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How to use the 123 strategy effectively

  • #201
  • Dec 9, 2010 12:09pm Dec 9, 2010 12:09pm
H1
I am entry short for formation 123 on H1
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdh1.gif Size: 19 KB


m5
long for another 123 on m5 with double lot of short
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm5.gif Size: 45 KB


At this point let me know if long 123 on m5 cancel 123 short on h1,
Paulus what do you think?
  • #202
  • Dec 9, 2010 12:29pm Dec 9, 2010 12:29pm
Quoting Paulus
ok im long gu from 1.5742
TP is 1.5771

I have a pending order on EU to go long at 1.3227

So far today EU 31+25
GU 34+24+30

P
out with 28 on gu and in a long with eu

P
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gu ht.gif Size: 20 KB
Click to Enlarge Name: ue in.gif Size: 23 KB
  • #203
  • Dec 9, 2010 12:32pm Dec 9, 2010 12:32pm
Quoting luipie
H1
I am entry short for formation 123 on H1
Attachment

m5
long for another 123 on m5 with double lot of short
Attachment

At this point let me know if long 123 on m5 cancel 123 short on h1,
Paulus what do you think?
with you on the 5min but on the 1hour you only have 1 candle from 2-3 I need at least 2 so its an invalid signal for me..if you dont apply this filter you will be taking loads of 1 bar formation signals

P
  • #204
  • Dec 9, 2010 12:34pm Dec 9, 2010 12:34pm
Quoting ForexSV
Paulus... how long are u trading this system?

on an off around a year along side other things..I started the 123 about the same time i started looking at wolf waves..another price only way of trading..The rules I have work for me ...without a signal rule yoy wont know what 123 to take and what ones to leave

P
  • #205
  • Dec 9, 2010 12:54pm Dec 9, 2010 12:54pm
Quoting Paulus
with you on the 5min but on the 1hour you only have 1 candle from 2-3 I need at least 2 so its an invalid signal for me..if you dont apply this filter you will be taking loads of 1 bar formation signals

P
look here
Attached Image (click to enlarge)
Click to Enlarge Name: ue in.gif Size: 26 KB


P
  • #206
  • Dec 9, 2010 1:03pm Dec 9, 2010 1:03pm
Quoting luipie
look here
Attachment

P
yes your right only 1 bar .......if I spot them before i trade them I dont trade them..sorry even mine was invalid but luckily it went ok...

Im not perfect ..almost ................but not quite

No indicator for this no ea for this therefore human brain slips some times

p
  • #207
  • Edited 2:58am Dec 10, 2010 1:53am | Edited 2:58am
Hi Paulus

A quick question for you.

So, you see your HL or LH, you open the trade and set your targets. However, unknown to you it is a ranging day - how do you know when to exit? Do you wait for your sl to be hit or do you use another signal?

I know this isn't an exact science but I am interested in hearing your views on this. I am trying to use some MA's to see if a price crossover will get you out of dodgy positions in a timely fashion. Will post my findings when I have them.

Also, do you have a mental time limit for the trade to work? If price hesitates for too long I am much inclined to close the trade.

Best wishes
  • #208
  • Dec 10, 2010 4:15am Dec 10, 2010 4:15am
Currently watching 5M EU for the break short, also looking for short on GU but a long way off yet.
Attached Image (click to enlarge)
Click to Enlarge Name: 10th Dec EU S1.PNG Size: 35 KB
  • #209
  • Edited 5:01am Dec 10, 2010 4:45am | Edited 5:01am
...GU looks the more likely candidate to short now, we'll see.

edit: bearish, toppy hrly candle forming too at the moment...
edit: hrly close = doji/indecision...
Attached Image (click to enlarge)
Click to Enlarge Name: 10th Dec GU S1.PNG Size: 39 KB
  • #210
  • Dec 10, 2010 7:56am Dec 10, 2010 7:56am
Quoting sidefx
...GU looks the more likely candidate to short now, we'll see.
...+36 taken on the GU short...and EU still running.

