1 2 3 Strategy explained

OK...I am loving this, I am pulling out charts on all sorts of time frames and training my eyes to see this 123 pattern

It would be great if you could show some charts on higher time frames...I am seeing that on higher time frames this could be very profitable

The lower time frames are great for entries

Very much appreciating your contribution here.

PGPB

Here a 15min chart of eur, with 123 patterns of 2 level (violet and blue), notice how the countertrend 123 patterns usually give low profit (and overall bad r:r ratio), while the trend direction 123 patterns work better!
In the next post i'll put some 123 trend-direction fail patterns and explain WHY they may fail even if during the trend.
What i'm working for is trying to study a way to understand how to know the probability of fail, before it happen.

Here is a indicator made by funyoo.

Tunera,
I was thinking diply in your fractal geometry theory and do not let me sleep during some days..is a very smart view or an other diferent form to see the same that all are looking to.
Following this thougths, I remember that fractals is the base of zigzag indicator, so I think why not use that indicator to show up what are the fractals that lead our market moment..?
In that way, I used a simple point zigzag instead of line zigzag to clearfy the chart and look what happend.....
First can see the most importants points in the see, but the most important information is WHERE IS THE NEXT FRACTAL....whit that information in my mind switch 1hour chart and wuld find the same structure...if is ok...switch 4 hour chart...and must find the same direction to the next fractal or zigzag point.
I don't know if I'm so far to the reality and loose my mind..or not?
I'm not zigzag lover, but think that is a good support and can use it to find the next target.
Of course that zigzag repaint, but once the price breech point 2....the structure is confirmed by it self,
To find the target..we wait the zigzag put the next turning point....of course we'll never know that will be the next turning point but if is not in that candle...my be the next...but during the jorney...we are relaxed waiting that signal.
I'm agree whit Teb that RSI is a good indicator to find the way...only one diferent in the period choise...think in each chart, the real weigh over our price is signed by the last 40 bars, so 40 bars we have to analyce to find..what is happening, in my RSI I use 40 period, that's it.
Well this are simple thougths I put in the Tunera hands, are not cience but are supported by hundreds of hours to screen observation.
Hope this help the Tuneras idea to find a simple confirmation.
Best regards and good trade to all.
Pop.

First chart= 15 min
Second chart= 1 hour
Third chart= 4 hour

If you check this three signals, switching the charts, you'll see all are confirmed in 15M, 1H and 4H and follow the above idea.

The RSI, is only to see in 15M chart, it doen't matter what happend in the RSI 1H and 4H.

I forgot...RSI setings are = 40, 50, 50.

Best to all.

Pop.

Great, it is great!
I'm very happy to read such posts, you are getting the core of the system.. call it fractal geometry call it MTF, the point we all are going is that there are precise situations where a 1-2-3 patter have a strong winning probability and the risk-reward ratio is very huge, taking the 1-2-3 pattern that happen soon after a impulse move is the best way to be profitables, i must say that most of my losses are because i'm still not perfect and i take soo many signals that are simply not very good in quality (countertrend, not the first retrace after the impulse wave, overbought/oversold etc.).

However, you made a great work, using the zigzag is a good way to define supports-resistances, and looking on more timeframes is a good way to get the feel of the market fractal geometry and know in which phase of each fractal/tf we are, you got it!

Let's try to post some good trades (during or after the trade has been taken) and put it in the thread to build many examples, i think this is a powerful way of trading, the market contract-expanse continiously, getting in the trade when the contract phase end and the expanse phase start is our mission.

Here's an image about your audusd15min image, the first 1-2-3 pattern you've put was actually coming soon after an impulse wave, the impulse wave was the wave A-B of an AB=CD correction (elliot wave rulez), so knowing this we had a good probability target on 100% fibo expansion or just using a channel trendline.
This kind of target calculation is good only for patterns happening on a retrace (AB=CD).

