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Trading is as simple as 1-2-3

Quoting TooSlow
Would each of you traders please do me a small favor this week... Please post a chart of a LOSING 1-2-3 trade and say whether or not you followed the 1-2-3 rules. Thank you.
TS, with strict adherence to the rules, I had one Friday with UJ. Maybe though not exactly representative given that it was Friday afternoon and all the recent trade/tariff discussions.
Nonetheless, I entered long at the open of bar 0 (the bar to the right of the arrow bar) after an unsuccessful test of the arrow bar new daily low. I set the SL a couple of pips below the new daily low.
It never quite attained my interim TP level of +5, and then some 44 minutes later was stopped out for -6.4
Interesting to note that a Hal special entry on the bar that took me out would have made it all, plus some, back. Even a standard entry on the bar after that one would have reduced the loss.
but...
These -6.4 were more than offset by two separate 123 shorts taken earlier on AU for +10.7

Thanks for starting your two highly valuable threads, and to all your regular contributors. After reading nearly 1000 pages between the two, I've learned much.
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Quoting lemercenaire
{quote} One thing to look for in "same bar" entries, is that (as you notice here) price will more often than not retrace back to around the 50% of the entry bar, then turn and continue on in the direction of the original trade. I am sure you can figure out on your own how you can make use of that information. Also, just because you have bagged on your Hal-Special Same-Bar entry, doesn't mean you have to ignore and not take the "Standard" entry. All sorts of ways for the clever trader to maximise...
Yes Lem, I agree with you. As I was already in a trade I did not bother with the standard entry but it would have paid off as well

Maybe you can expand on the 50% retrace concept for all the members of this thread.
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Long EU +5 locked same bar
Quoting kaza007
{quote} Yes Lem, I agree with you. As I was already in a trade I did not bother with the standard entry but it would have paid off as well Maybe you can expand on the 50% retrace concept for all the members of this thread.
No worries. I'll try and post some more detail on this later.
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Short GU +5 locked By the rules. I was going to take the trade earlier as it was bouncing around the open, technically I could have entered. I waited for it to move up 4 pips and then back through. Depending on price conditions which are not always that easy to read, often times these moves are just a small pull back as the pair will shoot to a new high. And then you may see that move keep going up and up all session.
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Short GJ +5 locked Took a bit longer to develop but finally got there. Looks like it still may be heading higher.
Enter here was at the open of H1(0) ?
If yes: why ?

(... looking for my AHA moment about the missing retest of the high ... )
Thanks
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Quoting Whenever
Enter here was at the open of H1(0) ? If yes: why ? (... looking for my AHA moment about the missing retest of the high ... ) Thanks {image}
Not sure what your asking here, but this chart shows and open that did not test the previous hour high, it went straight down from there. I have taken these trades without that restest and gotten pips. I have also lost on the same type of set up, as it moved down a pip and then shot back up to a new high. I have never found a sure formula in these set ups. However making many trades is an excellent teacher by experince. Especially hot stove lessons....
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Here's a long CF I got in last hour. Looks like a loser but had not quite stopped me out yet. I had the new low from the previous hour. It moved all the way down to that low and then back up to eclipse the open. That was my entry and it got about 1 pip. My stop is set at 0.9916. Generally these good trades, but nothing is 100% not surprisingly.

Update: This trade did end up getting stopped out after making a push back up but falling short of +5. Good news was my earlier EU long kept going up to +59
Quoting hal7
{quote} Not sure what your asking here, but this chart shows and open that did not test the previous hour high, it went straight down from there. I have taken these trades without that restest and gotten pips. I have also lost on the same type of set up, as it moved down a pip and then shot back up to a new high. I have never found a sure formula in these set ups. However making many trades is an excellent teacher by experince. Especially hot stove lessons....
Thanks Hal7,

that's correct: the question was (is) about either entering the trade even without any kind of retest or not.
Strictly applying the rules I sould not consider that trade as valid, but I think that probably - especially after a concrete rejection of the highest price - the best to do is to take the trade anyway and let it run the way it has to.

