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Triple Screen Trading System The principle of triple filter (from Alexander. Elder, &quot;to trade for a living,&quot; 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&#39;s trading. If prices break through the previous day&#39;s high, you will automatically deal more than a single approach. Traders do not even have to observe the day&#39;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&#39;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. &quot;Breaking up&quot; more reliable, but less profit. &quot;Callback approach&quot; 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&#39;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&#39;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&#39;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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