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Triple Screen Trading System

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									Triple Screen Trading System
The principle of triple filter (from Alexander. Elder, "to trade
for a living," the author)
Triple Screen trading cycle indicators and solve the existing
contradictions and conflicting.
First of all, the long-term trend indicators used to make the chart a
strategic decision. - This is the first re-filter. Then in the middle of
the chart to determine the use of oscillation index entry points and
played point. - This is the second layer of filter. Triple filter theory
provides several ways to set long and short trading alone. - This is the
third re-filter, we can use the middle of the chart or charts to arrange
short-term trading alone.
First select your favorite trading period, out of mind this cycle is
defined as the middle period. Then multiplied by five times the length of
the cycle, by a long period. Adopted in this long-period trend indicators
make strategic decisions, determine to do more, short or wait and see.
Wait and see approach is reasonable. If the long-term bullish or bearish
on the chart, then return to the medium-term chart, with the oscillation
index to find long-term trends follow the direction of the entry points
and played point. Before switching to short-term charts, set up stop-loss
and profit target position, if possible, fine-tune entry points and
played good points.
The first re-filter
Select your favorite trading cycle, and it is defined as the middle
period. Then multiplied by five times its length, draw a long period. If
you choose the middle period as the date line, then immediately move to
weekly attention, that your long-term chart for analysis. In this
decision-making process, does not allow look on map, because it will
affect your week chart analysis.
If the day traders among the 10 minutes chart as a cycle, they should
immediately move to focus on the hourly chart. Hours and 10 minutes chart
chart five times, that 50 minutes a slightly different plan, but affect
the situation, after all, trading is a craft, not an exact science.
If you are a long-term trader, you can choose Weekly as the middle chart,
and the line as the month long period. In line with trend indicators on
the analysis, and develop strategic decisions in order to determine to do
more, short or wait and see.
The first week of triple filter theory using the MACD chart columns line
slope as trend indicators. It is very sensitive and issued a number of
trading signals. Now I prefer to use the online week exponentially
weighted moving average line on the chart as my main long-term trend
indicators.
Week weighted moving average chart up on the index, then that is an
upward trend, should do more, or wait and see. When it dropped, then that
is a declining trend, it should be short, or wait and see. I used the 26-
week moving average, because it represents the public six months to
market transactions. Traders can test the average of the parameters and
find the optimal moving average to adapt to particular market. Other
indicators also true.
I plan to continue to use MACD week column line, the weighted average
when the index is consistent with the MACD line column, echoed each
other, then that motivated the establishment of a trend, to encourage
traders to invest heavy positions. The Week column chart MACD line and
the price deviation from occurring, it is technical analysis the
strongest signal, even more than the index of the weighted average of the
tips.
The second filter
Return to the middle of the chart, and respond by oscillating indicator
to find the direction of long-term trend trading opportunities. When the
week bullish trend line, waiting on line oscillation index down and
issued buy signals. In pullbacks, in the waves than the top bid to
safety. Weekly call, and put on line oscillation index, they can be more
than the previous one open position, profit out, however, traders can not
set up short positions at this location.
Put the week when the line, waiting on line and send short shock rise
signal indicator. In the rebound short, short follow-up than the new low
security. Online issue of the day oscillation index buy signal, you can
close out the empty one, profit out of, but should not be to establish
long positions in this. Oscillator options, depending on your trading
style.
Conservative traders will choose a relatively slow oscillating indicators
such as MACD line column on line or KD, for use in the second tier of the
analysis filters. Chart bullish week, the wait for the MACD line down to
zero axial column below, and again when the elbow up, or down to oversold
areas such as KD buy signal given the opportunity to find long on.
Bear market and vice versa. Week chart shows the downward trend
indicators, the zero axis are on the map above the MACD line column
turned down, or up to KD oversold line and send signals to look for short
opportunities empty.
The main trends in the early stages of the slow oscillation index results
quite good, the price at this stage to run more slowly. Acceleration in
the trend of the price range of shallow pullback amended, in order to
jump on the trend of rapid movement, traders need to use a fast
oscillation index.
Active traders can use strength index (Force Index) of the two-day
weighted moving average (parameters can be longer, according to market
research, finding the most optimal moving average parameters). Zhou map
upward trend, strong on the map index dropped to below the zero axis,
while there is buying opportunity. Bear market and vice versa. Week chart
trend downward, strong two-day exponential moving average weighted index
rose to above the zero axis, then there selling opportunity.
Other indicators can also be used in triple filter, the filter can be
used towards the first tier of the system (Directional System) or a trend
line. The second filter can be used MTM, RSI, Elder-ray indicator (Elder-
ray Index) and so on. The second filter stage in the establishment of
profit and stop-loss goals, and measure the risks and potential benefits,
the decision to make whether transactions.
