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How to use the 123 strategy effectively

  • #81
  • Dec 1, 2010 3:55am Dec 1, 2010 3:55am
Quoting sidefx
...i've been trading 123s for a while and i've taken this EU 5M short (and EJ), however, I think Paulus would say that these do not qualify as there are not 2 candles between 1 and 2...i may be wrong but that's my understanding...Paulus?

edit: in fact EJ (5M) has just printed a confirmed 123 short based on Paulus' definition...and is now on the approach to the test/break of swing 2.
Hi sidefx,

would you please check for EU currency PA already move down from 04.11.2010 the 1st down candle is around 750 pips going down ...... now we will see the pullback from the harder support 1.3 before continue down the testing of the resistance is around point 1.32xx
enclosure the 15mtf chart the good set up of 123 is better look on the 250 level or 500 level ....

cheers
Attached Image (click to enlarge)
Click to Enlarge Name: eu 15mtf.gif Size: 22 KB
  • #82
  • Dec 1, 2010 4:02am Dec 1, 2010 4:02am
Quoting mrhb30jr
Hi sidefx,

would you please check for EU currency PA already move down from 04.11.2010 the 1st down candle is around 750 pips going down ...... now we will see the pullback from the harder support 1.3 before continue down the testing of the resistance is around point 1.32xx
enclosure the 15mtf chart the good set up of 123 is better look on the 250 level or 500 level ....

cheers
Thanks, appreciate the sentiment, however, i'm trading PA and these 123s off the 5min, where a short for 1:1 is probable despite longer term, higher tf trend. Many thanks for pointing this out though.
  • #83
  • Dec 1, 2010 4:14am Dec 1, 2010 4:14am
Quoting sidefx
Thanks, appreciate the sentiment, however, i'm trading PA and these 123s off the 5min, where a short for 1:1 is probable despite longer term, higher tf trend. Many thanks for pointing this out though.

Hi sidefx,

this is the simple rule of your 123s set up may be this should be share with your rule on 5M TF,

1. opening day is 22.00 gmt previous day of the line
2. 250 level and 500 level is good level to using 123s set up
3. RSI21 level 75 and 25 and mcad normal indicator for the overbought and oversold area...

good luck ....

cheers
  • #84
  • Edited 4:36am Dec 1, 2010 4:25am | Edited 4:36am
Quoting mrhb30jr
Hi sidefx,

this is the simple rule of your 123s set up may be this should be share with your rule on 5M TF,

1. opening day is 22.00 gmt previous day of the line
2. 250 level and 500 level is good level to using 123s set up
3. RSI21 level 75 and 25 and mcad normal indicator for the overbought and oversold area...

good luck ....

cheers
Many thanks - i'm stopped out on both EU & EJ shorts now, on what i've been using as 123 longs, but these are not in line with Paulus' definition. If i'd followed his def i wouldn't have been in these shorts in the first place...i think i'll be using the 2 candle rule between the 1-2 and 2-3 from now on! and thank you for sharing your ideas.
  • #85
  • Dec 1, 2010 4:35am Dec 1, 2010 4:35am
Quoting Paulus
1 count is in

grey box is my no trade zone its just the Asian session

P
so, given your long bias on the higher tfs are you still adjusting the count on the 5M for the short....i take it your still waiting for the short swing 1 at the moment on EU 5M?
  • #86
  • Dec 1, 2010 6:02am Dec 1, 2010 6:02am
Seems easier (for me at least) to count and obey the 2 candle rule by using HA candles
Attached Image (click to enlarge)
Click to Enlarge Name: 2010-12-01_2300HA_eu.png Size: 134 KB
We are all One. Be present. Be the Observer
  • #87
  • Edited 6:25am Dec 1, 2010 6:09am | Edited 6:25am
Quoting Iamfx
Seems easier (for me at least) to count and obey the 2 candle rule by using HA candles
Nice - EU and EJ short 123s (5M) looming.....again

Edit: EJ 123 short order cancelled. EU will probably follow too.
  • #88
  • Dec 1, 2010 8:05am Dec 1, 2010 8:05am
Quoting sidefx
...i've been trading 123s for a while and i've taken this EU 5M short (and EJ), however, I think Paulus would say that these do not qualify as there are not 2 candles between 1 and 2...i may be wrong but that's my understanding...Paulus?

edit: in fact EJ (5M) has just printed a confirmed 123 short based on Paulus' definition...and is now on the approach to the test/break of swing 2.

