triple screen trading?

Discussion in 'Risk Management' started by melee, Sep 12, 2007.

  1. melee


    i just read alexander elders book and he highly recommends this method of trading. any one here use/used it? is it good, bad, or ugly? does it work better with other indicators or steps not mentioned by the elder?

    thank you
  2. lindq


    It has been instrumental in my trading, more as a concept than a method. The first trading book I read years ago that actually made some sense, because Elder frames his discussion in the overall scheme of things, without simply detailing technical indicators.

    As with others who have read the book, it changed by thinking about my entire approach to the market. It got my head out of the trees, into looking at the overall forest, into more of "why" things happen as they do.

    Triple screen timeframes can be weeks, months, days, hours, minutes or ticks, depending on how short your trading timeframe is. For example, if you are trading intraday, you may want to be referencing daily and 10 minute charts for setups, and a 1 minute chart, or less, for specific entry on price action.

    A longer term trader might want to use monthly or weekly charts for a trend, and daily charts for entry.

    Good Luck.
  3. mtwokay


    Triple screen trading works for me but like any system/market perspective it must be mastered. I don't use Elders indicators but I do have short, medium, and long term charts for the markets I trade.

    I have my own way of defining time frames for each chart but others on ET have gone into some detail on how they do it. I believe ProfLogic provides a few examples.
  4. As lindq stated it has some really good elements.

    I started with it (years ago!) and have used a version of it for some of my trading up until about six months ago, when I decided that looking at two trends would be easier than looking at three, and being sure to only take trades on the secondary trend when the primary trend's price action was congruent with its trend ...

    The originator of the ES Thread, B1S2, talks about this at length, and uses the concept for any and everything he trades. Believe me, it works for all instruments, across all time frames.

    Sincerely hope that helps.

    Good trading,

    Jimmy Jam
  5. I don't think the Prof uses the multiple frames of reference the way we're describing them here.

    Good trading,

  6. Benign


    For people who daytrade, I don't think they need to know timeframe longer than 1 day. Two intraday timeframes are good enough. One short is for making order decision. One long is for trend determination.

    Why do we need more than two? More makes decision complicated and slow you down.
  7. ml77


    I agree with benign. Or I would use the third one to display another index instead of another time frame.
  8. screen 1 - data vendor A - monthly/weekly/daily/60 minute/240 tic
    screen 2 - data vendor B - 60 minute/ 240 tic/indicators(fine resolution)
    screen 3 - order placement
    screen 4 - scrolling real time news

    screen 5 - cnbc
    screen 6 - bloomberg
    screen 7 - cnbc asia/europe

    screen 8 - order placement redundancy
    screen 9 - equity charts flash rate (100's of charts flashed every 15 seconds
    screen 10 - dvd/visualization/music/atomic sync clocks/economic calendars

    5 mobile broadband cards
    2 hardline internet access

    mobile phone web trader

    premium air filtration/conditioning system
    comfortable seat
    natural daylight/bio metal halides if natural light not possible


    Its best to know what the market is doing, since the market references itself along multiple timeframes, and will stall at price points that aren't evident in one timeframe but evident in others.
  9. You're one smart guy. :)

    Good trading,

  10. Spectre2007, you know: "Elder's Triple Screen" refers to confirming entries/exits in three different time frames, not actually using three monitors :) Perhaps you knew that, but just checking...
    #10     Sep 16, 2007