How to Trade with TrendDECODER – And Why It Makes Sense – Trading Strategy – April 18, 2024
✔️ Identify scope and next expected direction
✔️ Get the fastest signals and trend strengths
✔️ Get a clear exit signal before reversal
✔️ Find the Fibo level the price will test
😀 What is it about?
TrendDECODER is a culmination of various innovations We make trend following simple and easy.
Please check it out 🛠️ Calculation and Precision See the section at the end of this page to learn more about how it works.
👉 gray box – Identify when the market breaks out of a trend into a new transition sequence. Determine if the market is in a range, continuation or reversal (up or down) and wait for the box to close to receive a trend signal.
👉 Signal and blue/orange clouds – Once GreyBox delivers the message, it identifies new directions in the trend and identifies potential areas of decline from the current direction.
👉 projected trend line – Check the direction and possible angles of the trend before it happens, along with the possible ranges.
👉 Comparison of real-time and projected trend lines – Adjust immediately if the market accelerates north or south.
👉 Real-time trend line intersection – Get off the train by detecting the moment the trend goes off track as soon as possible.
👉 Fibo level – Instantly find out what price level the market will test.
😀 What asset is it about?
TrendDECODER is universal: Works well across all assets and all time zones.
☝️ Work in an environment with multiple time zones to minimize risk at all times.
😀Why did we make this innovation?
This is because trend indicators as we know them have significant lags and do not clearly identify ranges!
This requires a much more powerful tool than Supertrend or a few moving average crossovers.
😀 How to trade with TrendDECODER?
🔹 Strategy #1: Trend Following: Decoder Signal and Blue/Orange Clouds
that much gray box We have provided the following expected movements and trend signals.
that much Real-time trend line It guides the speed of this movement and blue/orange/clouds indicate support/resistance of this movement.
It would be wise not to immediately jump into the trend when the signal appears, as it is likely that the price will retreat towards the cloud first.
🔹 Strategy #1: Checklist
📍 Multiple time frame preferences
📍 The primary and parent time zones move in the same direction. (up or down)
📍 Main Time Zones: Emergence of “TrendUp Signals” or “TrendDown Signals”
📍 entry:
☝️ It is very risky to buy «in the market» immediately from «trend signals». Many times the price will fall. near the clouds
👉 A good option is to buy 1/2 of the market position according to the signal
👉 And 1/2 after the first pullback
📍 First stop loss: Place SL below the lower border of the GreyBox for expected TrendUp and below the higher border for expected TrendDown.
📍 Break-even point: When price reaches risk/reward ratio of 1 = Distance Stop Loss vs. Entry = Distance Current Price vs. Entry
📍 Trailing stop: Just below the lowest boundary of a blue cloud (TrendUp) or just below the highest boundary of an orange cloud (TrendDown)
📍 Take Profit: Place your take profits just below the Fibos level to avoid a breakout in TrendUP (or higher in TrendDOWN).
📍 end:
👉 Initial options: Real-time trend line intersection
👉 Late option: intersection of blue/orange clouds
🔹 Strategy #2: Early Trend Following: Live Trendline Crossing
This simple tool allows you to get a very early signal of a possible reversal of the current trend, long before you see a confirmed decoder signal from GreyBOX.
🔹 Strategy #2: Checklist
📍 Multiple time frame preferences
📍 The primary and parent time zones move in the same direction. (up or down)
📍 entry (Default Time Frame): Wait for a close to cross the ReaTime TrendLine in the expected TrendUp (for TrendDown).
📍 first stop loss (default time zone):
👉 Your place SL is below the lower GreyBOX low. (for expected TrendUp) or higher high (for expected TrendDown)
📍 Break-even point: When price reaches risk/reward ratio of 1, move SL to entry price = distance stop loss vs entry = distance current price vs entry
📍 Trailing stop: Just below the lowest boundary of a blue cloud (TrendUp) or just below the highest boundary of an orange cloud (TrendDown)
📍 Take Profit: Place your take profits just below the Fibos level to avoid a breakout in TrendUP (or higher in TrendDOWN).
📍 end:
👉 Initial options: Real-time trend line intersection
👉 Late option: intersection of blue/orange clouds
🎛️ composition
Well, basically you don’t have to do anything!
However, you can make TrendDECODER completely your own by using a few switches in the configuration panel to show or hide each element that makes up TrendDECODER.
🛠️ Calculation and Precision
🔹 blue/orange clouds
The Blue/Orange Cloud is a proprietary integration of price action and volume exchanges in real time.
🔹 projected trend line
As soon as a new high or low is reached during the last move, TrendDECODER tracks the possible angles of future moves based on the speed of the last move in the same direction.
The distance between the projected trend line and the last low point (respectively the highest point) gives the possible lowest point (each high point) of the price range.
🔹 Real-time trend line
Decoder GreyBox carries information like Range/Continuation/ReversalUp/ReversalDown and as soon as it reaches New High (respectively New Low), RealTime TrendLine starts showing the speed and angle of new movement based on: Linear regression advanced concepts.
The angles of the Projective and RealTime TrendLine may be the same, which tells us that the market is moving smoothly in line with the global consensus. It can be a smart Trailing Stop Loss.
Alternatively, these angles can be very different and this will attract maximum attention. To get a bigger picture, you might want to switch to a better time period.
🔹 Fibo level
Fibonacci levels are automatically placed when a new trend is signaled.
Calculated based on the last high and low points of the previous movement.
