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Trading Triads: Unlocking the Secrets of Market Structure and Trading in Any Market

Trading Triads: Unlocking the Secrets of Market Structure and Trading in Any Market

Felipe Tudela

ISBN: 978-0-470-97158-1

May 2010

304 pages



Trading Triads explains the ‘Triads’ method, a system that enables simple market analysis, flagging accurate turning points as well as precise entry and exit points for trades.

The book begins by introducing the reader to the Triads method and how it was developed, as well as explaining how it reflects the fundamental structure of the market. The author goes on to explain the oscillatory nature of markets, their structure and their key elements. The book explains why most indicators give false signals and explains how to avoid them.

After exploring fundamental market structure, the book explains the Triads strategy. It covers precise entry and exit points as well as stop placement. Also it explains how to use Triads at the same time as other indicators to trade the markets most successfully – for example, how a simple moving average traded with the help of Triads becomes a powerful trading tool that avoids most false signals.

It also shows how to trade an MACD, stochastic or any other indicator/method with the help of Triads. The purpose of these examples is to show how the Triads methodology improves significantly any trading method or trading tool.

The book aims to explain to the reader a new trading method which can simplify analysis of the market, and provide a simple and extremely versatile strategy which can sit alongside the trader’s current range of tools to increase precision, and results, in their trading of the markets.


Introduction: The Road To a New Level of Mastery.

The Ageless Science of Trading.

Why Most Traders Fail.

The Key to Success in the Market.

1 The Oscillatory Nature of Markets: Their Component Elements.

Market Science, the Science of Oscillations.

The Key Elements of Market Behavior.

The Fundamental Market Structure.

2 How to Measure Oscillations.

The Primordial Market Cycle.

Measuring the Market.

The Meaningful Swing.

3 Market Phases: Learning to Recognize Them is Your First Step Towards Success.

The Origin and Nature of Market Phases.

The Wheel of Time.

The Inner Structure of All Patterns.

4 Market Strength: The Conditions for a Change of Phase.

The Fundamental Market Structure: The Key to Market Strength.

The Energy Factor.

The Time Factor.

Market Times as Different from Clock Time.

5 Basic Principles and Strategies for Trading Success.

Using the Fundamental Market Structure to Trade the Markets.

A Trading Strategy That is Not Exclusive of Other Trading Methods. 

The Difference Between Patterns and Principles.

Basic Trading Strategy.

6 The Key Buying and Selling Patterns.

Waiting Patterns.

Buying Patterns.

Selling Patterns.

7 The Mastery of Fluctuations: How to Develop Your Sixth Sense of the Market.

The Arithmetic Measuring Method.

Measure Market Swings Before Trading.

Building Up Your Sixth Sense.

8 How to Trade with Indicators while Avoiding False Signals.

Why Mathematical Indicators Give So Many False Signals.

The Power of a Simple Moving Average.

Trading Triads with Indicators.

9 Trading Patterns with Triads.

Trading Tops and Bottoms.

Trading Triangles.

Trading Gaps.

10 The Only Way to Succeed: Control Your Risk.

Why You Must Never Overtrade.

Looking for the Right Risk/Reward Ratio.

11 Money Management Is Easier Than You Think.

Money Management Is the Secret.

The Logic of Money Management.

Complex Mathematics versus Intuitive Simplicity: The Tools of Money Management.

12 How to Find a Trading System or Method that Really Works.

What Works: Its Key Element.

The Secret About Secret Methods.

The Logic of Boundaries and Money Management.

13 How to Create a Trading Plan.

Find an Idea.

Develop and Test Your Ideas.

Put Everything into Writing: Create an Operating Manual.

14 Now Try This Simple Experiment.

Build Your Trading Laboratory.

Create Tour First Trading System.

Now Do It


Appendix I Triad Formulas in Metastock Language.

Formula 1: Descending Triad.

Formula 2: Ascending Triad. 

Appendix II Chart Examples and Charts.