trend strength and direction on 5 different time frames. This tool takes into account intraday price action, new daily, weekly and monthly highs, and close above or below moving averages. This score will dynamically update as new highs/lows occur or intra-day price action.

Marketclub Trade Triangle method is not expected to get tops and bottoms. It rather recognizes the larger part of a swing pattern. The triangles will not consider pattern quality, however, they are best used when you have a noteworthy pattern set up. You can utilize the Chart Analysis Score or other specialized technical analysis methods to guarantee the pattern quality is fitting for trades.

  • UP Trade Triangle recommend positive pattern.
  • DOWN Trade Triangle recommends the negative pattern.

Below are some proposed strategies for fusing the Marketclub Trade Triangle into your trading technique.

For LONG-TERM traders:

By and large suggested for Equities, ETFs, Mutual Funds, and Indices. A new 3-month high or low is the Monthly Trade Triangle and focusses on the long term trend. The last Monthly Triangle formed is used to determine the long term trend. If the Monthly Triangle is UP, you can use it as a potential entry point to a long position. You would then use the following DOWN Monthly Triangle as your potential exit point. If you were using a “stop and reverse” system, you could use this DOWN Monthly Triangle as a potential entrance to a short sell position.

For MEDIUM-TERM traders:

By and large proposed for Equities, ETFs, Mutual Funds, and Indices. Monthly Triangles focus pattern and main entry points. A new 3-week high or low forms the Weekly Triangle and focusses on timed exits and re-entries. The last Monthly Triangle formed is to be utilized to recognize the general pattern. If the Weekly Triangle is UP, you can utilize the UP Monthly Triangle as a potential entry point to a long position. You can use the following DOWN Weekly Triangle as your potential exit point. You can use the next Weekly Triangles as re-entries and exits as long as the Monthly Triangle stays UP.

To play the short side of the business, if your Weekly Triangle is DOWN, you can use the DOWN Monthly Triangle as a potential entry point to a short sell position. You can then use the next UP Weekly Triangle as your potential exit point and could utilize the consequent Weekly Triangles as re-entries and exits as long as the Monthly Triangle stays DOWN.

For SHORT-TERM traders:

This is mainly for Futures and Forex traders. Weekly Triangles focus on the trend and main entry points. A new 3-day high or low forms the Daily Triangle and focusses on timed exits and re-entries.

The last Weekly Triangle formed is to be used to recognize the general trend. If the Daily Triangle is UP, you can utilize the UP Weekly Triangle as a potential entry point to a long position. You can then use the following DOWN Daily Triangle as your potential exit points and can utilize the next all Daily Triangles as re-entries and exits as long as the Weekly Triangle stays UP.

To play the short sell trade, if your Daily Triangle is DOWN, you can utilize the DOWN Weekly Triangle as a potential entry point to a short position. You would then utilize the next all UP Daily Triangles as your potential re-entries and exits as long as the Weekly Triangle stayed DOWN.

Always trade with the trend and use proper money management. Apart from the triangles, there is a scoring system introduced by Marketclub

What do the Marketclub Trade Triangle Chart Analysis Scores mean?

The positive scores in Marketclub Trade Triangle

+100 : Strong uptrend is in place and this market will likely remain in a long-term positive direction.

+90 : Positive in the 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 days 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 maybe reaching a crossroads. You may see choppy market conditions in the near-term. The trend for the intraday, short term, 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. The 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.

Trade Triangle

The fifty mark

+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.

The negative scores in Marketclub Trade Triangle

-55 : The trend of this market may be moving into a trading range. The trend for the intraday, short-term intermediate-term a long-term is 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. The 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.

Conclusion

The Marketclub Trade Triangle is a highly successful method of trend trading. Traders mainly use this for swing trading. Matketclub used this technique widely in the US stock market. But we have tested this for Indian stocks. We saw nice results even in the Indian stock market.

2 thoughts on “How To Use Marketclub Trade Triangle For Swing Trading?”

  1. I am highly amazed by your knowledge. Can you teach trading and technical analysis on basic and advanced level?. Please wud love to learn.

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