By some estimates, more than 40% of professionals in one way or another using the system. Moreover, it is the most simple and well-known from the public system, and we recommend that beginners start with it.
TC was created by Alexander Elder in 1985 and since then, it actually has not changed, indicating that its reliability and wide applicability, as the stock market and Forex market.
It's no secret that the main problem of trading is that the same indicator may give conflicting signals in different time scales. For example, it may indicate a rising trend in the afternoon schedule and descending trend in the time schedule. In other words, the testimony of the indicators are contradictory, and trading signals depending on the time period schedule.
And the problem is only one solution: Split decisions in several stages by analyzing the various taymfreymy using different instruments.
Without a doubt, the best way to approach such a clear division provides a method of three screens. You build the 3 graphics and consistently analyze them.
First, select "Medium" screen - it is time scale, which best match the duration of conservation open positions (usually four or time schedule).
Next, selected long-term and short-term scale, which is an order of magnitude different from the average, for the average screen dnevok is, respectively, a day (four hours) and time (15 - or 5 - minute) charts.
Analysis of the "triple screen" starts with a long-term schedule. The system refers to the trend, and the first task, which is worth - the definition of the basic long-term trend in the direction of which is to play, and his condition - a beginning, middle or end.
Accordingly, this schedule should be applied trend indicators, the main of which is the MACD-Histogram. The direction of the trend determined by the ratio of two recent strokes or points of histograms: the histogram rising, when the last point above the previous one, points to the upward trend, downward histogram indicates the need to play to sell.
Please note that:
rotate or decline histogram refers to the end and spread trends.
turns up, taking place below the zero line, give a strong signal to buy, what turns above the line.
turns down, occurring above the zero line, give a strong signal to sell, what turns below the zero line.
We recommend that you use multiple indicators of trends to avoid false alarms. Basic rule: play only in the direction of the trends identified in the first long-term "view."
For example, at some point in time, we see in the chart H4 bright bullish trend:
Histogram MACD is in the positive area, and rising.
On average, the second screen is necessary to identify the movement against the major trend - the "wave, which runs against the current." This is the yellow color of traffic lights - need to start preparing for the transaction, turn on correction of the trend indicates the possibility of buying or selling.
When the main trend of improving on the first screen, for example, the four-hour schedule, time drops indicate the possibility of purchase, with the weekly trend of decreasing daily ups indicate the potential for sales in the end found correct. On the second screen is necessary to use signals, such as RSI, Stochastic, etc.
At the same time:
signal is fed to the purchase, if the upward trend in the first screen, and signals on the second screen, such as RSI, fell below the line pereprodannosti 20% and starts to recover;
signal for the sale is filed, if the first screen of the trend down, and RSI on the second screen was lifted above the line perekuplennosti 80% and starts to fall.
Suppose. The picture we see a perfect moment: Stochastics turned after correction and gave the order for purchase.
"Third Screen" is not even a timetable - a method of placing orders to buy or sell on the basis of the indicators in the two previous graphs. Elder calls it "rolling the order."
So:
- If the major trend is up, and correction - down, then sliding the signals at the time of purchase capture high-level resistance to breakthrough. The method of moving a purchase order is triggered when, for example, to screen the long-term weekly trend is up, and the signalman on the second day the screen is falling. Place an order to buy a little above the maximum of the previous day. With the rise in prices for the purchase of the position should be opened as soon as the price rises above the crest of the previous day to put level. If the decline in prices continues, it will not affect the order of purchase. Then the lower order of the day at one tick above the last peak prices.
«Continue down the order a day of purchase, unless it has to be raised, or the week indicator, unfolded down, does not cancel the signal Sales».
- If the primary trend is down, but a correction - the top, then sliding the signals at the time of sale capture breakthroughs lower level of support. In a weekly trend wait until daylight signal recovery method involves no moving order of sale. Place an order to sell a bit below the minimum of the last day. As soon as the market turn down, you will automatically open a position for a fall.
If price increases continue, the level of orders every day slide on sale for a few ticks below the minimum of the last candle. The purpose of moving the order of the sale - to capture the time intraday bottom breakthrough. Order shall come to force, when the daily uptrend ends, and the week-long downward trend again come into their rights.
How to protective orders in the system triple screen
Stop-loss order for anchor in the position to increase should be slightly below the minimum of the previous game or the day - from the smallest of the two.
Stop-loss order for anchor in the down position should be slightly above the maximum of the last game of the day, or - at most two. Further orders can shift the course of the market.
A. Elder. «How to play and win at the stock exchange».
Now let's see, how true, we predict the market.