Set stop-loss. Stop is a safety net, it will cut the losses incurred by
bad deal. Stop transaction must be located to prevent a transaction or
series of losses caused by adverse destroy account. To become a winner,
this is a necessary step, but many people do not set stop, think that
would have beaten both sides. Without the stop, the original single loss
will ultimately benefit. Stop will allow them to quickly set up in
trouble, because in any case with a stop, the market will destroy their
stops.
First of all, the market is not easy to be destroyed in the position of
the loss, stop-loss orders will be placed on the market range of external
noise (see the security zone, p. 173).
Second, the occasional beating on both sides is to ensure the long-term
safety should be the price. Even if you Zoran superior analytical
capabilities, it should set stop-loss operation. Only way to move the
stop loss, that is the direction along the trading profits. When the
market towards the direction of movement in your favor, the previous
stop-loss adjusted to the flat stop. Favorable trend in the time ahead,
all the way to adjust the carrying amount of stop loss to protect your
profits. Professional traders never stop to turn into profit.
A loss can not let your loss of more than 2% of total assets (see Chapter
7, funds management formula), give trading signals if the triple filter,
on balance, that the deal with a reasonable stop-loss, possible loss of
2% of assets risk, then give up the deal.
Set profit target. Set profit targets to be flexible, depending on your
purpose and funding. If you are funded, and is the long-term traders,
beginning in the bull market to build a larger position in the week
bullish trend line under the premise of buying opportunities in the day
when the map appears continuous Jiancang. In the weeks go Figure
exponentially weighted average normal profits out. Bear the contrary.
Another approach is that when prices hit the track channel open when the
profits, do more, the price arrived at in the profit open channel tracks,
and again back to the Sun in the average price of more time to do. Short,
then the price dropped to Tongdaoxiagui open, and the price rebounded to
the average time to go short again.
Short-term traders will use a strong index (Force Index) of the two-day
exponentially weighted moving average as the basis of appearance. Upward
trend, in the average strength index was negative, do more, when in turn
positive open. If the downward trend in short, then the two-day moving
average strength index was positive, short, and turned negative, open.
Novice to do the transaction the same way as buying lottery tickets -
After buying tickets, the will just sit in front of the TV to see if he
win the lottery. And professional standards of the transaction not only
consider the approach will seriously consider playing issues, energy
costs, compared favorably with the approach.
The third re-filter
The third re-entry filter point for the development of accurate, real-
time transmission of data on the resourcefulness of the transaction were
useful, but may do harm to those who lack experience in day trading
novice. If you can not get real-time data, day traders can use to amend
the method of break and back into the market.
Issued a buy signal current dual filters (for weekly call, on line
callback), the day before yesterday or than the high point high point
high a value will be placed on a Tick pay. Tick is the smallest market
fluctuations in the use of units. We look forward to once again extend
the main trends and homeopathic breakthrough occurred when the price up.
This entry orders method applies only to the day's trading. If
prices break through the previous day's high, you will
automatically deal more than a single approach. Traders do not even have
to observe the day's volatility, it can be to take care agent.
Two short first filter when prompted (weekly bearish, Date Line rebound),
the first day of the low or low a Tick from the low value of the local
hang an empty one. We look forward to decline representation, and in the
event of breaking down when the follow-up, if the price broke the
previous day's low, then the empty single transaction.
The amplitude may be a great day, so everything without doing much at the
top, higher cost. Another approach is to buy a callback. If you plan to
pullback in the price index of the weighted average time to buy, the next
day moving average will be calculated to reach the location, in the
corresponding price admission. Indicators can be used to secure the
region (SafteZone indicator, see 173) to observe the day before the
market fell below low distance, and the corresponding price in the
market. Short bear market and vice versa.
Break up the advantages of buying time to follow the trend of running.
Drawback is the point position to buy relatively high, and too wide a
stop. The benefits of buying a callback is to buy the points are low and
too narrow a stop. The disadvantage is susceptible to reverse the
downward trend of the U-turn. "Breaking up" more
reliable, but less profit. "Callback approach" risky,
but higher profits.
Admission with real-time charts as far as possible, the current face of
the double filter tips to do for a long time (weekly gains, on line
callback) to observe the real-time data, and determine to do more. Period
of time after opening (Opening Range), if the price of more than 15-30
minutes before the high point occurred when a breakthrough is timely
follow-up, or the use of technical analysis, chart analysis of days to
determine the appropriate entry point. Short, the observation period
after the market opened, breaking down occurs when the follow-up. Or by
analyzing the days of the chart to look for opportunities, and real-time
data entry.
