The trading strategy can be applied to all markets and 1H+ time frames because the financial markets move as a result of human behavior which makes them cyclical in nature. In other words, history is a good predictor of future price action.
One of the main reasons why angles are superior to the horizontal levels is that financial markets are geometric in their movements. This means that if you can spot a pattern or or any other geometric shape in a chart, then there is a high probability you can spot them at the angles.
Indicator is notable unique because it draws diagonal levels at different angles.
The most important angle is the 45-degree angle or the 1/1 line. For every angle, there is a line that is derived from that angle. We can distinguish 4 different angles above the 45-degree angle and 4 other angles below.
believed that when price and time move in sync, then that’s the ideal balance of the market. The biggest part of the theory revolves around the fact that prices above the 1/1 line, the 45-degree line will determine a bull market and prices below the 1/1 line determine a bear market.
How to Draw Angle - You first need to draw a perfect 45-degree angle and most sophisticated trading platforms should have incorporated such tools. On the Tradingview platform, you can locate the Trend Angle tool on the left-hand side panel.
Next step is to select any major swing high/swing low on the chart from where you want to draw the angles. Once you’ve chosen your swing low point simply utilize the trend Angle tool and draw a perfect 45 degree angle.
Once you’re done, you need now to learn how to draw the angles. On this step you need to use the indicator which again is located on the left hand side panel.
Now, all you have to do is to simply place the indicator on the chart and make sure it overlays on top of the 45-degree line you previously have drawn. This is the correct way to draw the angles and if you have been following all these steps all the other angles should comply with the rules.
Step #1: Pick a significant High, Draw Angles (White lines) and Wait For the 1/1 Line to Break to the Upside.
Step #2: Wait for a Break Above 2/1 angle (Green line) before buying at the market. This step is significantly important because a reversal of the previous trend is only confirmed once the 2/1 angle is broken to the upside.
Step #3: Apply again the Indicator (Yellow lines) on the Swing low prior to the breakout above 2/1 Angle (Green line).
One of the reasons why this is the best strategy is because we use the indicator to track every swing in the market.
Step #4: Place Your Protective Stop Loss below the Most Recent Swing Low Which Should Align With the Point from Where You Draw the Second Set of Angles.
Step #5: Take Profit once we Break and Close Below the 1/1 line (I close at 8/1 line).
New move setup - We Need a Close Below 1/1 line to be by at least 20 pips to consider it a Valid Breakout. We want to ride the new trend for as long as possible and with the help of the 2nd indicator, we can pinpoint the ideal time to enter and to take profits.
We also want to add a buffer of 20 pips to the 1/1 angle breakout just to annihilate possible false breakouts.