As we all know trading can be confusing and frustrating and its not always easy to find a method that is simple and effective.

Im sure most of you will have seen the triple screen system developed by Dr Alexander Elder and it is my belief that there has always been something missing from the system to make it complete.

Having studied the markets for some years now i found that there are 3 phases to the market that can be used to quite good effect to trade with a high probability of success.

If there is enough interest in this method i will be starting a live trading group for anyone who is interested to learn this method and yes there will be a charge for this but first lets go through some of the basic theory.

I will discuss these phases here in simple terms, lets think of the price movement in the markets as a ladder and our work is to climb up or down that ladder to get to the treasure.

To make a ladder we first need the sidebars once we have the sidebars we then need the steps placed between the sidebars to complete the ladder ,ok so we have a ladder so now we need something to lean the ladder against to be able to climb up or down, we can lean the ladder against a wall to climb up to the top and back down again or we can place the ladder in a hole and climb down and back up again.


It sounds simple because it really is that simple , now lets take a look at the three phases in terms of trading.


Phase 1 - The steps
Phase 2 - The sidebars
Phase 3 - Lean the ladder against something


In trading we can use any 3 timeframes with a factor of 4-6 between each timeframe so this means that if i start phase 1 on the 60 minute timeframe phase 2 must be at least 4 times greater which would mean we use the 240 minute for phase 2 (60x4=240) and the daily for phase 3 (240x6), of course we have some limitations due to the timeframes available in metatrader 4.




The 60 minute will represent the steps
The 240 will represent the sidebars
The daily will represent whatever we lean the ladder up against.




to be continued

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Have two questions;

1 .... Which time scale do you get your market information from (trends)?
2 .... which time scale do you derive your trades from (signals)?


Keit

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(If one expects unbutchered use of the english laugage or even corect spelling, then I advise you not to reed any of my rightings.)

Phase 1 is the steps the steps are the trend, so as i have outlined above it would be the lowest timeframe of the 3 you choose.

The entry also comes from the retracements in the trend , we move up the ladder with caution because we know that eventually there will be no more steps to climb as we will reach the top of the wall ,so each time we move up the ladder we take our foot off the ladder and step back slightly take a look up and decide if we should continue.





bubble

If you get both the market trend and your trade signal for the lowest chart 60M in your case. what are the other two charts used for?

__________________
(If one expects unbutchered use of the english laugage or even corect spelling, then I advise you not to reed any of my rightings.)

I will cover in more detail each phase/timeframe later but just to answer your question briefly ;

Phase one shows when the market is creating the steps of the ladder or the trend and gives us the entry points on the retracement of the trend.

Phase 2 shows the steps within the sidebars of the ladder and in trading terms simply shows that the lower timeframe is moving faster than the middle and this is important as any trend will begin from the lower timeframes as the price moves through to the higher timeframes.


Phase 3 tells us wether the ladder is propped against the wall in the right direction , in trading terms this tells us wether the trend is moving in the direction of the higher timeframe.


bubble

I see your just trying to make it sound more complicated then it is, or has to be.

__________________
(If one expects unbutchered use of the english laugage or even corect spelling, then I advise you not to reed any of my rightings.)

Really , whats so complicated about using an analogy to explain something?


bubble

LETS TAKE A CLOSER LOOK AT EACH OF THE PHASES

We need a method to be able to identify each phase with a fair degree of reliability , for example looking at phase one which is the steps of the ladder or the TREND how do we identify this , easy to say for an uptrend , new low ,high,higher low ,higher high, this is the definition of an up trend according to the text books the problem is none of the text books actually give a solid method of identifying the trend, think about it , if we view the market on our trading platform as bars and draw trend lines in what we think is the trend just by visual identification we could never be sure its correct so we need some kind of indicator to do the work for us that is consistent in what it is showing , thats exactly what i have ,now im not saying that it is the holy grail or anything like that but the indicators that i use have stood the test of time and do show the trend and each stage of the triple screen method i am discussing without any doubt im my mind and experience.



PHASE ONE EXAMPLE


Take a look at the chart called "trend" its a 60 minute chart of the AUDJPY , i have placed the trendlines where the indicators i use tell me that each swing begins and ends which makes the trend , so here we have an uptrend or our ladder and as you can see the last two swings up were our trades after the trend was formed.


Phase one gives us a lot of information , not only the trend but also the retracements which are pauses in the trend and these allow us to take entry into the trend should a new swing into the trend begin.

How do we know when the retracement has ended ? we dont need to worry about when the retracement has ended, its more important to be able to identify when the next swing up is beginning and take entry at this point which of course i will show in precise detail if there is sufficient interest in starting the trading group.

If the next swing up does not begin then there is no trade and this is extremely usefull as it avoids taking trades when the trend has ended, occasionally we do get a new swing signaled at the top of the trend which merely turns into a retest of the prior top or a failed retest and the market reverses either into a deeper correction or a reversal but the exit strategy will save any major losses and in most cases even the retest quite often yields some profit.



So far then we have used phase one or trend phase to show the steps of the ladder (trend) the retracement for the entry and the beginning of the new swing up giving us the entry point so it stands to reason that when the new swing up begins we can place a reasonable stop under the low of the point where the new swing began .


Quite a lot of information from one timeframe, trend,retracement,entry,stop and exit.




bubble

PHASE 2 - THE SIDEBARS


During phase 1 we are watching for a trend to develop and i discussed this using the analogy of the steps to a ladder.

Now we need the sidebars for the steps to be able to climb the ladder safely and we can view these using the next time frame higher which in our AUDJPY example from phase 1 would be the 240 minute as we started on the 60 minute.

Another way to think of it is that our ladder is of the extending type and each timeframe has a ladder so we need our steps from the 60 minute to be extending up over the the next higher timeframe.


In trading terms this just serves to confirm that the trend from phase 1 is moving faster and in the same direction as the next higher timeframe or phase 2.


Take a look at the chart below "the sidebars"

See how the ladder now has 2 sides with the steps in the middle or if you like the 60 minute is extending over the 240 minute the lines are there to replace the indicators , the indicators i use show us in a very nice way on the chart what is happening in each of the phases with no guesswork ,no gut instinct needed or feeling or any of that kind of nonsense.


Now its just a case of making sure that the ladder is proped up in the same direction as the daily in our case.


bubble


PS. TAKE A LOOK AT CABLE 60-240-DAILY ALREADY MOVED SOME 70 PIPS DOWN FOR A NICE TRIPLE SCREEN TRADE

EURGBP 60-240-DAILY , A VERY NICE SET UP

FREE TRIAL INVITATION TO LEARN THE TRIPLE SCREEN METHOD


Before i move on to the next phase of the triple screen i would like to take this opportunity to invite any of the admin from forex tsd to witness how the method works as im sure that your opinion will be valued and trusted by the members here

The trial consists of spending a day or two with me on a live screenshare basis.

i hope that you take this opportunity as it will be of great benefit to the other members here.


bubble