Triple Screen System (Elder) Strategy
Rules, Examples & Best EU Brokers · April 2026
Dr Alexander Elder's Triple Screen System filters trades through three independent timeframes to align trend, momentum, and timing. The premise: a trade that aligns with all three is institutional-grade; a trade that fails any one screen is a coin flip. Screen 1 sets the macro tide using a long-term trend indicator on a higher timeframe. Screen 2 finds the wave by demanding counter-tide pullbacks on the medium timeframe. Screen 3 captures the ripple by requiring breakout-momentum entry on the lowest timeframe. The system is rigorous, low-frequency, and rewards patience over activity — typical accounts produce 4-8 trades per month per pair.
Last verified: May 2026
Quick Answer
The Triple Screen System (Elder) strategy is a trend following system designed for Weekly + Daily + 1H charts. It delivers 1:2 minimum, often 1:5 to 1:10 on extended trends on average and is best suited for advanced traders who prefer fewer, higher-conviction trades over high-frequency systems. ideal for those building a long-term trading record on macro trend alignment rather than scalping or news trading..
Type
Trend Following
Difficulty
Advanced
Timeframe
Weekly + Daily + 1H
Risk-Reward
1:2 minimum
How This Strategy Works
Screen 1 (Tide): plot a 26-week MACD histogram on the weekly chart. Long bias if the histogram rises, short bias if it falls. Trade only in the direction of the tide. Screen 2 (Wave): drop to the daily chart and plot Stochastic (5,3,3). Look for counter-tide pullbacks — Stochastic above 70 in a bull tide (overbought, indicates a daily-chart correction) or below 30 in a bear tide (oversold, sets up the long re-entry). Screen 3 (Ripple): on the 1H chart, place a buy-stop above the previous day's high (long bias) or sell-stop below the previous day's low (short bias). The buy-stop only fills if 1H momentum confirms the directional move — this is the timing precision that filters out false-start trades. The combination of weekly-tide-bull + daily-pullback + 1H-breakout produces remarkably clean trends.
Suitable Instruments
Entry Rules
Follow these rules exactly, in order, before taking a position.
- 1
Screen 1: confirm the weekly MACD histogram is rising (long bias) or falling (short bias)
- 2
Screen 2: on the daily chart, wait for Stochastic to retrace into 70+ (in a bull tide) or 30- (in a bear tide)
- 3
Screen 3: on the 1H chart, place a buy-stop 5-10 pips above the previous-day high (long) or sell-stop below the low (short)
- 4
Cancel and replace the 1H pending order at the start of each new day if not filled
- 5
Re-confirm the weekly MACD direction once per week — flip bias if the histogram colour changes
- 6
Skip any setup where the 1H breakout coincides with a high-impact news release (NFP, FOMC, CPI)
Exit Rules
Pre-define your exit strategy before entry to remove emotional decision making.
- 1
First target: 2x the initial 1H stop distance for partial profit-taking
- 2
Trailing exit: 3-bar trailing low (longs) or 3-bar trailing high (shorts) on the 1H chart
- 3
Hard exit: weekly MACD histogram flips direction — close all positions in the old tide
- 4
Time exit: any position held more than 10 trading days without hitting first target
- 5
Stop-and-reverse permitted only if all three screens align in the new direction
Risk Management
Proper risk management is the difference between a profitable strategy and a losing one.
Stop Loss
Place the stop just beyond the 1H breakout candle low (longs) or high (shorts) — typically 15-30 pips on EUR/USD. This tight stop is feasible because Screens 1 and 2 already confirm the macro and medium-term context, so the 1H breakout is a high-conviction entry.
Take Profit
First target at 2R for partial profit. Trail the remainder using the 3-bar trailing-stop method on 1H to capture the full extent of the daily and weekly trend. Successful Triple Screen trades commonly run 5R to 10R when the weekly tide is strong.
Risk-Reward
1:2 minimum, often 1:5 to 1:10 on extended trends
Pros & Cons
Pros
- ✓Three independent filters dramatically reduce false-signal frequency
- ✓Forces alignment with the macro institutional flow on the weekly chart
- ✓Tight 1H stops give excellent reward-to-risk on every trade
- ✓Captures the full extent of major trends through the trailing-stop methodology
Cons
- ✗Requires patience — many days produce no qualifying setups
- ✗Three timeframes means more chart-switching and screen time per analysis cycle
- ✗Stochastic pullbacks can fail in extremely strong trends that never retrace far enough
- ✗Not suitable for new traders — multi-timeframe analysis demands solid charting fundamentals
Best For This Trader Type
Advanced traders who prefer fewer, higher-conviction trades over high-frequency systems. Ideal for those building a long-term trading record on macro trend alignment rather than scalping or news trading.
Recommended Brokers
EU-regulated brokers that best support the execution requirements of the Triple Screen System (Elder) strategy.
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Frequently Asked Questions
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ESMA Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFD Risk Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
This website is for informational purposes only. The content does not constitute investment advice. Trading leveraged products carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. EU retail leverage limits apply (ESMA): up to 30:1 on major FX pairs, 20:1 on minor FX, 20:1 on major indices, 10:1 on commodities, 5:1 on equities, 2:1 on crypto.