Investors try many strategies to make money in forex. This industry is sophisticated and required to use of advanced methods to find out the price direction. Many people have lost their capital while trying to make a fortune but experts have come up with ingenious solutions. Most basic formulas only try to analyze the fundamental concept where you will only get the forecast.
The result can be wrong if there is an error in the analysis. This can be reduced by implementing a method known as the Triple Screen Trading System. This implies an individual will be using three screens to find out the results. We are going to describe this concept for the traders. After going through this post, we expect many people will understand this market from a new perspective.
What is this method?
This was developed not by a financial expert but by a psychiatrist and a professor known as Dr. Alexander Elder. This investment strategy was popular and even got published in Feature Magazine. This shows the community accepted this formula as this provided a profitable result. The basis of this system was the theory that an individual indicator cannot work efficiently. If we increase the indicators, traders will get accurate results. Don’t instantly start using this method because you need to know the concept. A plan might sound appealing but to use it successfully, you need to comprehend the idea.
If you are determined to use the triple screen trading method for trading futures, check the quality of your broker’s platform. Select brokers like Saxo or else you might be in big trouble since most of the low-end trading platforms will not support this amazing technique.
How does this system work?
This is a technical analysis of a diverse timeframe that focuses on one aspect every time. This ensures investors are getting the results and the forecast is right. When the results are holistically analyzed, traders know where the price is going. An advantage of this method is even long-term investors can use this method. Short-term traders can also use this plan which has to make it popular. The person only needs to decide which timeframe and indicators are going to be used on the terminal. The bigger timeframes are the first screens and gradually the timeframe reduces.
An example of a long-term investor using this system would be using the weekly chart as the first screen. The interval screen will be a daily chart and the third screen can be an hour chart. In this way, traders will know and find out focuses on diverse timeframes. When using an indicator, the results might be wrong.
What are on these three screens?
The first screen is the one with the biggest timeframe. In this chart, people will be using a momentum indicator. The first chart tries to confirm the dominant trend and the direction of the price.
The second screen is sophisticated because an oscillator is used. To find out the changing points and entry sectors, we need to use this tool. This screen indicates the position where the community needs to open an order whenever a pullback or retracement happens.
If you complete the two screens, the third screen is the simplest as it works for identifying the entry points. This screen has developed over time and many prefer to use indicators. Many people only use visual observation which is accepted by the community.
In a nutshell, the bigger timeframes indicate the direction and the shorter timeframes about the entry points. More indicators are used to reduce the chance of losing but if you want to try this plan, practice in demo accounts. Trying to cope with three screens can be challenging. Skeptical traders can use this formula as it had been worked by experts. This method is popular and is successful by trading professionals. As this is a strategy, practice in the demo before trying in a live account.
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