What will three screens show us?

The Elder’s Triple Screen Strategy: Past, Present, and Future

The Elder’s Triple Screen Strategy is a legendary trading system developed by Alexander Elder over 30 years ago. Its core feature is the use of multiple timeframes for market analysis, which helps traders avoid false entries and increases the likelihood of successful trades. Over decades, this strategy remains relevant due to its flexibility and ability to adapt to changing market conditions. Let’s explore it in detail.

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The Essence of the Elder’s Triple Screen Strategy

This strategy involves analyzing a single trading instrument across three timeframes: long-term, medium-term, and short-term. This approach allows traders to get a comprehensive view of the current market situation:

1. Long-term screen — identifies the general market trend. Wider timeframes such as weekly or daily charts are typically used here.
2. Medium-term screen — detects corrections within the main trend. This screen usually involves timeframes that are four times shorter than the long-term one (e.g., daily for a weekly trend or four-hour for a daily trend).
3. Short-term screen — helps identify optimal entry points. Here, even smaller timeframes are utilized, such as hourly or 15-minute charts.

This comprehensive analysis helps traders understand trends, corrections, and entry points at different levels, addressing the issue of false signals often encountered when relying on a single timeframe.

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Advantages of the Strategy

1. Adaptability to Different Market Conditions
   The Elder’s Triple Screen Strategy is suitable for trading across various financial markets, including Forex, stocks, commodities, and even cryptocurrencies. By analyzing multiple timeframes, it effectively handles both trending and consolidating markets.

2. Versatility in Application
   This strategy is not limited to one type of trading. It works well for both medium-term and long-term strategies, catering to traders who prefer avoiding short-term noise while focusing on significant market movements.

3. Risk Mitigation
   Multi-level analysis minimizes the risk of false entries, which is particularly beneficial in volatile markets.

4. Harmonious Integration with Indicators
   The Triple Screen works seamlessly with classic indicators such as MACD, stochastic oscillators, and moving averages. These tools enhance the strategy’s ability to identify key entry and exit points.

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Drawbacks of the Strategy

1. Complexity for Beginners
   Analyzing multiple timeframes requires certain skills and experience. Beginners may struggle with interpreting signals and selecting appropriate timeframes.

2. Challenges in Flat Markets
   In low-volatility markets, the strategy might generate fewer signals or cause confusion due to discrepancies between trends on different timeframes.

3. Dependence on Indicators
   Although the strategy does not strictly require indicators, their use is often necessary to confirm signals, which can introduce delays.

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Application in Different Markets

1. Forex
   The Triple Screen Strategy works excellently in currency markets. The long-term screen identifies the overall trend (e.g., weekly chart), the medium-term screen analyzes corrections (e.g., daily chart), and the short-term screen identifies entry points (e.g., four-hour or hourly chart).

2. Stock Market
   This strategy is effective for analyzing highly liquid stocks. For instance, the long-term trend can be observed on monthly charts, corrections on weekly charts, and entries on daily charts.

3. Commodities
   For trading gold, oil, and other commodities, the Triple Screen helps filter out false signals caused by high volatility.

4. Cryptocurrencies
   The inherent volatility of cryptocurrencies makes this strategy particularly useful. Multi-level analysis helps traders avoid impulsive decisions and account for significant price fluctuations.

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Relevance of the Strategy in 2025

As financial markets evolve and trading methods become increasingly automated, the Elder’s Triple Screen Strategy remains relevant due to its flexibility and compatibility with modern technologies.

1. Rise of Algorithmic Trading
   While originally designed for manual trading, the principles of the Elder’s Triple Screen can be adapted to create algorithmic systems that analyze trends across multiple timeframes.

2. Integration with Modern Platforms
   Contemporary trading platforms like MetaTrader, TradingView, or Binance provide all the tools needed to implement this strategy, including indicators and multi-timeframe analysis capabilities.

3. Market Volatility
   In today’s volatile markets, the Triple Screen Strategy helps traders maintain clarity and avoid emotional decisions.

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Conclusion

The Elder’s Triple Screen Strategy remains one of the most versatile and effective trading systems, suitable for both professionals and experienced traders. Its greatest strength lies in its multi-level approach, which considers all aspects of the market: trends, corrections, and entry points. Despite its challenges, the strategy remains relevant thanks to its adaptability to different market conditions.

 

If you want to explore the Elder’s Triple Screen Strategy in greater detail and learn how to apply it effectively, refer to educational materials and courses. This will help you unlock the full potential of the strategy and make your trading more successful.