One of the common trading mechanisms being used to access the market is the triple screen trading system. This system was invented by in 1985 by Dr. Alexander Elder and has been a popular among the traders as it gives a comprehensive picture of the market forces. It includes triple screens. The first screen takes into consideration the slopes of Histogram. If the sloped is going down, the bears will be in control. When the sloped is up, the bulls are in control. A change in tend is recorded easily recorded by any fluctuation in the histogram. The second screen takes into the consideration factors that may be working against the current trend. Depending upon the weekly trends shown by oscillators, one can take into considerations either the sell signals or buy signals. The oscillators that are used can be of Ray/Elder or force index. However one can also use Stochastic or Williams %R oscillators.
The third screen of the triple screen trading system does not involve any indicator or chart. It is the process through which sell or buy can happen once the first two screens clear t6he position of the market. This technique is also called as stop technique. Trailing stop techniques is activated if there is a decline in the oscillation and the weekly trend is up. Trader will be indicated to stop if the prices rally, if prices decline, the buy-out won’t be affected. The triple screens are an effective way to get a realistic feel of the market and that explains the reason of its popularity.