Market trend
According to the analysts who observe Price movements through history data, in general market trend following 3 types, namely the long-term trend with a span of several years, the medium-term trend with a span of several months and the trend of the minor, or short-term trend for periods of less than a month. Robert Rhea, a technical analyst, named to the 3 types of the trend with 'ups and downs' (tides) for the long-term trend, 'wave' (waves) for the medium-term trend and the 'ripple' (ripples) for short-term trend.
In the last century trading by following the 'ups and downs' long-term trend is the best strategy, and if traders tend to want out of the market, then you should follow the 'wave' medium-term trend, while trading by following the 'ripple' short-term trend is rarely done . However, when the number of traders is rapidly increasing and becoming more complex market, trading is mostly done by following the mid-term trends and short-term, but with the time scale (time frame) different.
As has been reviewed in the previous section, the triple screen trading system is the main time frame for intermediate time frames, with a long term time frame for a higher level and short term time frame for the lower level. If you plan for the possibility to hold the position for a few days or weeks, then you should concentrate on the daily time frame. Long term time frame you are weekly and short term time frame is hourly. If you want to hold the position of a maximum of one hour, the concentration of the 10-minute time frame with the long term and short term hourly at 2-minute time frame.
The first screen in the Triple screen depicts the ups and downs of the market (market tide)
Ebb and flow of a long-term trend is the basis for making trading decisions. First of all traders should analyze long-term time frame, which is one level above the benchmark time frame. Long term time frame is the first screen of the triple screen system. If you are trading based on the daily, then try to obtain a 5-day time frame, and begin to analyze weekly time frame.
Long-term trends such as can be seen from the angle (slope) MACD indicator. If an angle towards the top, it tends to be a bullish market and a sign to buy, otherwise if the angle towards the bottom should you think to open a sell position. In addition to the weekly MACD, can also be used exponential moving average (ema) with period 13 on the weekly time frame.
By using figurative Robert Rhea, if the long-term trend is 'pairs', in this case the weekly trend is bullish, then the momentum to enter the market is when the wave trend on the time frame of the benchmark (in this case 5-day) is down, and vice versa for long-term trends that are 'receding' or bearish. To see this momentum oscillator can be used indicator.
Those bout Triple Screen Trading System Part 2 and you can read
