Hi there. I’ve been trading my system for a few years now. with limited success. what i trade is a 3 screen system. (similar to Alex Elders trending system). so a Weekly and Daily chart must have trending in the same direction. than 4hr signal screen. But i feel that because of the weekly chart moving so slowly, it can take months for a chart completely turn around. should i maybe drop the Weekly and continue with a 2 screen system? Right now for instance. i have not one instrument (out of 7) which is trending in either direction. I’m starting to think i’m choking off opportunity because of the slow movement of my charts
you could.
but you could aswell just simply start following trends instead of looking for reversals on the weekly chart.
if it takes months to turn around it meams that its going into one direction for months (unless its rainging) so why dont you try to take advantage of that instead of looking for tops and bottoms?
on the other hand august is a weak month and trends usually pause in august that explains why you didnt get many signals the last few weeks.
Never cared for the whole weekly trend is down and daily trend is down then we look for shorts on a 4 hour. I have used and do use multiple time frames but I do it a lot differently. I look for maybe the weekly overall direction is down but the price has moved up into resistance. Then Drop to the daily and look for the daily to have moved up into resistance but also showing a reversal pattern such as a inverted hammer then drop to the 4hr or whatever chart and look for the exact same setup as was found on the daily. Typically though I do generally only use 2 charts.
Probabilities tend to be higher with the more confirmation you have. You will get less trade setups but thats all where patience comes in. I would rather have a few high probability setups than a bunch of setups that are just setups.
With that said if you want to try going to 2 timeframes and dropping the weekly I would suggest demoing it and seeing what happens. Afterall thats what a demo account is for to test tweaks to your overall system.
Another alternative would perhaps be to "reduce the entire methodology by one timeframe-unit? If it’s a valid method, might it be just as successful, and present considerably more trading opportunities, on a D1/H4/H1 basis rather than your current W1/D1/H4 basis?