Hi,
The key principle of Triple Screen is to begin your analysis by stepping back from the markets and looking at the big picture for strategic decisions. Use a long-term chart to decide whether you are bullish or bearish, and then return closer to the market to make tactical choices about entries and exits.
The Triple Screen is a system of identifying and trading a trend. The fundamental is to first understand what a market is doing long term (First Screen) i.e. is there a trend. If there is a trend, you eliminate the option of trading against the trend and are left with only the choices of trading with the trend or standing aside. If there is a potential of a trade, go to an intermediate time frame (Second Screen) to understand how price is moving within that trend and look for opportunities to trade. Look to buy the dips in an uptrend or sell the rallies in a downtrend. If an opportunity is found, go to an even shorter time frame (Third Screen) and fine-tune an entry based on your favorite entry method. Upon completion of a Triple Screen scan, you will not be given a firm buy or sell signal, but with the proper analysis, will know whether to go long, short or stand aside.
It is important to note in this discussion that long term, intermediate term and short term are
all relative. Long term does not automatically mean daily or weekly or monthly, although it might. The way it works is that we as traders, select our favorite time frame; the time frame that we are most comfortable trading. We call this timeframe intermediate and we select a long term and short term by moving to a higher or lower timeframe.
We begin the Triple Screen by identifying the type of trader we are. Do we prefer long term position trading? Swing trading? Day trading or scalping? Based on our style, we select our favorite time frame to trade. For instance as a position trader, we might chose to trade the daily chart; as a swing trader, the 4 hour or the 1 hour chart; as a day trader, we might like the 15 minute chart. Once that decision is made, that preferred chart is identified as our intermediate time frame and becomes our Second Screen. As suggested by Dr. Elder Alexander, we then separate the timeframes by as close to a factor of five as our trading platforms allow, and choose a higher and a lower time frame. For example, if we are position traders using the daily chart, that would be 1 day X 5 = 5 days. This would define the weekly chart and this becomes our First Screen. Similarly, we select the Third Screen by dividing the intermediate time frame by five: 1 day / 5 = 4.8 hours, or the 4 hour chart. Some trading platforms have the ability to refine these choices of time and will allow more precise timeframes, if you choose to do that.
Happy pipping, guys!!!!
Sai Ram
The key principle of Triple Screen is to begin your analysis by stepping back from the markets and looking at the big picture for strategic decisions. Use a long-term chart to decide whether you are bullish or bearish, and then return closer to the market to make tactical choices about entries and exits.
The Triple Screen is a system of identifying and trading a trend. The fundamental is to first understand what a market is doing long term (First Screen) i.e. is there a trend. If there is a trend, you eliminate the option of trading against the trend and are left with only the choices of trading with the trend or standing aside. If there is a potential of a trade, go to an intermediate time frame (Second Screen) to understand how price is moving within that trend and look for opportunities to trade. Look to buy the dips in an uptrend or sell the rallies in a downtrend. If an opportunity is found, go to an even shorter time frame (Third Screen) and fine-tune an entry based on your favorite entry method. Upon completion of a Triple Screen scan, you will not be given a firm buy or sell signal, but with the proper analysis, will know whether to go long, short or stand aside.
It is important to note in this discussion that long term, intermediate term and short term are
all relative. Long term does not automatically mean daily or weekly or monthly, although it might. The way it works is that we as traders, select our favorite time frame; the time frame that we are most comfortable trading. We call this timeframe intermediate and we select a long term and short term by moving to a higher or lower timeframe.
We begin the Triple Screen by identifying the type of trader we are. Do we prefer long term position trading? Swing trading? Day trading or scalping? Based on our style, we select our favorite time frame to trade. For instance as a position trader, we might chose to trade the daily chart; as a swing trader, the 4 hour or the 1 hour chart; as a day trader, we might like the 15 minute chart. Once that decision is made, that preferred chart is identified as our intermediate time frame and becomes our Second Screen. As suggested by Dr. Elder Alexander, we then separate the timeframes by as close to a factor of five as our trading platforms allow, and choose a higher and a lower time frame. For example, if we are position traders using the daily chart, that would be 1 day X 5 = 5 days. This would define the weekly chart and this becomes our First Screen. Similarly, we select the Third Screen by dividing the intermediate time frame by five: 1 day / 5 = 4.8 hours, or the 4 hour chart. Some trading platforms have the ability to refine these choices of time and will allow more precise timeframes, if you choose to do that.
Happy pipping, guys!!!!
Sai Ram
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