Elder's three-screen strategy - detailed description, indicators, books

This type of trading is used by most Forex traders; they themselves do not even suspect that their work is based on the “Elder’s Three Screen Strategy”.

This trading option is so simple that almost any novice trader can use it.

It should also be noted that it is completely universal; the three-screen strategy can be applied to almost any trading instrument, both on the Forex market and on other financial markets.

Elder's three screens can be used either as a standalone trading option or as an addition to other forex trading options.

True, there is a fairly common opinion on the effectiveness of this strategy; it all depends on the market situation, your attentiveness and work experience.

As is already clear from the name itself, trading is based on the analysis of three screens, or time periods of the trading terminal.

For work, it is best to use the following timeframes:

1. M30 – medium-term time period of 30 minutes.

2. M5 – short-term time period of 5 minutes.

3. H1 – long-term timeframe.

If you wish, you can move the screens in one direction or another depending on your preferences, the only condition is that they all must be related to intraday trading.

We will conduct trading according to the following scheme:

1. First, we analyze H1 and determine the direction of the main trend, find the starting point of the existing trend and the middle.

2. On M30, we check for the presence of pullbacks against the main trend; this will be an additional guideline when opening positions.

3. On M5, find the market entry point.

The signal to open a position in the Elder three-screen strategy will be the beginning of movement towards the main trend on M5, while the direction of the transaction should coincide with the beginning of movement on M30.

The above graphs show that the Forex market is currently dominated by an upward trend, and the price is rising simultaneously on three screens. For greater efficiency in the current situation, I would wait for a pullback on the M5 and only then enter the market.

For greater clarity, it is recommended to use the stochastic indicator ; in this case, a buy transaction is made if the stochastic line leaves the oversold zone and begins its upward movement on two lower time intervals.

Alternatively, other trend indicators ; they will make the work easier and facilitate the search for points to enter the market.

Application of stop orders in Elder's three screen strategy.

the stop loss , focusing on the minimum or maximum points on M30, depending on the direction of the transaction; usually its value is around several tens of points.

Take profit - according to a similar scheme, only in the direction of opening a transaction, the main task of this order is that it manages to close the transaction before the trend begins to roll back.

Elder's three-screen strategy allows you to find the most favorable points for opening a position, and thanks to this, make a profit. This is, so to speak, a trading classic; it can be used even without additional technical analysis indicators on almost any time frame. It’s not for nothing that new generations of traders have been using it when trading on the stock exchange for more than 50 years.

Setting up three screens for the Elder strategy - https://time-forex.com/sovet/ustanovka-tri-ekrana

Book from the author - https://time-forex.com/knigi/silny-signal-elder