RTTcTrinityDuo

Script: RTTcTrinityDuo

Purpose : Plotted Script for Trinity trades combining scripts
RTTc Trinity58Long and
RTT ATR EnvelopesEx,
adding markers for FTFF and breaks of trend.

It draws six icons: Two Trinity icons -
when the MACD speed has risen above average
when the MACD speed has crossed above zero
two trend breakers -
where the Envelope's Stop condition is triggered
where an Entry condition is met
and two auxiliary ones -
where the Accumulation Pre-Alert is triggered,
where the price is rejected at a new resistance

All other Trinity requirements must also be met: see "Trinity Approach" below.
Each Trinity icon can come in two colours: a pink background warns that volume or momentum has dropped off recently; I have found this correlates quite often with a subsequent FTFF retracement.
The green background represents the "Classic" Trinity entry, with $Turnover on a similar level as at the latest A.

The Accumulation and Trinity , icons are drawn below the Signal candle at the bottom of the Price chart (window 1); the Trinity Signal candles are linked by a horizontal line at the most recent Signal level. This will assist in locating similar configurations; it is also a good visual aid to recognise general trends.
Trend breakers and are drawn flush below the current break level. This may obscure part of the subject candle, but the current version of the Market Analyser does not provide for semi-transparent market icons.
FTFF icons are shown at the top; they appear on the day after the new High has been established, which is also the starting point of the horizontal FTFF resistance line.
All break indicators are calculated on their candle's Closing Price. When reading a Daily chart during Trading, this can have the effect of marking an intraday change of trend, which may prove to be only transient. Judging the likely final shape of an incomplete candle is a matter of each Trader's skills - or luck...

Please Note: "The Trend is your friend." is no idle cliche, but must be observed regardless of the indicators used in a Trading Plan.

Since Accumulation Indicators and resistance levels are drawn as they occur, it is unnecessary to have separate A(34...) indicators in the template; the will pick up the period and volume parameters as specified for RTTcTrinityDuo. The number of successive resistance levels can also be specified (see below).

To save time, it is recommended to set the global chart parameters to "calculate visible points only". This means the script calculates and draws icons and lines only for the days visible in the current window. (see "Parameters" below)

If you zoom out and wish to expand the plot, right-click inside the window, select the script's Properties, and click "OK". That will redraw the plot for the larger time frame. Conversely, if, after zooming in, the top (FTFF) or bottom (A, Trinity) icons disappear, redrawing will also bring them back.

Please note that scripts work on any time scale. Substitute "tick" (week, hour, month...) for "day" where appropriate.

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References: Trinity Approach, expanded by scores of examples on the MDS Members Forum.
Trinity Trades September 2006, for which you need PowerPoint
MDS: Accumulation pre-alert
MDS: Technical Indicators Look specifically for MACD and Stochastic.

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Application: DNA: It is most important to find the parameters that can be shown to give best results for any particular stock. While the defaults have shown great results in general scans and trades, there is "always room for improvement". For example, one stock may tend to break out up to 30 days after the last A(34), whereas others may become unstable if it takes longer than a couple of weeks.
Trade Horizon: Measuring more than 50 trades coming out of one month's worth of alerted stocks, the average time in trade was close to 60 days. As we get closer to a general Market Top, these times will obviously become shorter. Logic would also tell us not to expect as many (if any) Long trades at times, when Markets fall or move sideways. If you prefer shorter or longer trades, you may wish to change the Accu period accordingly, or try MACD periods more commonly used in general literature.
Entry and Exit: Taken on its own, a Trinity signal indicates only an increased probability of a trend change. As a rule, a positive Open the following day can usually be bought; where an FTFF looks likely, I tend to hold back. Since studying ATR Envelopes, I have found that a single or 1.5 ATR above current price level (--> "DNA") can refine the entry process. Using the ATR Envelopes as an example, I try to get set as closely as possible to the last pink Low preceding the Signal day. This is shown by the marker.
There are certain obvious exceptions: If the current price bands are still falling, it may be advisable to wait. See RTT ATR EnvelopesEx for details.

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Parameters: Scan Range = age limit of the most recent Accumulation Indicator
MACD Speed = fast period of MACD
MACD Signal = Signal period of MACD
Accu Period,
Vol Multiple,
Price Drop% = parameters for Accumulation Indicator
min T/over $K = Ignore stocks with low daily turnover (in $'000)
# FTFF levels = draw resistance lines and mark drop days by
Envelope MA Period = period, over which the Pivot MA is calculated
Envelope ATR Period = period, over which ATR is calculated
Envelope Factor = multiple (ATRs) for the ATR Envelope

Colours for lines linking Trinity signals, FTFF resistance levels, and Envelope lines can be independently specified.

Global (File) Parameter Setting for Chart to draw plotted scripts faster:

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Example: Entry signals, Envelope factor = 1.5

Example, Envelope factor = 3: In a strong trend, widen the envelope to stay longer

Example, Envelope factor = 1: But after Bearish Divergence, better tighten up

Example: pink colour, FTFF likely

Example: Short Signals

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