Strategy TRADE EXPRESS = Modified strategy Alexander Elder + Sniper X
Many people think that their happiness will become a successful trader hampered by the lack of the necessary amount of money for easy and quick start in Forex. They are also convinced that the larger the Deposit, the "solid" rate and, accordingly, the bigger the prize. Not knowing theory without sufficient practice, people "throw" money at the feet of the "Forex God" and praying in front of a screen about the wonderful winnings. Meanwhile, curve a chart in cold blood crawling in the direction known only to her... the Main goal of the trader to determine or predict where the price is moving.
Depend on it, be it a profit or stay in loss. Great trader secrets "behind seven seals" does not exist. On how to trade and to track the direction of the market, many books are written. Describes all the tools of the trade, offering traders have developed numerous trading strategies – simple and complex.
Many traders to generate each transaction used to refer to a single screen or indicator. In principle, there is nothing wrong to use for the decision of a single indicator. But what if your chosen indicator is fundamentally flawed? If the current time range already does not display the current trend of price behavior? In addition, there is another problem, when an upward trend following indicators grow and produce signals "buy", while oscillators suggest that the market is overbought and give a signal "sell". In downtrends trend-following indicators offer to play down, but oscillators become oversold and need to buy. On the market, confidently going up or down, trend-following indicators are ideal, but they become excessively volatile when markets are trading in ranges. In the trade channel, however, best choice be oscillators, but when the market starts to follow the trend, they give premature signals. To determine the balance of indicators, traders are trying to make average readings from a set of indicators. But here they are hampered by one major drawback. The predominance of trend indicators oscillators, the result is distorted in the direction of the trend following. Conversely, the use of oscillators shows a predominance of signals is made on the basis of oscillators. The system Alexander elder at the same time removes the drawbacks of the use of individual indicators and at the same time takes into account the testimony of all types of indicators. Trading system triple screen applies to the testimony of the prices of three unique test or screen.
The PROBLEM of TIME SCALE
There is a problem, which may lead astray not only the indicators, the trader is the problem is that the long-term trend may be moving in one direction and short in the opposite. For example, the daily trend shows that the price is moving up, while at the time, and even more 15-minute time range price maybe several times a day to move in the opposite direction, and, accordingly, the indicators will depend on the time scale to which it is applied. To solve this problem A. Elder broke the time range into 3 parts:
• Long-term time range;
• the Intermediate time range;
• Short-term time range.
To calculate the time range I need to start to decide which timeframe you will trade. Then calculate long-term and short-term trend. To do this, And the elder uses the figure 5. Multiply the current time scale by 5 and rounded to the nearest integer to obtain the long range and divide by 5 for short.
Initial SCREEN: the MARKET FLOW Traders when using the three screens needs to start with the analysis of long-term time range. At long range the trader must determine the direction the long-term trend, using trend indicators. Any trend-following indicator preferred by the trader, it is can be used as the first indicator of the system of three screens.
SECOND SCREEN MARKET WAVE the Second screen is a screen which will be the trade. The beauty of the method of three screens is that the direction of trade we have already identified and strong movement will not prevent us to use oscillators to obtain the best signals. When the first screen shows an uptrend, the system considers three screens on the second screen only buy signals and ignore sell signals. When the flow of the market shows falling prices (the opposite situation), then the trader must ignore buy signals and to identify signals for sale.
THIRD SCREEN: RIPPLES IN the MARKET trading System 3 screens is similar to the ocean or river. The first screen shows the direction of the main flow. The second screen is the surface waves that can go against the flow. The third screen can be called a ripple on the surface, and kept to the shortest period of time.
The system Alexander Elder was announced in 1986. Much has been written about her during this time.
I have modified for today's opportunities. A detailed description for the members of the closed group will be in the newsletter.