Golden Triangle Strategy (1H, Setup 1 & 2)

🔺 Golden Triangle Strategy – Setup 1 & 2 with Dynamic Trailing Stop (Optimized for 1H Chart)

### 📘 Strategy Summary

This strategy blends **technical pattern recognition** with **volume confirmation** and **dynamic risk management** to capture high-probability breakouts. It features two independent entry setups . More details can be found at thepatternsite.com/GoldenTriangle.html

I have added intelligent trailing stop that **tightens once a profit threshold is reached**. Please note that this is not mentioned in GoldenTriangle strategy. I just added to capture the profits.

### ✅ Entry Setups

#### **Setup 1 – Golden Triangle Breakout**

* Detects **triangle formations** using recent pivot highs and lows.
* A **bullish breakout** is confirmed when:

* Price **closes above the triangle top**, and
* Price is also **above the 50-period SMA**.
* Entry: At breakout candle close.
* Ideal for early momentum trades after consolidation.

#### **Setup 2 – Price + Volume Confirmation**

* Based on **mean reversion followed by volume surge**:

* Price drops **below the 50 SMA**, then closes **back above it**.
* Requires at least one **"up day"** (current close > previous close).
* Volume must be:

* Above its 50-SMA, **and**
* Higher than each of the **previous 4 days**.
* Entry: At the close of volume-confirmation day.
* Useful when triangle patterns are not clear, but accumulation is strong.

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### 📈 Entry Logic Recap

| Condition | Setup 1 | Setup 2 |
| ------------------ | --------------------- | --------------------------------------- |
| Pattern | Triangle Breakout | SMA Reclaim + Volume Surge |
| SMA Filter | Close > 50 SMA | Price drops < 50 SMA, then closes above |
| Volume Requirement | Not Required | > Volume SMA + > last 4 bars |
| Entry Trigger | Breakout candle close | After volume confirmation |

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### 🚪 Exit Strategy

#### 🔁 **Trailing Stop Loss (TSL)**

* **Initial stop:** 10% below the **highest price reached** after entry.
* **Tightening rule:**

* When profit reaches **10%**, the trailing stop is **tightened to 5%**.
* This keeps you in the trade while locking in more profit as the trade moves in your favor.

#### 🔻 **Manual Close**

* If the price drops below the trailing stop, the position is automatically closed using `strategy.close()`.

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### 🌈 Visual Aids & Additions

* Green background shading while in a trade.
* Real-time dashboard showing:

* SMA values
* Entry signals
* Plots for:

* Dynamic trailing stop
* Weekly Fibonacci R3 and S3 levels as outer support/resistance zones.

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### 🧠 Ideal Use Cases

* Works well on **1-hour charts** for intraday to short swing trades.
* Especially effective in **sideways-to-bullish markets**.
* Helps avoid false breakouts by using SMA and volume filters.

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Tip: I also showed weekly R3 on the chart. When the price touches at this level lock your profits. You Dont have to wait until price hits trailing stop loss.

warning : This strategy is published educational purposes only.