The Trade Triangle signals are produced by a triggering of our proprietary algorithm. The RED and GREEN triangles signify changes in trend on a monthly, weekly and daily level. The triangles are produced for all 230,000 symbols we track. Once the triangles are produced, they are never removed and are able to be backtested according to your own unique trading style.
MarketClub suggests a filtering approach when following the Trade Triangle signals. The filtering approach differs between security types and trading style.
The Trade Triangle algorithm is comprised of weighted factors that include, but are not limited to price change, percentage change, moving averages, and new highs/lows.
GREEN triangles suggest positive trends.
RED triangles suggest negative trends.
The Trade Triangle algorithm is not intended to catch tops and bottoms, but instead identifies the majority of a swing trend. By allowing the trend to mature before a triangle is issued, we can trust that the trend is firm and consistent.
Note: The triangles will always be produced regardless of trend strength. The triangles should be used when you have a significant trend strength. You can use the Trend Analysis Score or other technical analysis studies to ensure the trend strength is appropriate for trading. For example, if a market is in a sideways motion, the triangles will still be produced even though you may want to be on the sidelines for that particular market.
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When the trade triangle is red, does it mean that I should not trade for that market?
What is your advice to me as a beginner in trading?