Real-time trading point on the chart to find the methods and the same day
chart, only the former suggest the frequency of admission to speed up
many. Traders use of a week of plans or monthly chart entry, then the
same cycle must be played. The use of a real-time data entry, should
resist the temptation of days chart signals. Weekly and daily wire frame
of the transaction, often require several days positions, traders should
not be subject to price fluctuations in the troubled days of the chart.
What is a trading system? A way, a trading system, a technology between
these concepts What's the difference in the end?
One way is a general trading philosophy, for example: homeopathy
transactions, will buy when the trend up, trend down on the sale or
purchase in the market undervalued, overvalued by the market to sell.
Historical homeopathic buy in the support area, sell in the pressure
zone.
A trading system is the method of application of a rule group. For
example: If your operation is with the city, then the system may line up
in an average week, on average going up, buy (MACD cylindrical body can
replace the average).
A kind of technology is the means of buying and selling of special
skills, for example, when a trading system gave a buy signal, while the
skill to tell us when the price exceeds the previous day's
highest price or the price received was a small Yang Xian (small Yin
Xian), the transaction.
Three of the filters several times through the structure accompanied by a
shock indicators and trend indicators to analyze the entire market. We
use trend indicators in the time structure of a large chart strategy to
do more, or short, using the shock index structure in the small time to
buy or sell (entry points). General approach has not changed, but the
system - the choice of specific indicators of development in the foot in
a certain technology is the same.
Triple filter test each potential transaction, or test with three
filters, each layer filter structure with a different time and targets,
these filters to filter a lot of transactions, and those transactions
also very attractive at first appear, three-filter system for a cautious
way to trade.
Conflict indicators
Technical indicators to help identify trends or to reverse the ratio of
the price chart is more intuitive, you modify the index parameters in
order to maintain your own ideas, careful not to let indicator to tell
you want to see and to indicators of blind random change (correct target
parameters should be based on).
We can put all the indicators are divided into three categories:
1, trend indicators to help determine the trend. Moving average, MACD
line, directional systems, and other market up will rise, fell by the
index to fall, and when the market entry Jiao Yi will be available within
the scope of execute a command issued indicators.
2, shock indicators overbought oversold to capture through the reversal
point, such as ... ...
3, mixed-type indicators help to assess (measure) market in the mood, ...
... reflect the extent of people's crazy
Different types of indicators are often given conflicting signals, trend
indicators may start up, tell us to buy, but shocks become overbought
indicators tell us to sell, it is very easy to fall into transactions
emotional thinking, and began to follow some send your own signal
indicators like to trade. A trader must have a classification of all the
indicators used, and their understanding of the system.
Time structure of the conflict
An indicator can tell us the same stock the same day, the trend is
upward, downward trend may be, why is this so? A week moving average line
may be increased, given a buy signal, but the line dropped in Japan,
gives a sell signal. This may re-appear in the one-hour trend graph and
tell what we should do an upward trend, but the chart in 10 minutes, then
told we should sell.
In the end which a signal is a signal that we should follow? Amateur
engaged in the use of this will seem very quiet, they only seize a time
structure. Most people are on line map users to use their indicators
regardless of the time structure of the other. Such behavior, and only
one of the main trends in production from week online, or a strong rise
in the outbreak, the hour chart and reverse the direction of their
original deal. Understand the temporal structure of any one say that they
are not a genuine trader.
People in the daily chart trading losses, but often they can imagine a
small trend of faster and better to do, or use LIVE DATE, if you can not
preserve the profitability of each month, using the ever-changing time
structure will only make you less money faster.
Begin by choosing your favorite big time structure, this time the
structure is usually used by you, and call center structure. To be
multiplied by 5 times as long period of time structure time structure,
application trends to make strategic decisions to follow the indicators.
In the end do more short or no? Now it is a long on a reasonable price?
If the chart is the long bear market or bull market cycle, back to a
small one cycle (the middle of the structure chart), and used to buy or
sell volatility index to find the location (under the direction of the
trend in the long-period). In exchange for the establishment of small
periodic chart just before the winning point and stop. If you can, then
adjust in smaller cycle entry and exit points.
The principle of triple filtration system
Triple filtration system to solve the target and the time structure of
the conflict, it is within the structure of the long period of time to
make strategic use of trend indicators for the decision, this is the
first level! It is with shock indicators continue to make tactical
decisions (in the middle of the time chart of the buying point and
selling point), this is the second floor! The third layer provides a
number of ways (changing the order of sale or otherwise), we may use the
index or by using short-cycle execution graph is possible.
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