Davis Double/Triple Screen Strategy (The Triple Screen / Multi-Timeframe)

Logic Explanation: This strategy is executed through “filters” across three different time periods. The larger time period sets the direction, the middle time period defines the trading range, and the smaller time period finds the entry point. You only take action when all three time periods resonate.

* Detailed Operations:

* First Screen (large time period, e.g., daily): Confirm the major trend. Look only at the MACD histogram; if the slope is upward, then only go long, and do not consider short positions.

* Second Screen (middle time period, e.g., 4 hours): Look for pullbacks. When the price falls back to the 60-day moving average or when RSI enters the oversold zone.

* Third Screen (small time period, e.g., 15 minutes): Find precise buy points. Wait for a bottom formation pattern to appear, or for a breakout above the high of the previous 15-minute K line.

Case Analysis:

At the daily level, BTC is in a bull market (MACD trending upward).

* Operation: On the 4-hour level, a sweep pullback of 5% occurs. You wait until a “long lower shadow” or a “bullish engulfing” pattern appears on the 15-minute level, and then you enter decisively.

* Result: This strategy greatly reduces the risk of blindly catching bottoms, because you are always trading in line with the prevailing trend.
$ETH