We think of trading in terms of opportunities. The market is in itself a sea of profit opportunities... However, in order to get access to some of these treasures a trader has to own an accurate map. Our map is what we call the "triple buffer zone" perspective, which is nothing more than a general framework designed to: 1) keep us focused upon the big picture and 2) allow us to ride both small and big waves, at ease and without fear of drowning.

The triple buffer zone is basically an adjustable trading range, which appears at the intersection of 3 major perspectives:

1) The long-term perspective (3 months - 1 year) - the largest and most important vector of our strategy. This is arguably our greatest edge, our guiding light, the high peak that allows us a broad view of the market. If trading is esentially a highly competitive probability game (and it is our deep conviction that it is indeed the case), the long term outlook is where possibilities turn into probabilities and deep knowledge of the market can really make a difference. To know where the market goes in long-term is to be able to make sound, educated investment decisions.

2) The mid-term perspective (1 week - 3 months) - this is where our view narrows down to the operative area of our charts. The land of the trading scenarios... The place where our trades take place, where we are continuously trying to identify safe areas where our 2 broad perspectives meet to create profit opportunities. Mid-term is our favorite trading timezone - neither too large (to make us lose many opportunities) nor too small (to deceive us by means of minor market noise).

3) The short-term perspective (1 day - 1 week) - once we identify a trade setup, we go down into the short-term charts and look for where we can best place our multiple entries. This is where we afford to take small profits from scalping, adjust our positions to fit our strict money management rules, fine-tune our trades by going in and out of the market as the opportunities arise. This is where we afford to be wrong, as we are already protected by the buffers mentioned above, which at this time are already working in our favor.

The triple buffer zone is where the 3 perspectives mentioned above converge to create what we consider to be some of the safest trading setups offered by the FOREX market. We call it a buffer zone because it is there to protect the trader on 3 different levels, which all have a particular level of importance. It is a shield that allows the trader to be wrong from time to time and still make consistent profits while living to trade another day.

Market Analysis / Designing our Triple Buffer Zone