Predator FX58- HTF/MTF 123

Hope you found the timeframe. H1

We now proceed to the next trade opportunity that exist:

Long Trades

The long trades found in this system is an upward reversal made after following the 1-2-3 pattern from a previous downtrend. The downtrend finds strong support or rejection at point #1, which then reverses upwards to find the first resistance at point 2 in the 123 pattern. Point 3 is a 38.2%, 50% or 61.8% retracement of the line traced from #1 to #2. Point 3 is at a higher horizontal level than point #1. From point #3, price reverses upwards, breaking through the resistance formed at #2. The long trade is actually initiated at that point where this level is now broken. So all the preschool mind trader needs to be doing is singing abc and looking out for the 1-2-3 pattern formation which will form prior to the trading point entry. This entry may be made as a market order or pending order.

When the trader allows for formation of points 1, 2 and 3, to be drawn by the indicator automatically. The trader will then go long when the resistance line is broken by the upward moving reversal price action. However the trader must be aware that at different times after the candle has closed above the resistance line, the price action may attempt to pullback to the broken resistance. When this happens, enter long at that point. Other options may be to set a Limit Buy order which will work fine to pick up trades in similar scenarios like this-best price.

1-2-3 Reversal Long Trade Setup

Now for that Gbp/Usd 123 trade. I am in a previous buy trade, now it is looking like a sell trade reversal at present on H1.

Audjpy Possible trades that could have been taken...from m30 to daily timeframe.

I have an E.A. that should be some how linked to 123 pattern v.6, Warning this expert advisor has Errors Which needs to be ironed out.

I know someone will be there sent to help. Just P.M. I will be able to send it to your email. MQL FILE. To many snatchers exist.

Its a very robust Expert Advisor to say the least.

Lets talk about one of the most important aspects of the trading system:

Stop Loss

The horizontal line at the #2 point on the 123 indicator is the key line of reference in this case. The trader should exercise proper placement of the account protection other wise known as stop loss placement a few pips away:

1. Below the line in relations to long trade orders
2. Above the line in cases of sell trade orders, these placements will work to be safe enough.

This reference line is usually a strong level of support or resistance and will usually hold most of the time a trade opportunity is presented by the indicator. Remember to observe the trend or if there if a trend change, being the break of a trendline or major moving average.

As for another important input for trade orders is the

Take Profit

The Take Profit is usually left at the discretion of the trader, especially for the fact that there are many options with this system from 138.2, 161.8, 261.8 and 423.6 fibs extension levels. However, this must be set according to some very logical, never go against the set guidelines. For instance, a trader may decide to set their TP as 2:1 double or 3:1 triple the stop loss, or may decide to use a trailing stop after a required or initial target has been accomplished in terms of pips in profit, then and only thereafter does the trailing stop is activated.

Conclusion

The 1-2-3 reversal strategy must be practiced on a demo platform prior to trading live, as previous success is not a guarantee for future performance.
Please note well, that careful attention must be paid to the proper use of the indicator and best timeframes of m30/H1 and above be used for best results. The Fibonacci tool embedded in the indicator should experience a pullback to the levels of 38.2, 50 or 61.8 retracement level, in order to experience higher probability towards having a successful trading experience.
There is nothing wrong with looking for perfectly formed 123 patterns and waiting for the break of the #3 point.

Cheers to you and your trading journey.

Eurusd Daily Example Then and Now.

USDCAD example from May, 15th until now. 600+ pips.

Thank You for this! I have always liked the 123 method a great deal. I have a question. In robdee's thread, he noted that the indicator based on Zig-Zag repainted. Will this edition also repaint? I suspect latest signal would be valid anyway. Pippo

I believe these points line up with fractals too, so in that case I don't think so. M.H.O.

Can some one create an e.a. to trade the arrows from the V.7 update.
I can give directional bias for the possibility of more profitability but a start would be good though, so updates can come along the way. Even for scalping purposes.

Projection and outlook for the safe havens.
Where will it go?
USDjpy is practically a replical of the dollar index.

Good evening, Ea gives alerts to begin with.

Une explicacion en Francais s'il vous plait... Merci

Je récupère les objets du tableau . et donne une alerte.
j'ai essayé avec icustom et apres faire un backtest mais indicateur est trop lourd.

"...to begin with," What do you mean here?

My my, you are quick. Oh my. I will check it on several pairs later at work.
How is it for you? 00 my I am excited! Do you need directional bias or not?
Finally Is it trading on the arrows with the different take profits?
N.b. I can only ask since I am away from p.c.

There are no inputs, what kind of alerts, Fifi743 if i may ask?

CadJpy-Nice Entry...

Gold Nice Entry...