As you see in the image the downwave started with the break of an uptrend-support, that one was a great signal!
And the last one also (the buy pattern), a trend-resume pattern (huge r:r), while the middle one i would not had taken, but it was profitable too eheh

Tunera,
thank you for your words, I really appreciatte your work and I only want to empower you to keep going.
I agree whit you that the second trade, instead had been proftiable I would not take it because just a quick look 1H chart and 4H chart I would see is countertrend and that's not good.
I really don't beleave in indicators or in strictly process....life is that, never loose THE BIG PICTURE, and try to be objective..(instead no alwys can..but do my best, as eveybody).
Think that you find something important, 123 style or MW, whatever you name it...is a very good way to read the market, but sometimes go well and sometimes..no.
So, when I read your hipotesis....understud that there where something I never saw before.....instead a system or style exist behind that or a structured process, if we don't loose the big picture, think that this is a very good trade opcion.
Use RSI or ZIGZAG or whatever...it doesn't matter, the real thing is the estructure behind de market and if we use one or other to let the market show us what is doing and where is going....it's ok, we are fine.
Finally, you had been had a very smart view of the market, congratulations and keep going.
Of course I'll post here my trades if you agree, is the only thing I do all the day, this is a very sirious business for me.
Well, go ahead...we are whit you.
The best,
Pop.

Hello, it's soo many days from the last post on this thread.

I what to thank popeye for your last post, it was very good and very intelligent, i also enjoy on read that this is a very serious business for you, the same is true for me!

Well, in October my trading style deviated a little from the classic 1-2-3 strategy, where we wait for the breakout of point2 to enter the trade.

What i do now (and what i've done for years before trade strictly the 1-2-3 strategy) is just trade the old style accumulation/distribution, that is still very connected to our 1-2-3 style.

Basically it work this way: we accumulate positions in the wave that go from point 2 to point 3, and when price break the point2 there is already a good floating profit, let it run or close it is the question, but there are different ways to understand if and where to exit from the market.

Looks simple..
It is, and it is not, of course

Happy trading

Hi Tunera,

Perhaps you will sharing more of your trading experiences with us. I found good lesson here.

Sam

great words. juz to add one more sentence if you don't mind: must accept the fact that losing is a part of the process..... cheers.

Eheh thanks for the suggestion, it is a truth, it is a fact:
A great trader can be right most of the time, but nobody is right ALL the time!

This month i still havn't a losing trade, so looking at this big above truth i should start "worrying" about this second half of this month a loss or a string of losses may be expected
Happy weekend to everybody!

Can you post trades real time please so we can learn from it better.?
It is easy to see it afterwards.
This is my view on EU.
Its being stopped by the median pitchfork line but there still is some up space to 1.444 where there this image is about.
I am not trading now but am waiting till downtrend starts.
I want to use 123 strategy to make a grid of short positions.

Hi, thanks for sharing this indicator to trade but is that possible to create any EA to trade using this 1,2,3 indicators.

Thanks.

I am trying this trategy.
What do you think of this pending trade?

Here is another pending order i placed.
I wonder what you think.

Hi, thanks for the nice images, i would not take any of your trades right now.

EURJPY:
EURJPY is in a uptrend, currently on retrace mode (the 1-2-3sell setup has happened in the 115 area), selling now at your entry point CAN (can, i'm not 100% sure of course) mean sell at the low of a retrace, it's a little bit riskious.
I see instead a nice 1-2-3 buy setup (image attached).

About eurusd it is good the idea of buy, but the 2° point has not yet estabilished, the little resistance we've seen on the open of the market is included in the wave that go to form point1, and it's not yet finished so again buying in your point could mean buy at point2 (and then price will reverse and go down to form point3 and eventually continue the downmove), i will look for 1-2-3 sell patterns on the 15min chart when price will break 1.4000 area.

Wish to be of help, tnx

Insted of trading some people sould be teaching how to BS big time.

Trading the market is not easy and is almost impossible to "teach" like you say, it's like go with bycicle, you can talk about it and teach by words for hours or years but the only way a guy can learn being stable on bycicle and not loose the equilibrium is just working on it by his/herself, i like some criticisms, it's a normal human thing, however in this business the only teacher is the market and all the traders of the world are nothing but students, and it doesn't exist a simple strategy that work all the time.

I just share my ideas and my opinions, who don't like them is free to continue his forum-reading on other threads, thank you for your post.

Thank you for your reply.
I am long on USD now because of other indicators point that direction.
You are absolutely right, i should look for entries on lower timeframes..
Although EURJPY is in an uptrend in these charts, its in a downtrend on the daily.
It made a HH but not a HL.
So i am bearish but looking for the right entry.