Today I will talk about what the so-called golden triangle and death triangle are. There are many types of indicator signals and there are no useless signal indicators. I will explain in detail the usage of the moving average triangle in spot trading.
The moving average triangle strategy includes the following two parts:
1. Golden Triangle Buying Method
2. Death Triangle Selling Method
Let’s first take a look at the shape of the moving average triangle?
In the first form, the 5-day and 10-day moving averages must form a golden cross below the 30-day lifeline.
In the second form, the 5-day moving average crosses the 30-day moving average to form a golden cross
The third form, the 10-day moving average crosses the 30-day moving average to form a golden cross
The three golden crosses formed when the above conditions are met at the same time are called the moving average triangle pattern.
The moving average triangle strategy is composed of the 5-day, 10-day and 30-day moving averages. As the name suggests, the triangle is composed of three moving averages that cross each other to form a shape similar to a triangle, so it is called the moving average triangle.
So why is it called the Golden Triangle Buying Method?
The triangle pattern formed by three golden crosses is called the golden triangle, and the formation of each golden cross is an opportunity for us to buy, so it is called the golden triangle buying method.
When the first golden cross is formed: 5-day crosses 10-day, forming the first golden cross, we need to buy 40% of the position
When the second golden cross is formed: 5-day crosses 30-day, forming the second golden cross, we need to buy 30% of the position
When the third golden cross is formed: the 10-day crosses the 30-day, forming the second golden cross, we buy 30% of the position again
The buying method here is also the [4+3+3 buying method] that we often talk about and often mention and use.
Spot price is above 4H
The contract is valid for 5 minutes or 15 minutes.
Every golden cross is our buying opportunity
Next, let’s talk about the [Death Triangle Selling Method]
There is a golden triangle buying method, and there is also a death triangle selling method. When a death cross is formed, it is also our selling point.
The first form is that the 5-day line crosses below the 10-day line to form a death cross.
In the second form, the 5-day moving average crosses below the 30-day moving average to form a death cross
The third form, the 10-day moving average crosses the 30-day moving average to form a death cross
When the above conditions are met, three death crosses are formed, which we call the death triangle pattern.
The first pattern, the 5-day moving average crosses below the 10-day moving average to form a death cross, we sell 40% of the position
The second pattern, the 5-day moving average crosses below the 30-day moving average to form a death cross, we sell 30% of the position
The third pattern, the 10-day moving average crosses below the 30-day moving average to form a death cross, we sell 30% of the position
The key point of the moving average triangle strategy is that every golden cross is a buying point, and every dead cross is a selling point.
The position bought at the first golden cross corresponds to the position sold at the first dead cross, and each golden cross corresponds to a dead cross. (Content Square has limited disk operation materials. Pay attention to the homepage of Good Brother for Easter eggs)