About a year ago I introduced the trading system known as Market Club Trade Triangles as a way to always be on the right side of the market, i.e. the dominant trend. It remains an easy and inexpensive way to track investments and market direction.
Here is a snapshot of the current S&P Market Club chart:
Note a DAILY SELL TRIANGLE given two days ago and a WEEKLY BUY TRIANGLE given July 15, 2009 at 931.32.
Zooming in on the Weekly signal on a Weekly chart, we see that the lowest price on the most recent three bars is on the third bar from the right, at 978.51.
The SPX closed Tuesday at 998.04. Should current prices take out the lowest price of the past three bars, anything below 978.50, a new WEEKLY SELL SIGNAL will be generated.
Are you ready to move on to Chapter II?
Well, there is no Chapter II, nor Lesson II, nor anything else that needs to be taught. This is the brilliant simplicity of Market Club's Trade Triangles, even a caveman can do it.
Ah, but what about the nuances, Allan?
Yes, there are those pesky nuances. For example, you only want to trade when both DAILY and WEEKLY Triangles are in agreement. You can throw in MONTHLY TRIANGLES if you really want to play it safe, at the cost of some nice profitable trades that might carry some additional risk.
I have over a year's worth of Blogs on Market Club's Trade Triangles, all of which will come up if you plug that into the Search box above. This is an elegant, inexpensive and easy system to learn, master and trade.
I've taken these posts into some more esoteric methodologies in the past year. Esoteric meaning more complicated, difficult and expensive. But they make for nice, intricate, colorful charts and ego satisfying discussion and analysis. These other methods also lend themselves more readily to my style of quick-strike-and-out trading.
Outside of my fast lane, Market Club endeavors and succeeds in getting direction right, the single most difficult, yet easiest, task at hand.
(Chew on that one awhile.)