I am posting following video of Dr. Elder in anticipation that BP Community would love to hear Dr. Alexander Elder Live from his Trading Room
Learn trading techniques from legendary, and ever popular, Master Trader; Dr. Alexander Elder
In this 60 minute live presentation, Dr. Alexander Elder will explain his famous indicators and trading systems. Dr. Elder’s methodologies are documented in his well-know books “Trading for a Living” and “Come into my Trading Room”. Now you have the chance to hear from him live!
About Dr. Alexander Elder
"One of the most intriguing characters on the commodity scene is Alexander Elder, MD. He has his fingers in many different pies and does a quality job in all of them. Elder is a living advertisement for the American dream and the place of futures trading in it." – Commodity Traders Consumer Report
“How Alexander Elder grew up in Estonia, was educated as a psychiatrist, escaped from a Soviet ship in Africa and became a successful futures trader and head of his own firm, Financial Trading Inc. in New York, would make an interesting book itself.” – Futures Magazine
“Dr. Alexander Elder offers a unique view on the markets. A New York City psychiatrist and professional trader, he runs Financial Trading, which helps people become better traders.” – Financial World
Unfortunately, 141 people have viewed this thread up to this time of my posting
, but none of them click the video to watch it.
Perhaps, either @TradeViper or @elenmirie do have interest to watch the Dr. Alexander Elder’s video because both of them have talked about him in their posts.
Triple screen doesn’t have a definitive buy or sell signal. It works as a system of confirmations from one time frame to the next. This is done such that the evidence points to a suitable time to enter a trend in the likely direction the market is moving.
This can be both a good thing and a bad thing. Because while there are no rigid criteria, this does mean you can incorporate your own thinking into the strategy. It also means you can make it simpler by using fewer indicators.
I think it is good to remember that, although we look at three different screens with three different timeframes and purposes, we are looking at the same price movements on all three.
There are many methods that use multiple timeframes and it is very useful to see differing presentations of the same price development, and there can be great benefits from that - but there is no magic here. For example a 10-period EMA on a daily chart is approx the same as a 60 EMA on a 4H chart and a 240 EMA on a 1H chart.
In order to show how these multiple screens can work together and in relation to each other - and sometimes not - here is a typical MA pair (10 and 20 EMAs) on a daily, 4H and 1H - but all three superimposed on one chart:
The yellow band is the 1H 10-20ema pair, the green band is the same pair on a 4H TF and the grey band is the same pair on the daily TF.
I think it is interesting to observe from this how the short term trader’s environment (1H) compares with that of the medium trader (4H) and longer term trader(D). When the market is trending, as in this picture, it is easy to see how one can enter on the 1H crosses whenever they are in the same direction as the longer term - a good example of the triple screen principle:
but when the market ranges and the daily becomes almost a straight line then the triple screen principle is more vague - although the 1H/4H still seems to well together:
Thanks for taking time and showing the examples of graphical presentation.
But the purpose of posting the above video as well as article was that the BP community get educational insight of it and try to build their own trading system/method with the help of that material as per their trading style or personality.
I have also been testing two different trading systems side by side since long i.e one was Ichimoku cloud and other was EMA crossover.
And what a coincidence that my EMA system is also based on the principles which you have described in your post.
Though the period of EMAs are different. They all are placed on Daily, 4H and 1H TF like they are the proxy of each other. And I can easily judge the current position of trend on all of the three TF.
If the price is above the Red and Blue lines on daily tf, it means that it is also above the longer EMA (green line) on 4h and 1h tf. And on 4h tf the blue line is the proxy of 1h tf green line and green line of 4h tf is the proxy of blue line of daily tf. And the same rules would apply on 1h tf.
So I can easily assess the current price movement by viewing any of the tf chart.
That is, in my humble opinion anyway, a very sensible approach.
It certainly helps to expose the current main trend (our absence of such).
But i think, as with any method, the toughest part is defining the optimum exits rather than the entries. There is not nearly enough consideration amongst traders about how to exit effectively.
Trends tend to end more abruptly than they start and that can cause a serious loss of existing profit or even turn a promising trade into a loss when a method is based on MAs.
Yes you are right. As I have told you earlier while discussing on my other post that I have taken more emphasis on SL and trailing stop strategies when testing my systems. I also read a lot of material on it.
So, I prefer to use ATR for my SL and trailing stop in accordance with the trading period (day/swing/longer term trade). And I also try to use correct position sizing as per my MM rules to cover my risk.
Edit: However, there are other tools one can use for exit or TP; like Trendlines, Regression channel, Envelope or Fib retracement/extension etc.
Thanks, @anon58863749, I’ve marked the video to watch tomorrow. It’s an hour long, and I need to have the space to do that! Thanks very much for sharing it.
Thanks very much for sharing it.