How to Capture more Profit through Trend Line Angles
Theory:
When I'm trading trending markets above the 4hr and daily timeframes, I often use trend angles to understand the rate of change as the market gets faster and steeper.
Today I'm going to use Gold as an example.
I have been trading this asset for a while as it has been trending well on a casual upward slope of approx 14 degrees.
Around July 20, the angle changed to 30 degrees... This is twice as steep, indicating stronger momentum.
Around the July 23, again the angle increased and this time to 52 degrees - almost double again.
On July 27 (today at time of publishing) the angle changed again to 76 degrees.
Using the trend angle tool, I can see the rate of change and how steep the trade has become.
Trading Tactics:
Each time the angle changes, I draw a new trend line and add an alert to the most recent inner trend line. This is now my priority.
As the trade develops, I can review the progress.
If the most recent inner trend is broken, that's the first red flag for me.
I can choose to sell a few contracts/shares/units and begin to scale out.
At the break of the most recent support directly below the inner trend line, I will scale out even further.
If a second trend line or a major channel is broken in addition to the inner trend and support, I will scale out completely.
Summary:
This tactic has allowed me to capture maximum profit without having to set up a trailing stop loss. Although a trailing stop can work exceptionally well in some circumstances, this is an alternative option.
Hope this helps!
Have you used similar tactics or a similar strategy?
NOTE - This is purely educational content and none of it should be taken as financial advice. I am sharing a tactic that works for me personally, with no guarantee of results being replicated.
When I'm trading trending markets above the 4hr and daily timeframes, I often use trend angles to understand the rate of change as the market gets faster and steeper.
Today I'm going to use Gold as an example.
I have been trading this asset for a while as it has been trending well on a casual upward slope of approx 14 degrees.
Around July 20, the angle changed to 30 degrees... This is twice as steep, indicating stronger momentum.
Around the July 23, again the angle increased and this time to 52 degrees - almost double again.
On July 27 (today at time of publishing) the angle changed again to 76 degrees.
Using the trend angle tool, I can see the rate of change and how steep the trade has become.
Trading Tactics:
Each time the angle changes, I draw a new trend line and add an alert to the most recent inner trend line. This is now my priority.
As the trade develops, I can review the progress.
If the most recent inner trend is broken, that's the first red flag for me.
I can choose to sell a few contracts/shares/units and begin to scale out.
At the break of the most recent support directly below the inner trend line, I will scale out even further.
If a second trend line or a major channel is broken in addition to the inner trend and support, I will scale out completely.
Summary:
This tactic has allowed me to capture maximum profit without having to set up a trailing stop loss. Although a trailing stop can work exceptionally well in some circumstances, this is an alternative option.
Hope this helps!
Have you used similar tactics or a similar strategy?
NOTE - This is purely educational content and none of it should be taken as financial advice. I am sharing a tactic that works for me personally, with no guarantee of results being replicated.