System of three screen

The system was created by Alexander Elder in 1985 and since then actually there are no changes, that tells about its reliability and wide applicability, both in stock market, and in Forex.

Basis of strategy is studying of the movement of the price at once on several time intervals.

Decision-making has a several stages in which we observe different tools.

The first one is chosen the "average" screen. Its size corresponds to the average duration of your position. As a rule they choose a four-hour or hour chart. We will choose four-hour.

As four-hour chart for us is a medium-term, we'll choose a day chart as a long-term and fifteen-minute as a short-term.

Let's place all three charts on one desktop.

We will begin the analysis with the long-term, day chart. The first task which faces is determination of a long-term trend. For us it will be the direction of opening of the transaction. As the system is trend we trade only in the direction of the main trend. We can determine a trend by different methods. By means of one or several averages.

By means of the MACD chart, it can be found in the section Oscillators indicators

by means of the Alligator indicator which is located in the section

or any other method. At present time we see the ascending tendency. MACD is in positive area and raises. The same tendency is shown also by Moving Average.

We pass to the following, four-hour screen. Here we reveal the movement against the main trend. For this purpose we use any oscillator. For example, Stochastic, it is possible to install it from the section Oscillators indicators. We see that at a given time, the oscillator tells about an oversold of +- main trend.

It is the moment of entrance into transaction. Let's specify time when it was on the chart. As you see, Stochastic shows an oversold, at the movement of the main trend up.

"The third screen" is the choice of the exact moment of an entrance to the transaction. As a rule it is just a screen, without indicators where the postponed buy order is at the time of break of the line of support or resistance. Let's note this moment on ours fifteen minute chart.

Here, according to the system of three screens we had to buy a currency pair. The system of three screens is really powerful and worked up by years instrument of earnings in the foreign exchange market. But at the same time you have to understand that it is only a framework which trader has to add and adjust to himself. Remember without persistent work it is impossible to achieve success at the financial market.

We wish you high profit.

It is possible to discuss this strategy at forum