TRIANGLE MASTERCLASS - a thread.
what's the simplest, most effective method of trading a market that trends as hard as cryptocurrencies?
trendlines.
one trendline on its own is strong, but when you put two together you quickly realize just how powerful this simple tool can be.
what's the simplest, most effective method of trading a market that trends as hard as cryptocurrencies?
trendlines.
one trendline on its own is strong, but when you put two together you quickly realize just how powerful this simple tool can be.
i've been using triangles for as long as i can remember.
it seems dumb, and almost counter-intuitive to approach such a complex game like trading with such a simple approach like shapes...but maybe when markets start acting stupid its okay to dumb down our approach.
it seems dumb, and almost counter-intuitive to approach such a complex game like trading with such a simple approach like shapes...but maybe when markets start acting stupid its okay to dumb down our approach.
look, not all triangles are the same.
anybody can draw some lines on a chart any way they'd like. sometimes, we let our bias affect our charts rather than the other way around.
i personally have done this more times than i can count.
anybody can draw some lines on a chart any way they'd like. sometimes, we let our bias affect our charts rather than the other way around.
i personally have done this more times than i can count.
you see...triangles (and analysis as a whole) is not necessarily intended to make trading easier as much as it is to make trading simple.
you want a fluid bias that can change easily, rather than one relying on 10 steps of conflicting confirmation before entering a new trade
you want a fluid bias that can change easily, rather than one relying on 10 steps of conflicting confirmation before entering a new trade
trendlines enable us to maintain a fluid bias.
i mean, how much simpler can it be than "above this line bullish, below this line bearish" ? 😂
one trendline on its own can be enough to make a good trade, but when you put two together it can turn a good trade into a great one.
i mean, how much simpler can it be than "above this line bullish, below this line bearish" ? 😂
one trendline on its own can be enough to make a good trade, but when you put two together it can turn a good trade into a great one.
now i want us to focus on two types of triangles along with two directions.
two types: halves and wholes
two directions: up and down
two types: halves and wholes
two directions: up and down
let's start with halves.
why are they called halves?
well...simply because they're halves of wholes.
why are they called halves?
well...simply because they're halves of wholes.
the thing about halves, is that one of their sides is always flat.
it then becomes very simple as the direction of the side thats not flat dictates if you're bullish or bearish.
trendline up = bullish ... trendline down = bearish
it's that simple.
it then becomes very simple as the direction of the side thats not flat dictates if you're bullish or bearish.
trendline up = bullish ... trendline down = bearish
it's that simple.
now lets go to wholes.
wholes are interesting because with halves, your trendline dictates that price will *CONTINUE* in that direction...
while with wholes your trendlines actually dictate that price will *REVERSE*
wholes are interesting because with halves, your trendline dictates that price will *CONTINUE* in that direction...
while with wholes your trendlines actually dictate that price will *REVERSE*
so now we have 4 very simple triangles.
halves & wholes, up & down
halves & wholes, up & down
4 simple triangles...but what if i told you there was a 5th that was even more powerful than the rest combined?
well...that wouldn't be true in every market environment.
but when you're participating in a market that trends as hard as crypto is right now...it certainly can be
well...that wouldn't be true in every market environment.
but when you're participating in a market that trends as hard as crypto is right now...it certainly can be
i'd like to preset the single most simple and powerful triangle in the current market environment
the god triangle.
the god triangle.
the reason the god triangle is so powerful is because of what it represents: momentum resetting
the way way that price cycles, momentum does as well.
coins rally, then they cool off, and then they either rally more or reverse.
the way way that price cycles, momentum does as well.
coins rally, then they cool off, and then they either rally more or reverse.
the god triangle is neither bullish nor bearish.
it represents a continuation in trend.
so if price was going *up* into the triangle, its bullish
if price was going *down* into the triangle, its bearish
it represents a continuation in trend.
so if price was going *up* into the triangle, its bullish
if price was going *down* into the triangle, its bearish
the god triangle indicates that not only is price going to continue, but that it's about to pick up momentum as well.
within the triangle, price is compressing.
remember price goes up, then stalls, then either keeps going up or reverses.
expansion -> compression -> expansion
within the triangle, price is compressing.
remember price goes up, then stalls, then either keeps going up or reverses.
expansion -> compression -> expansion
when you see this pattern playing out, and you want to take a trade...
you place your stoploss either below the trendline...or below the previous low that was set within the triangle
this is how you give yourself high hit-rate, high R/R plays.
you place your stoploss either below the trendline...or below the previous low that was set within the triangle
this is how you give yourself high hit-rate, high R/R plays.
when you draw a triangle, one of the lines is used for your bias while the other is used for your opportunity cost.
the god triangle gives you the best of both worlds.
the god triangle gives you the best of both worlds.
i spend all day looking for triangles along with other high hit-rate plays in my free public telegram channel.
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