As you can see, the forecast proved accurate. And having such a movement, you can increase your deposits of approximately one and a half - twice. This is a truly powerful system.
It's no secret that the main problem of trading is that the same indicator may give conflicting signals in different time scales. For example, it may indicate a rising trend in the afternoon schedule and descending trend in the time schedule. In other words, the testimony of the indicators are contradictory, and trading signals depending on the time period schedule.
And the problem is only one solution: Split decisions in several stages by analyzing the various taymfreymy using different instruments.
Without a doubt, the best way to approach such a clear division provides a method of three screens. You build the 3 graphics and consistently analyze them.
First, select "Medium" screen - it is time scale, which best match the duration of conservation open positions (usually four or time schedule).
Next, selected long-term and short-term scale, which is an order of magnitude different from the average, for the average screen dnevok is, respectively, a day (four hours) and time (15 - or 5 - minute) charts.
Analysis of the "triple screen" starts with a long-term schedule. The system refers to the trend, and the first task, which is worth - the definition of the basic long-term trend in the direction of which is to play, and his condition - a beginning, middle or end.
Accordingly, this schedule should be applied trend indicators, the main of which is the MACD-Histogram. The direction of the trend determined by the ratio of two recent strokes or points of histograms: the histogram rising, when the last point above the previous one, points to the upward trend, downward histogram indicates the need to play to sell.
Please note that:
rotate or decline histogram refers to the end and spread trends.
turns up, taking place below the zero line, give a strong signal to buy, what turns above the line.
turns down, occurring above the zero line, give a strong signal to sell, what turns below the zero line.
We recommend that you use multiple indicators of trends to avoid false alarms. Basic rule: play only in the direction of the trends identified in the first long-term "view."
For example, at some point in time, we see in the chart H4 bright bullish trend:
Histogram MACD is in the positive area, and rising.On average, the second screen is necessary to identify the movement against the major trend - the "wave, which runs against the current." This is the yellow color of traffic lights - need to start preparing for the transaction, turn on correction of the trend indicates the possibility of buying or selling.
When the main trend of improving on the first screen, for example, the four-hour schedule, time drops indicate the possibility of purchase, with the weekly trend of decreasing daily ups indicate the potential for sales in the end found correct. On the second screen is necessary to use signals, such as RSI, Stochastic, etc.
At the same time:
signal is fed to the purchase, if the upward trend in the first screen, and signals on the second screen, such as RSI, fell below the line pereprodannosti 20% and starts to recover;
signal for the sale is filed, if the first screen of the trend down, and RSI on the second screen was lifted above the line perekuplennosti 80% and starts to fall.
Suppose. The picture we see a perfect moment: Stochastics turned after correction and gave the order for purchase.
"Third Screen" is not even a timetable - a method of placing orders to buy or sell on the basis of the indicators in the two previous graphs. Elder calls it "rolling the order."
So:
- If the major trend is up, and correction - down, then sliding the signals at the time of purchase capture high-level resistance to breakthrough. The method of moving a purchase order is triggered when, for example, to screen the long-term weekly trend is up, and the signalman on the second day the screen is falling. Place an order to buy a little above the maximum of the previous day. With the rise in prices for the purchase of the position should be opened as soon as the price rises above the crest of the previous day to put level. If the decline in prices continues, it will not affect the order of purchase. Then the lower order of the day at one tick above the last peak prices.
«Continue down the order a day of purchase, unless it has to be raised, or the week indicator, unfolded down, does not cancel the signal Sales».
- If the primary trend is down, but a correction - the top, then sliding the signals at the time of sale capture breakthroughs lower level of support. In a weekly trend wait until daylight signal recovery method involves no moving order of sale. Place an order to sell a bit below the minimum of the last day. As soon as the market turn down, you will automatically open a position for a fall.
If price increases continue, the level of orders every day slide on sale for a few ticks below the minimum of the last candle. The purpose of moving the order of the sale - to capture the time intraday bottom breakthrough. Order shall come to force, when the daily uptrend ends, and the week-long downward trend again come into their rights.
How to protective orders in the system triple screen
Stop-loss order for anchor in the position to increase should be slightly below the minimum of the previous game or the day - from the smallest of the two.
Stop-loss order for anchor in the down position should be slightly above the maximum of the last game of the day, or - at most two. Further orders can shift the course of the market.
A. Elder. «How to play and win at the stock exchange».
Now let's see, how true, we predict the market.
As you can see, the forecast proved accurate. And having such a movement, you can increase your deposits of approximately one and a half - twice. This is a truly powerful system.
No comments:
Post a Comment