3 Screen Elder
The 3 Screen Elder is a trading strategy that involves analyzing multiple time frames to identify potential trading opportunities. This approach is based on the idea that by looking at the same market from different time perspectives, a trader can gain a more comprehensive understanding of the market’s trends and patterns. By combining this with the insights from Alexander Elder’s trading strategies, traders can make more informed decisions.
1. Introduction
The 3 Screen Elder strategy is an adaptation of Alexander Elder’s trading approach, which emphasizes the importance of understanding the market’s context and the trader’s own psychological state. This strategy involves using three screens to analyze the market from different time frames, allowing traders to identify trends, support and resistance levels, and potential entry and exit points.
2. Features
The 3 Screen Elder strategy has several key features, including:
- Multiple time frame analysis
- Identification of trends and patterns
- Use of support and resistance levels
- Emphasis on trader psychology
3. Trading Signals
To interpret trading signals using the 3 Screen Elder strategy, traders need to analyze the market from three different time frames: long-term, medium-term, and short-term. The long-term screen helps identify the overall trend, while the medium-term screen provides more detailed information about the trend’s strength and potential reversal points. The short-term screen is used to time entries and exits.
4. Strategy Tips
Some practical tips for using the 3 Screen Elder strategy include:
- Start by analyzing the long-term trend to determine the overall direction of the market
- Use the medium-term screen to identify potential entry and exit points
- Use the short-term screen to time entries and exits
- Always consider the trader’s psychological state and the market’s context
