ICT - On Elder Triple Screen

T

TheInnerCircleTrader

Well-Known Member
Hello FxGears.com

I'd like to thank Tansen and Jack for the welcome and invitation to the forum. I'm sure there will be something useful laid before you in these pages. So let's look at something I first discovered way back in the 90's while cutting my teeth as a "Trader".

Trading for a Living - The Book - The Impression

Dr. Alexander Elder was my first real teaching resource... and I recall opening the pages of this book with all the hopes and dreams of living up to the book's title... Trading For A Living.

However, possibly like you, when I read through it and it's presentation of Time Frames and "Top Down" analysis... I wasn't impressed. I guess my response was more accurately described as not inspired. Now, looking back as a mature technical Trader... I seen the fallacy in my thinking then.

I wanted the easy, the here it is... wash, rinse, repeat. It required some study, some work, some homework if you will. Does this sound like anyone you know?

If you have never read this book... please do yourself the extreme service and do so. Do not overlook the chapter on Psychology as this is a gem overlooked by most that read it. They do what I did as a neophyte... skipped to the Buy & Sell Signals. That is the wrong way to go folks... so wrong.


Triple Screen In A Nutshell

The general principle is to use three Time Frames in your analysis to develop a Trade Idea & subsequent Trade Signal.

For This Example:

Monthly - High Time Frame
Weekly - Mid Time Frame
Daily - Low Time Frame


The Monthly [High Time Frame] - Is referenced for strong Support and or Resistance levels. The trend or potential direction of this Time Frame will have an impact on the lower two Time Frames.

The Weekly [Mid Time Frame] - Used to determine the intermediate term trend and S&R levels to compliment the perspective gleaned from the Monthly.

The Daily [Low Time Frame] - This is where you do your work. The setups generate on this perspective. Dynamic levels of S&R and trend will be more refined in contrast to the two "higher" Time Frames.

Let's look at an example on the Cable [Gbp/Usd]:
 

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The Weekly To Daily Review...
 

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Naturally, one does not need an indicator as I included here, in the form of Stochastic. I added this to highlight how the Price Action if referred to initially then the use of indicators compliment the task of analysis... not leading it.

For exercise, try using this same pair for a sell setup using these same time frames and post what you discover. This is where I suggest all newbies begin their journey... it builds strong foundations to their development as a Price student then eventually a consistent Trader.

GLGT ;)
 
Lastly, you might find it insightful to study the Price action this past week in the Gbp/Usd pair and this level discussed here.

The more you know... :)
 
Great stuff.. The part that's a bit confusing me with this,is the I'm trading swing high in a swing low of a swing high.. :eek:
 
Hi ICT,

First of all, thank you for your contributions to the teaching of trading; I've learnt so much already since I began following last year.

Below is my attempt at finding a Cable sell set up based on the three time frame principle:

Monthly

j0EWQAS.png


Weekly

A strong bounce off the pre-determined resistance level.

vRodPJy.png


Daily

Optimal trade entry for a (roughly) 750 pip move.

ahMLcbb.png


Edit: The stochastic oscillator also compliments the sell set up:

wMIjkDp.png




-Tom
 
Good Job Tom...

Using your same levels on the High & Mid Time Frames... consider this as an additional setup. You may recall the ICT Pro Traders club calling this event then.

GLGT ;)
 

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Not sure how I missed that!

So it is definitely worthwhile keeping previous (and successful) OTE levels in mind when assessing the high and mid time frames, since they may well be revisited.

Thanks :)

Tom
 
Hey Mike,

Just stopping by to say Welcome to FXGears.com. We may seem like a hugely psychology focused forum but we welcome all mediums and methodologies as we all know how markets are always in a constant state of flux. We hope you enjoy your stay here and we will dedicate ourselves to the constant pursuit of providing you with optimum experiences and open critical discussions.

P.S I was in that downslide on GBP! 440! (missed an extra 200 :'()
 
Thanks for the link Mike this week.. fxgears.. well to be honest I never went back to BP after all the ICT flaming back at the beginning of the year.. hope to see a few more BP cast offs :) Sq
 
Hi Michael,

Looks like a lot of people here signed up just for you. Welcome to the Forum. Hope you enjoy your stay. Well actually, i hope you all enjoy your stay. :)

Looking forward to learning something new to me.

Regards,

Ramy3
 
You're welcome Piptricia.

Tansen we can't catch them all or all of the swings.

PAtrader let them have their fun.

Ramy3 thank you... hope you didn't mind me inviting my friends. :)


Talk again soon... GLGT
 
Hi ICT,

Is this an example of a triple screen sell setup forming on the Cable right now?

DAILY
ZiAinyl.png


1 HOUR
There has already been a rejection and OTE, but I missed it
A5f8G5R.png


15 MINUTE
Is it still valid? I wonder because there still hasn't been a lower low since the original OTE has formed and I am using the same swings...
T20Ej6z.png


Thanks for the help!

Slug
 
Hi Michael, great to have you kinda starting afresh on a new board, and I'm really excited to be able to learn from you from scratch. I hope that you can tailor your new videos slightly towards complete beginners (much like your most recent one), as I have a hard time catching up with your other market reviews.

I don't quite get where the entry to the trade would have been - on 16th July when price moved and bounced off the OTE levels or when it happened on 17th? What would have happened if price broke through 62% level and headed towards key S&R of 1.5030?

Lastly, can you explain how you identify key S/R levels? (In this case 1.4830 and 1.5030)

Thanks so much for your help and again I look forward to having you as a mentor!
 
Another great video,as usual!
Tnx for the great material ICT!

SlugFx,As i watched your picture i noticed the stochastic on 15m.
Just my two cents,but in my opinion,you shouldn't use a momentum indie in anything less then 1h chart,by my little experience it's only adds to the confusion,since its lagging and the 15m is noisy.Basically any momentum indie below a 1h chart that i tried to test (%r,fast stoch,macd,ADX)would only confuse,and would keept me out from some good entry's,since they were terribly lagging and faking.
Cheers,
Piper
 
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