The theory behind the triple screen trading system is that a single indicator cannot predict and analyze the market situation alone, so multiple indicators should be used. The system has become one of the reliable trading strategies, which allows traders to reduce the risk of loss.

Triple filtering simply refers to the three steps of judging the position:

Step 1: Analyze the market trend and establish the trading deviation.

Step 2: Use technical indicators to identify price retracement.

Step 3: use short-term breakthroughs to find opportunities to enter the market.

The analysis period of the first filter is longer than your trading period. For example, if you trade on a daily chart, the first filter can be analyzed on a weekly chart. The main function of the first filter is to analyze market trends and establish trading deviations. If the market is on the rise, then we only look for bullish signals; If the market is in a downward trend, we only look for short signals. This step helps us filter out some trading signals.

The second filter needs to reduce the time period. If the first filter uses a weekly chart, the layer can use a daily chart. It is necessary to identify the price correction with the help of shock indicators and find better trading opportunities.

The third filter needs to reduce the time period again, for example, using a 4h chart. The main function of this filter is to enter the market. When the trend of the third floor is consistent with that of the first floor, you can enter the market for trading. It is usually used to determine the price breakthrough in advance with the help of shock indicators.