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
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
Notes de version:
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
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
Notes de version:
> 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
> 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
Notes de version:
max_bars_back error fixed