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TRIPPLEPIP’s
CONFIRMATION
STRATEGY
___

By AKIF MATIN

Introduction
This document outlines a comprehensive strategy for trading
Over-The-Counter (OTC) derivatives presented to you by Tripplepips.
The strategy employs four key technical indicators: Moving Average
(MA), Relative Strength Index (RSI), Parabolic SAR (PSAR), and
Alligator Indicator.
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Strategy Overview
The strategy aims to identify potential buy and sell signals in the OTC
derivatives market by analyzing price trends and market momentum.
The four indicators are used in conjunction to provide a more accurate
prediction of future price movements.

Moving Average (MA)

The Moving Average is a widely used trend-following indicator that
smooths out price data to identify the direction of the trend. We use 3
Exponential Close MAs: 4, 9 and 22 to get an idea on current market
trends.. The EMAs give more idea on the weight to recent data.
Indicator No. (1) >> EMA 4
Indicator No. (2) >> EMA 9
Indicator No. (3) >> EMA 22

Parabolic Stop and Reverse (PSAR)

The PSAR is a trend-following indicator providing potential entry and
exit points. The PSAR dots below the price indicate a bullish trend,
while dots above the price (also when price is below EMA 22) suggest a
bearish trend. We use PSAR with step 0.003 and Maximum 0.009
value.
Indicator No. (4) >> PSAR
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Relative Strength Index (RSI)

The RSI is a momentum oscillator that measures the speed and
change of price movements. It helps identify overbought and oversold
conditions in the market. We use 3 RSI, of them only 2 are considered
to be on our focus. We use RSI Closed values of 14, 43 and 89.
Indicator No. (5) >> RSI 14
Indicator No. (6) >> RSI 89

Alligator Indicator
The Alligator indicator is a trend-following indicator designed by Bill
Williams. It consists of three smoothed moving averages (the jaws,
teeth, and lips) shifted into the future. When the jaws, teeth, and lips
are intertwined, the Alligator is “sleeping” and the market is trending.
When the Alligator “wakes up”, the lines diverge and a new trend
begins. We use Exponential Weighted Closed Alligators where the lips,
teeth and jaws value is gradually 5, 24, 39.
Indicator No. (7) >> Lips 5
Indicator No. (8) >> jaws 39
Indicator No. (9) >> SMA 80 (prev indicator value)
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Strategy Implementation
The strategy is implemented by observing the indicators and making
trading decisions based on their signals. Below, we have shown how
the BUY and SELL Signal generates in this setup.

Ideal Timeframe for day trading and scalping is M1 and M5, or M5 and
M15. For weekly moves, please check on M30 and H1 Timeframe.
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Risk Management
Risk management is a crucial part of this strategy. It involves setting
stop-loss and take-profit levels to manage potential losses and protect
profits. The levels are set based on the volatility of the market and the
risk tolerance of the trader. Usually we suggest you take a risk of 0.25
to 1% on a trade depending on the margin you wish to take on the
trade. Moreover Risk:Reward ratio can vary from 1:1 to 1:3. Remember
to put the stop loss on the entry price whenever price reaches half of
the target price and make sure to half close your entry to secure a
winning streak.
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Timing
This strategy requires a systematic approach using market session
based liquidity movement.
Details : https://www.investopedia.com/terms/t/tradingsession.asp
Usually, any market session starts at 8 AM - 4 PM, whereas, stocks
start moving from 9:30 AM, with lunch hours from 12-1 PM.
Now for London, NY or Asian sessions, ideal trading hours are from
9:30 AM - 11:00 AM (AM session) & 1:30 PM - 3:00 PM (PM session)
in their respective session times.

So ideal timing to trade on USA based time is :

Asian session : 8:30 PM - 10:00 PM, 12:30 AM - 2:00 AM.

London session : 5:30 AM - 7:00 AM, 9:30 AM - 11 AM.

US session : 9:30 AM - 11 AM, 1:30 PM - 3 PM.

US time 9:30 AM - 11 AM provides high volatile liquidity moves as at

this time, UK PM session and US AM session is activated.

So, from a day trading perspective, these timings based on US time

EST are very important, because this strategy only works in these
mentioned timings.
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Let’s break down US session time based day trading setup :

9:30 a.m.: The stock market opens, and there is an initial push in one
direction. (It may take a couple minutes to get going.)

9:45 a.m.: The initial push often sees a significant reversal or

pullback. This is often just a short-term shift, and then the original
trending direction re-asserts itself.

10:00 a.m.: If the trend that began at 9:30 a.m. is still in play, it will
often be challenged around this time. This tends to be another time
where there is a significant reversal or pullback which tends to
continue up to 11 a.m.

11:15–11:30 a.m.: The market is heading into the lunch hour, and
London is getting ready to close.1 This is when volatility will typically
die out for a couple hours, but often the daily high or low will be
tested around this time. European traders usually close out positions
or accumulate a position before they finish for the day. Whether the
highs or lows are tested or not, the market tends to "drift" for the next
hour or more.

11:45 a.m.–1:30 p.m.: This is lunch time in New York, plus a bit of a
time buffer including UK session closing. Usually, this is the quietest
time of the day, and often, day traders like to avoid it.

1:30–2:00 p.m.: If the lunch hour was calm, then expect a breakout of
the range established during lunch hour. Often, the market will try to
move in the direction it was trading in before the lunch hour doldrums
set in.
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2:00–2:45 p.m.: The close is getting closer, and many traders are
trading with the trend, thinking it will continue into the close. That
may happen, but expect some sharp reversals around this time,
because on the flip side, many traders are quicker to take profits or
move their trailing stops closer to the current price.

3:00 and 3:30 p.m.: These are big "shakeout" points, in that they will
force many traders out of their positions. If a reversal of the prior
trend occurs around this time, then the price is likely to move very
strongly in the opposite direction. Even if the prior trend does sustain
itself through these periods, expect some quick and sizable
counter-trend moves.

As a day trader, it is best to be nimble and not get tied to one position
or one direction. The last hour of trading is the second most volatile
hour of the trading day. Many day traders only trade the first hour and
last hour of the trading day.

3:58–4 p.m.: The market closes at 4 p.m. After that, liquidity dries up
in nearly all stocks and ETFs, except for the very active ones. It's
common to close all positions a minute or more before the closing
bell.

So, if you can use the setup correctly in the mentioned timings, I hope
you can make yourself a fortune. But it needs a lot of practice, so
before trying on your own balance or prop firm, demo trading is highly
recommended to check on your own.
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Conclusion
This strategy provides a systematic approach to trading OTC
derivatives. However, it’s important to note that no strategy
guarantees profits. Traders should use this strategy as a guide and
adjust it based on their individual trading style and market conditions.

Join our telegram group to know more about our average trend
directional bias for a trading day. If that direction goes according to
what this #confirmation_strategy suggests, then only enter the trade,
otherwise not.

Let us know your thoughts and concerns about the confirmation

strategy. Share to more of your closest and dearest ones so that it can
assist them also to get an idea on tracking market readings and make
some profits out of it.

Thank you.

To get the strategy description video, click this link below 👇

https://youtu.be/BfGmIolxRoU
To get the Strategy .TPL file for MT5, click this link below 👇
https://t.me/tripplepips/1/1104

Trade with Tripplepips.

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