Topic: Trying new trade setup combo, thoughts? (Read 318 times)

Most definitely on the long, it's not quick trading.
You must be able to hold out for the right times in the market that is not to say you can make smaller short trades in the interim periods between tops and bottom,

Smarts are long for the tops and multiple shorts on the way down with possibly rebuys when there is sufficient stagnation in the market.

Time wise sometimes it's possible when there is high volatility to make this tactic work well for example,

Today's dash price.  there was a good chance of using this tactic today many times



Really it all depends on what market you trade in how you can set up this way of trading.  If its a volatile market use it aggressively
More passive long approach on more stale or slow to move markets.

So in general which timeframe are you trading on a triple top/bottom setup?
it would seem that setup is for mid-long holds? looking for larger spikes?

I like to use the triple top method or triple bottom methods.

Investopedia is a great resourse for learning in seems you have already dose some digging into it anyway.

This little guide helps me a lot



Triple Tops: Identification Guideline

Price trend   Upward leading to the pattern.
Shape   Three peaks near the same price with a downward breakout.
Middle peak   Sometimes the middle peak is priced marginally below the other two.
Volume   Trends downward 59% of the time, but is usually high beneath formation of each peak.
Bear market   More triple tops appear in a bear market than in a bull one.
Confirmation   The pattern becomes valid when price closes below the lowest valley in the pattern.

Triple Tops: Trading Tips

Trading Tactic   Explanation
Measure rule   Compute the height from the highest peak (point B in the Measure Rule figure to the right) to the lowest valley (A) and then multiply it by the above “percentage meeting price target.” Subtract the result from the lowest valley (A) to get a price target (C).
Price reversal   Price must have something to reverse, so if the rise leading to the pattern is small, expect a small decline.
Confirmation   Wait for price to close below the lowest valley (confirmation, point A in the Measure Rule figure to the upper right) before placing a trade.
Peaks   When the last peak (point B in the Peaks figure to the right) is below the middle one (A), then expect a stronger decline. A lower top suggests weakness as price attempts to make a new high but fails.
Price velocity   A high velocity rise leading to the pattern often results in a larger decline post breakout.
Yearly high   Patterns in the highest third of the yearly price range perform best.
Volume trend   An upward volume trend suggests better post breakout performance.
Quick decline   A quarter of the tops reach the ultimate low in the first week after a breakout. A third bottom in less than 2 weeks.

http://thepatternsite.com/tt.html

Also has a lot of good adivce on trends and how to spot factors.

Hello all
I have recently been reading a fair number of forex trading books and ebooks, and have decided to attempt to combine two trade setups explained in  these books and apply it to crypto. I was hoping if I post here, I could either get a more seasoned traders opinion, or... if it happens to be a goodidea then maybe help a few people gain some BTC .

Setup #1
9/20 MA

ForexFactory Link <- explains the setup in more detail
Very simply explained you use a 9MA and a 20MA and trade based on the crossovers.

Setup #2
5-min MoMo

Investopedia Link <- explains setup in more detail
Very simply explained you use a 20MA and a MACD with standard settings 12,26,9 and when a crossover happens on both the MACD and the MA you make the corresponding trade.

My Thoughts
Using the combo of the two setups above [both of which overlap nicely with a 20MA] I believe that momentum and fast trends can be quickly identified and exploited.

Any thoughts?