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andersenws's 1-2-3 thread

  • #1
  • First Post: Nov 26, 2006 3:30pm Nov 26, 2006 3:30pm
After experimenting for months with indicators, systems, and what-not, I came across some great price action setups, especially 1-2-3's, Ross Hooks, and the like. These are great setups, and I put this thread in the Beginner's Section becuase I think every beginner should learn price action and these kinds of setups.

First, I suggest reading The Law of Charts to get an overview of these setups. The purpose of this thread is to take tha material and post examples of these setups, either in the recent past, or currently forming.

My goal in this thread is to give back some of the knowledge I have taken from the Factory, and help beginners skip the indicator overload stage I went through.

So it begins,
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #2
  • Nov 26, 2006 3:31pm Nov 26, 2006 3:31pm
Here is an example of a 1-2-3 on the GBPUSD. Enjoy!

andersenws
Attached Image
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #3
  • Nov 26, 2006 3:53pm Nov 26, 2006 3:53pm
This is an example of a Ross Hook, which is a great entry tool if you miss the 1-2-3.

andersenws
Attached Image
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #4
  • Nov 26, 2006 3:58pm Nov 26, 2006 3:58pm
Quoting andersenws
This is an example of a Ross Hook, which is a great entry tool if you miss the 1-2-3.

andersenws
Perhaps you have already but it seems like you are running something similar to DiNapoli's CopOpXop. If you google it, I think you may get a deeper perspective.
  • #5
  • Edited 5:05pm Nov 26, 2006 4:05pm | Edited 5:05pm
Quoting Bemac
Perhaps you have already but it seems like you are running something similar to DiNapoli's CopOpXop. If you google it, I think you may get a deeper perspective.
Thanks, Bemac. I've noticed that good setups tend to get renamed and reused and passed around, which is good. If you'll look at the first chart, one could interpret it as an upside down head and shoulders, and it would've given almost the same gain. Good setups are good setups no matter what they're called.

Thanks,
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #6
  • Nov 26, 2006 5:01pm Nov 26, 2006 5:01pm
Quoting andersenws
If you'll look at the first chart, one could interpret it as an upside down head and shoulders,
Thanks,
andersenws
More commonly reffered to as an "Inverted" H&S.
  • #7
  • Nov 26, 2006 5:04pm Nov 26, 2006 5:04pm
I repeat myself.
Quoting andersenws
Good setups are good setups no matter what they're called.
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #8
  • Nov 26, 2006 5:09pm Nov 26, 2006 5:09pm
Quoting andersenws
I repeat myself.

andersenws
Exactly, but are you trying to convert, or get info? It's up to you.
  • #9
  • Nov 26, 2006 5:33pm Nov 26, 2006 5:33pm
Quoting Bemac
Exactly, but are you trying to convert, or get info? It's up to you.
I don't understand what you mean by "convert." Also, I'm not trying to start a flame with you, and I'm excited that you had read my thread.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #10
  • Nov 26, 2006 6:37pm Nov 26, 2006 6:37pm
Quoting andersenws
I don't understand what you mean by "convert." Also, I'm not trying to start a flame with you, and I'm excited that you had read my thread.

andersenws
First things first. I read no animosity into your post and let's get that clear right now.
It was not my intention to invoke thoughts of uncertainty but merely wondering IF you already understood CopOpXop and were expounding on it or perhaps you were not aware that COP existed.
Hence the question, Are you trying to Improve on it OR trying to convert {manipulate} it?
  • #11
  • Nov 26, 2006 6:58pm Nov 26, 2006 6:58pm
I was not aware of CopOpXop and a search on google for that only leads right back here to FF. All my knowledge on this subject is derived directly from "The Law of Charts" I linked to in the first post.

Thanks,
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #12
  • Nov 26, 2006 7:28pm Nov 26, 2006 7:28pm
Quoting andersenws
I was not aware of CopOpXop and a search on google for that only leads right back here to FF. All my knowledge on this subject is derived directly from "The Law of Charts" I linked to in the first post.

