1-2-3 Method review request

There are a couple of good threads on variations of the 1-2-3 pattern.


http://www.forexfactory.com/showthread.php?t=62141

http://www.forexfactory.com/showthread.php?t=66749

I trade 1-2-3's reversals off the 4 hour charts. Currently in short GBP/USD, from 1.9562 and long Eur/Usd from 1.4577. I have just been trading them about a month but so far almost all have been winners.

The thing I noticed is you want to just be finishing a pretty good up trend if you're looking to short, and the opposite for a long. I also have been noticing that it's best if the formation forms over several bars, not just 3 or 4. The thing I'm having the hardest time with is deciding where to take profits. I usually just move stops up after each swing low but there might be a better way. Try to stay out of ranging markets, that is the killer of this system.

Might be a 1-2-3 top reversal on the Eur/Cad. I have sell order set at 1.4855 below the possible number 2, with stop at 1.4989. If price goes above 1.4985 before it breaks the 2, then the order will be canceled.