Trading is as simple as 1-2-3

Quoting hal7

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{image} Short GU +5 locked

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Quoting stu

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GU +5 hit price bounced off 123 fib extension previous bar and in demand zone {image}

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Quoting stu

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Hi Lem - trying to train my eye here & my question is not a specific 123 question, but relevant given that there's limited legs on some of the pullbacks we try to trade as part of 123. I'm just wondering which bar, for you, would constitute the likely indicator a bounce has occurred....I'm sortof eyeballing it generally and I just about got my pips with the above GU before price dropped again (despite being in heavy H1 & H4 demand). I've stuck an arrow at the bar that made me think it was bouncing back up. 1M chart {image}...

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Quoting lemercenaire

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{quote} Well waddayaknow...you have stumbled onto the same combination of ''add-ons'' that I myself use (Supply+Demand and Fibs). Funny that .

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Quoting lemercenaire

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{quote} As per general price action, I agree the arrow is the main bounce - however, for me, to go long (not necessarily as a 1-2-3 or whatever but just in general), the clue is in the two previous bars, so I would have looked to get in on the open of the arrowed bar. (Not sure if you were meaning that you would have done this also, or that you would have waited for that bar to form and then go long). Cable is tricky just now though, as you need to be aware of the fundamentals and what is happening away from the charts. Generally, you will be looking...

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Quoting stu

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{quote} I would have been waiting until the close of the arrowed bar, however I think I see now why you would have gone on the open i.e. you would have spotted in the previous bar that price was already rolling back from the bar that had created the lowest-low i.e the bar before my bar had tried to go lower, but failed and price was already halfway back up it when it closed and my arrowed bar opened?

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Quoting lemercenaire

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{quote} If you look at it, you have, on effect, a mini 1-2-3, however on top of that, you also have a collection of Opens-and-Closes all around the same level going back 6 bars and your Open + Close on the last one were almost level, with a Higher Low and Higher High. For those in the know, this is also known as a RAT Trade...where you would have entered on the price breaking the high of the orange bar in the bar that ended up green and arrowed. One thing to bear in mind as you begin to use S+D more and more, is that what most retail traders don't...

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Quoting stu

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{quote} Tnx Lem, yes, I think so i.e. they aren't waiting for price to hit the zone to fill load of orders.....the orders have already been put into play, filled, and price is already moving....ultimately coming into a S/D zone somewhere and, with the right orderflow, the zone can simply evaporate (just like UJ did on me yesterday morning)? It is therefore not good enough to trade of simply expecting a reaction to a zone - it must be traded based on price action once price gets into a zone.....yes I'm repeating you, but it[/highlight]...

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Quoting stu

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GU +5 hit price bounced off 123 fib extension previous bar and in demand zone {image}

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Quoting TooSlow

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{quote} None of this has anything to do with 1-2-3.

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Quoting Wizzlebizzle

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Obviously the trade took off after hitting the stoploss hehe. Two lessons learnt here: 1. Place your stopploss below the bid lol. 2. I did consider to re-enter, but I didn't as it is not part of my plan. It might have worked this time, but who know's about next time?

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Quoting lemercenaire

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{quote} Watch Cable today - New Bank of England bod is unleashed upon us this afternoon. Can't be any worse than the last guy, The Prince of Darkness himself, surely.

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