The price movement in a security is affected by interplay of
trends across different timeframes. The trend quality and robustness of price
movement is determined by the following factors in Triple Trend Oscillator.
1.The position of trend oscillators(TO) across
different time frames inter se. What it
means is that the position of TO of the
lower degree as compare to the position of TO of the higher degree.
2.The direction of the TOs, whether bullish or bearish and,
3.The placement of TOs on the indicator, whether
above or below the zero line.
For example the TOs placed above the zero line and in bullish mode with the TO of
lower timeframe placed above intermediate and long term TO will result in
runaway prices. In such a scenario, an appropriate entry using the trigger line
could result in extraordinary profits in a short time, for a long trade.
The converse is true
if the TOs are placed below zero in the reverse alignment, for a short trade.
Hence the positioning of each TO plays an important role in
establishing the trend quality ranging from
highly bullish to mild bullish and highly bearish to mild bearish.
