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Momentum and rotation
What mistake does each of the three screens rule out?
Triple screen · Elder Triple Screen
What it bets
Enter only when the higher-timeframe trend, a pullback on the lower timeframe, and a trigger price all agree.
How the rule is written
Alexander Elder's framework. The first screen uses a higher timeframe to judge the trend's direction, and it does not trade against that direction. The second screen uses an oscillator on a lower timeframe to wait for a pullback, rather than chasing the leg that has already run. The third screen enters on a trigger, such as a break of the prior bar. Leave any one screen out, and it is no longer the triple screen.
When it fails
Three screens that use three indicators fighting each other, with nothing written about which one can overrule which. That is only three signals stacked on top of each other.
Do not confuse it with
RSI(2) already contains a long trend plus a short reversion. The triple screen also requires a separate trigger price, and it states that two timeframes are in use. It is a procedure, not an indicator.