Edit: +20 taken on EU short.
  • #211
  • Dec 10, 2010 8:08am Dec 10, 2010 8:08am
sidefx ,what makes you exit at that price? (GU +36)

thanks.
  • #212
  • Dec 10, 2010 8:13am Dec 10, 2010 8:13am
Quoting ForexSV
sidefx ,what makes you exit at that price? (GU +36)

thanks.
FSV, monthly pivot @ 5780 - 5 away from the 1:1 target - that'll do for me ....the weekly and monthly pivots are well worth keeping an eye on intraday.
  • #213
  • Dec 10, 2010 10:01am Dec 10, 2010 10:01am
i had +38 on GU and +30 on EU only 2 trades so far today both short

I have 1 in place on both which means looking for longs

P
  • #214
  • Dec 10, 2010 10:06am Dec 10, 2010 10:06am
Quoting Delite
Hi Paulus

A quick question for you.

So, you see your HL or LH, you open the trade and set your targets....
Hi

Once im in a trade I never close out early or carry out analysis on my chart..my trading has to be black and white and rules based

I have only 2 options once im in a trade I lose when my fixed SL is hit I win when my fixed TP is hit

On a short my sl is 1 pip above 1 my TP is the distance from this to 2...projected down giving RR of 1:1
Visa versa for longs

I have no time limit I start my normal time if I go long 1min after and the day ranges I will stay in that trade all day as long as my TP and SL is not hit I never reverse...too subjective.

When US closes if Im in profit i often close

cheers

P
  • #215
  • Dec 10, 2010 10:17am Dec 10, 2010 10:17am
I now have a 2 in place on both ....just..but for a 3 I need a pull back to the 61.8 level and more than 1 candle in between 2 and 3 count
Attached Image (click to enlarge)
Click to Enlarge Name: Fri x2.jpg Size: 89 KB
  • #216
  • Dec 10, 2010 10:20am Dec 10, 2010 10:20am
Quoting Paulus
i had +38 on GU and +30 on EU only 2 trades so far today both short

I have 1 in place on both which means looking for longs

P
Paulus


What about this 123?
(no good because only one bar between 2 and 3?)

PGPB
Attached Image
  • #217
  • Dec 10, 2010 10:35am Dec 10, 2010 10:35am
Quoting pgpb
Paulus


What about this 123?
(no good because only one bar between 2 and 3?)

PGPB

Yes thats right..you can take them but if you do you end up taking loads of trades.. we need 3 definite candles the 1 2 and 3 count if we just add 1 candle in between each then that gives us 5 candles for a formation that use 3 !

way to tight..

I need at least 2 candles in between each count and the rally or pull back to the 61.8 level

cheers

P
  • #218
  • Dec 10, 2010 11:04am Dec 10, 2010 11:04am
Quoting Paulus
I need at least 2 candles in between each count and the rally or pull back to the 61.8 level
P
Paulus... why did you pick level 61 for pull back...and not let say 38 or 50 ? why is 61 more important ?

thanks.
  • #219
  • Dec 10, 2010 11:37am Dec 10, 2010 11:37am
Hi

Its the most powerful and respected Fibonacci level in trading

The Golden Ratio
After the first few numbers in the Fibonacci sequence, the ratio of any number to the next higher number is approximately .618, and the lower number is 1.618. These two figures are the golden mean or the golden ratio.


What is so special about the Golden Ratio? You will find the Golden Ratio by dividing the higher number with the lower number by taking any two consecutive numbers in the series after the first few.

The inverse of 1.618 is 0.618. The inverse of the Golden Ratio is also a very important number in Fibonacci trading.

Psychologically if we get a sudden burst or run up in price most traders feel it has retraced to near its maximum before another burst up when it hits roughly 60-70 %


Cheers Paulus
  • #220
  • Dec 10, 2010 4:38pm Dec 10, 2010 4:38pm
Quoting Paulus
...

When US closes if Im in profit i often close

cheers

P
Hmmm, that is an interesting and understandable twist....

Regards,

Jeff
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