The “Elder Three Screens” strategy is based on the principle of filtering operations by the older time interval, as well as identifying suitable entries to the market by the lower interval. This method increases profit and reduces risks. This approach combines opposite oscillators and main trend indicators. This set of tools provides the ability to eliminate unprofitable transactions.
The first screen is used to find the main trend. To determine its strength in the framework of this strategy allows the MACD indicator. When crossing the zero mark and consistently lowering, we can speak about a downward movement in the market.
On the second screen, the trader must find the most favorable point to enter the market. It is recommended to use oscillators for this. From them you can easily determine the level of overbought and oversold financial instruments on the market. Oversold in this case serves as a signal to buy an asset.
On the third screen, we see the smallest timeframe, it is designed to enter the market. Before carrying out the transaction puts the necessary knowledge of the stop-loss, take profit and a pending order.