Hi Sorry been in and out on snow related things ..yes we need at least 2 candles between 1 and 2 and 2 and 3

P
  • #89
  • Dec 1, 2010 8:11am Dec 1, 2010 8:11am
Had a loser on the 5min today 27 pips...dont forget money management dont just trade 1 contract or 2 contracts because you feel lucky today work it out properly

but we have had a 1hour win for 75 pips
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 5min loss.gif Size: 19 KB
Click to Enlarge Name: 1hour win.gif Size: 23 KB
  • #90
  • Dec 1, 2010 8:29am Dec 1, 2010 8:29am
Quoting Paulus
Had a loser on the 5min today 27 pips...dont forget money management dont just trade 1 contract or 2 contracts because you feel lucky today work it out properly

but we have had a 1hour win for 75 pips
..if, after a losing trade, do you still alternate the direction bias, or are you now looking for another 5min 123 short?
  • #91
  • Dec 1, 2010 8:36am Dec 1, 2010 8:36am
yes looking for a 5min short as my SL was hit which means we have had a higher high than my original number 1 count..which means the trend continued up...so we look for the short again

P
  • #92
  • Dec 1, 2010 8:38am Dec 1, 2010 8:38am
Thanks Paulus.
  • #93
  • Dec 1, 2010 9:41am Dec 1, 2010 9:41am
Quoting Paulus
yes looking for a 5min short as my SL was hit which means we have had a higher high than my original number 1 count..which means the trend continued up...so we look for the short again

P
EU short playing out atm...not far off TP but likely to test supply again first, i guess.
  • #94
  • Dec 1, 2010 9:48am Dec 1, 2010 9:48am
hi side

yes another short here ...not that I go on such things but a better looking 123 shape...more reasonable amount of pips between high of 1 and 3

P
Attached Image (click to enlarge)
Click to Enlarge Name: 5min 2nd.gif Size: 20 KB
  • #95
  • Dec 1, 2010 10:10am Dec 1, 2010 10:10am
Quoting Paulus
hi side

yes another short here ...not that I go on such things but a better looking 123 shape...more reasonable amount of pips between high of 1 and 3

P
...and target hit (+39.9). I only risk 0.5% per trade on the 5min.
  • #96
  • Dec 1, 2010 10:13am Dec 1, 2010 10:13am
Nice wd ............. we have our tp now with 36 pips which was nice

P
Attached Image (click to enlarge)
Click to Enlarge Name: 5min 2nd tp hit.gif Size: 20 KB
  • #97
  • Edited 10:44am Dec 1, 2010 10:20am | Edited 10:44am
Quoting Paulus
Nice wd ............. we have our tp now with 36 pips which was nice

P
P, what time do you tend to stop trading the 5min on EU?

Edit:...apologies, found the answer in one of your earlier posts.
  • #98
  • Dec 1, 2010 10:48am Dec 1, 2010 10:48am
The answer should be US close .....

Not enough vol in the Asian mkts

P btw 1 in place on 1 hour and 5min
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1 in place 5min.gif Size: 19 KB
Click to Enlarge Name: 1 in place 1hr.gif Size: 22 KB
  • #99
  • Dec 1, 2010 11:15am Dec 1, 2010 11:15am
Quoting Paulus
Nice wd ............. we have our tp now with 36 pips which was nice

P
Good one! ...and not a moment too soon...


http://i13.photobucket.com/albums/a2...c120100007.jpg

Regards,

Jeff
  • #100
  • Dec 1, 2010 11:20am Dec 1, 2010 11:20am
yes jeff that just blew all our 1 counts out the window on the 1hour I now have it sitting on top of that spike.....doe !

Although the 1 count on the 5min is still valid and we now have a 2 count

Cheers

P
Attached Image (click to enlarge)
Click to Enlarge Name: 5min spike 2 count.gif Size: 18 KB
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