Take profit Multi timeframe

This trading strategy utilizes the WaveTrend oscillator for entry signals in a trend-following manner, with additional conditional exits based on fixed percentage take profits or higher timeframe moving average cross-unders. It buys when the WaveTrend line crosses over the signal line and is below a certain threshold, suggesting a potential upside reversal, and then scales out of the position at predetermined profit levels or upon a close signal.

To trade this strategy manually on TradingView:

• Apply the WaveTrend oscillator custom indicator to the chart.
• Set 'Channel Length' to 10 and 'Average Length' to 21.
• Enter a long position when the WaveTrend line (the oscillator) crosses above the signal line (its 4-period SMA) and the oscillator is below -20.
• Calculate take profit levels as a percentage of the entry price and set them at 3%, 5%, 8%, and 10%.
• Place a stop loss at 5% below the entry price.
• Scale out of position partially at each take profit level by the respective percentages for each set in the strategy script.
• Close the entire position when WaveTrend line crosses under the signal line and the oscillator is above 0 or use the higher timeframe EMAs (100 and 200 periods on 4-hour and daily timeframes) to determine conditional exits if prices are lower than initial entry.

Improving the "Take Profit Multi Timeframe" strategy involves refining entry points, scaling out of positions, managing risks, and adding conditional layers for higher accuracy in manual trading. The following plan outlines the steps to enhance this strategy:

• Diversify Entry Indicators: Enhance the entry signal precision by combining WaveTrend with other momentum indicators like the RSI or MACD. Confirm entries only when multiple indicators agree, reducing false signals and improving the strategy's reliability.
• Utilize Price Action: Integrate classic price action techniques such as support and resistance, candlestick patterns, and trendlines. Confirm WaveTrend signals against these patterns to add an extra layer of validation before entering trades.
• Optimize Percentage Take Profits: Review historical price movements to adjust take profit percentage levels. Fine-tune these levels based on the asset's volatility, ensuring they're realistic and align with the average price swings.
• Implement ATR-Based Stop Loss: Replace the fixed percentage stop loss with one based on the Average True Range (ATR) to better account for volatility. This dynamic stop loss adapts to changing market conditions and protects against unnecessary exits due to normal price fluctuations.
• EMA Confluence: Increase the effectiveness of EMA-based exits by looking for confluence with key Fibonacci retracement levels. Exit the trade when prices react to EMA levels that overlap with significant Fib levels.
• Higher Timeframe Bias: Assess the overall trend on higher timeframes and only take trades in the direction of this trend. This aligns smaller timeframe trading decisions with bigger market moves.
• Scale Out Strategically: Instead of flat percentages, scale out based on market conditions such as reaching a significant support/resistance or after large momentum moves, which could indicate potential retracements.
• Regularly Update Resistance Levels: Proactively adjust higher timeframe resistance levels before each trading session, ensuring they are current and relevant for decision-making throughout the day.
• Journal and Review: Maintain a detailed trading journal, noting the efficacy of each component of the strategy. Regularly review and assess which elements are working and which require optimization or removal.

By incorporating these enhancements into manual trading, the "Take Profit Multi Timeframe" strategy can become a more robust system that better navigates various market conditions and improves overall trade performance.

This strategy is tailored for traders who specialize in multi-timeframe analysis and have an affinity for trend-following methodologies. It is particularly suitable for:

• Traders who can actively manage trades, taking advantage of scalping and day trading opportunities to capitalize on short-term price movements.
• Those who have experience with technical indicators, especially the WaveTrend oscillator, and are comfortable combining it with other tools for enhanced decision making.
• Traders who prefer customizable exit strategies, as this system provides choices between percentage-based profits and resistance levels calculated from higher timeframes.

It appeals to a trading style that is dynamic and responsive to market changes, where the ability to adapt take profits and stop-loss levels according to the prevailing market conditions is crucial.

• Operation: Uses the WaveTrend oscillator for trend-following entries, with exits planned by set percentages and/or higher timeframe resistance levels.
• Automated vs. Manual: Primarily an automated script but can be used manually, by setting alerts based on the strategy's conditions.
• Optimization for Manual Trading: Enhance by incorporating additional indicators for entry confirmation, price action analysis, and dynamic stop losses based on volatility (ATR).
• Risk Management: Ditch fixed stop losses in favor of ATR calculations and adjust take profit percentages based on historical volatility to better align with the asset's typical price movements.
• Targeted Users: Aimed at traders skilled in multi-timeframe analysis and those comfortable with actively managing trade exits and responding swiftly to market conditions.
• Trading Style: Suitable for scalping and day trading, with the flexibility to respond to short-term price changes within the confinements of higher timeframe trends.
• Improvement through Review: Keep a detailed trading journal for strategy components' effectiveness reviews, allowing for regular optimization.