Will evaluate myself, as I think this point to be somehow subjective.

Thank you for your reply.
Quoting lemercenaire
{quote} No worries. I'll try and post some more detail on this later.
Right, after a quick scan through the charts for an example, I found a half-decent one from today.

There's actually no real mystery to it, it's all about stops being mopped up but so long as we are aware of what can be going on, we can stay safe and then profit from it.

As you can see, we got the new High set. We then get a drop away on the open of the next bar.

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In fact, his here is now actually a perfect example, as it answers the other typical question of what happens if no test.

Price drops all the way down and then bounces.

We now watch this bounce to see what price is going to do around the 50-Fib level.

What it does, is turn again and drop back in the original direction of the first entry. (Price can sometimes come all the way back to the entry level but in this case, it doesn't.)

Now, to look at this in more detail, we would be managing this move on the m15 or m5 charts, as it is not the price itself we are looking at but the candles / bars.

We are looking for price to test but not close over the 50-Fib.

If the bar then remains below the level, we can enter at the best price we can get. Look for momentum on the m1 or m5 to get an entry.

Here you can see that the bars did not close above the 50-Fib...

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Then dropping it to the m5 gives us even more confirmation. No close over...

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Anyway, as noted before, this is not part of the method as such, simply an indication of the various ways that profit can be maximised using additional techniques, as one gains experience.
FTSE 100 trade that's been rumbling away through the day. I thought I had mentioned this here at the time it kicked off but it must have been on one of the other threads.

I didn't actually take this as a 1-2-3 as such but as a rebound from the Supply Zone but that doesn't make it any less of a 1-2-3...

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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
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Short CF +5 locked same bar. You can see how my long trade on this same CF yesterday panned out. Good thing I had my stop in place. That one was by the rules. I do actually use another strategy with these set ups where I take basically the opposite approach and go the direction those new highs and lows form. Yesterday it was a smasher because strong trends in one direction were in play. I have similar set ups running today particularly against the JY derived from the news event.
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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
Nearly at half of the reading journey ( around page 140 at the moment )...

I have a question for the more experienced traders of this methodology:

How do you handle the situation when price tests the previous new daily Hi / Lo, fails to break it, comes back for 1 or 2 pips over the opening price...and then comes back again and breaks the Hi / Lo ?

I am sure this happened zillions of times to all of you and am sure I will find this question during the rest of the journey too, but would be grateful to may have your opinion about it.

Even the answer " it would just be a loss, nothing more, nothing less " is a well accepted one.
Just to know how you handle it.

Thank you

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Quoting lemercenaire
{quote} Right, after a quick scan through the charts for an example, I found a half-decent one from today. There's actually no real mystery to it, it's all about stops being mopped up but so long as we are aware of what can be going on, we can stay safe and then profit from it. As you can see, we got the new High set. We then get a drop away on the open of the next bar. {image} In fact, his here is now actually a perfect example, as it answers the other typical question of what happens if no test. Price drops all the way down and then bounces. We...
Thank you so much for sharing this Lem. I really appreciate the more experienced traders sharing these sort of "tidbits" with the rest of us. Definitely something to keep an eye on to maximise the pips.
Good morning, all.

My Monster set-up has thrown all sorts of goodies into the mix today, including this sweet-as-a-nut 1-2-3...

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Long AU +5 locked
Quoting Whenever
Nearly at half of the reading journey ( around page 140 at the moment )... I have a question for the more experienced traders of this methodology: How do you handle the situation when price tests the previous new daily Hi / Lo, fails to break it, comes back for 1 or 2 pips over the opening price...and then comes back again and breaks the Hi / Lo ? I am sure this happened zillions of times to all of you and am sure I will find this question during the rest of the journey too, but would be grateful to may have your opinion about it. Even the answer...
I don't have any particular rules or applications of testing the previous day high or low. My main focus is looking to stay out of the way of one way trains that pause at crossings and continue on their way. I have found that to be more art than science.
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