Thanks,
andersenws
Due to the recent changes in FF I cannot definatively say that the Link back to FF is the one to follow But I can say that I wrote {More accurately described as Modified code written by Claude} CopOpXop in VT code and it may give you somewhat of an explanation as to what it does..

In a nutshell;
1,2,3.
High, Low, Lower High.
Projection to the Downside.

Low, High, Higher Low.
Projection to the Upside.

Based in Fib Ratios, it basically takes the range of the first Run, High to Low or Low To High and considers that to be 100% of the Range. Then it plots that range from where the Run Ended {retracement point} to give you an idea of where it is going.

I know that is a lot to grasp so if you still have questions, fire away.
  • #13
  • Nov 26, 2006 8:44pm Nov 26, 2006 8:44pm
Hi,
I'll be happy to follow your thread, looking forward to it!
Take care,
Mateusz
  • #14
  • Nov 27, 2006 5:18pm Nov 27, 2006 5:18pm
Thanks for the support Mateusz.

I think I forgot to mention that all my charts will be Daily unless otherwise noted. I will sometimes look at the hourly, but nothing smaller.

Also, if you see any of these setups forming, feel free to post your own charts!

Ok, here is a EUR/AUD Ross Hook that broke yesterday. I would say this is a good setup although we are currently at a resistance point, the 38.2% of the fall from 1.7138 to 1.6434. I would not trade this until that resistance is broken.
Attached Image
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #15
  • Nov 28, 2006 5:51pm Nov 28, 2006 5:51pm
Quoting andersenws
Ok, here is a EUR/AUD Ross Hook that broke yesterday. I would say this is a good setup although we are currently at a resistance point, the 38.2% of the fall from 1.7138 to 1.6434. I would not trade this until that resistance is broken.
This is a perfect example of why it is crucial to keep S&R levels in mind at all times. The EUR/AUD peaked and then dropped, because it could not break and close above the resistance. Had that happened, it would have been a huge move.

andersenws

PS Might post some theories I'm working on right now regarding trend trading later. I'm still trying to make the rules as objective as possible.
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #16
  • Nov 28, 2006 9:57pm Nov 28, 2006 9:57pm
Quoting andersenws
This is a perfect example of why it is crucial to keep S&R levels in mind at all times. The EUR/AUD peaked and then dropped, because it could not break and close above the resistance. Had that happened, it would have been a huge move.

andersenws

PS Might post some theories I'm working on right now regarding trend trading later. I'm still trying to make the rules as objective as possible.
I was always interested in ross hooks and his work now that you are posting I will get out my copy and read it and follow along with you. This is very interesting price action setups, which I am just now starting to use more in my trading. Hope you keep posting.
  • #17
  • Nov 28, 2006 10:34pm Nov 28, 2006 10:34pm
Thanks for the support, bluemonkey.

I am wondering whether it will be more beneficial to post recent past examples of these setups (which would obviously be 100% accurate) or try to spot the setups as they form (which might be hard to do)?

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #18
  • Dec 4, 2006 8:48pm Dec 4, 2006 8:48pm
I am liking this too... finally something simple...

Are there other price set - ups too ???

And if there are, is there a place to go to see kind of a catalog of them ??
  • #19
  • Dec 4, 2006 8:52pm Dec 4, 2006 8:52pm
I am looking for some more 1-2-3's (I haven't been slacking). It's just that they are a breed of trend reversal patterns and we are in a solid trend right now. We should see some more in 1-2 weeks though.

andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
  • #20
  • Dec 4, 2006 8:56pm Dec 4, 2006 8:56pm
How about even old stuff ??? Especially GBP...

I cannot belive that only people who spend hours and hours studying charts etc... can make a profit in forex...

There must be something simpler... like seeing patterns... I like james 16 but man, I am a wroking man... for now I got to find something simple like easy patterns to spot...
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