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How to use the 123 strategy effectively

  • #401
  • Dec 20, 2010 6:15am Dec 20, 2010 6:15am
Nice 1-2-3 on the GBPUSD. I trade all 1-2-3's whether with or against the trend. I traded one lot to the 150 fibo level since this was a 50 fibo retracement trade.
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  • #402
  • Dec 20, 2010 6:28am Dec 20, 2010 6:28am
Quoting pres78
Nice 1-2-3 on the GBPUSD. I trade all 1-2-3's whether with or against the trend. I traded one lot to the 150 fibo level since this was a 50 fibo retracement trade.
Interesting approach matching up the fib retracement % to a fib extension target.

In this long, did you enter just above '2' and was the initial stoploss below '3'?
  • #403
  • Dec 20, 2010 6:33am Dec 20, 2010 6:33am
Quoting sidefx
Interesting approach matching up the fib retracement % to a fib extension target.

In this long, did you enter just above '2' and was the initial stoploss below '3'?
On this trade I entered at 2, SL at 3 for a 1:1 ratio.
Today's zone = Tomorrow's opportunity!
  • #404
  • Dec 20, 2010 7:02am Dec 20, 2010 7:02am
Trade 2... entered at 2 and TP was 150 again since this was a 50 fib retrace. This one was a little more careful for me since it was 2 down candles and 2 up candles only to make up the points 2 and 3...
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Today's zone = Tomorrow's opportunity!
  • #405
  • Dec 20, 2010 7:11am Dec 20, 2010 7:11am
Quoting pres78
Trade 2... entered at 2 and TP was 150 again since this was a 50 fib retrace. This one was a little more careful for me since it was 2 down candles and 2 up candles only to make up the points 2 and 3...
What rules do you use to decide what % retracement it is?...on this short trade the wicks touched 61.8 and the bodies only 38.2?
  • #406
  • Dec 20, 2010 7:17am Dec 20, 2010 7:17am
Quoting sidefx
What rules do you use to decide what % retracement it is?...on this short trade the wicks touched 61.8 and the bodies only 38.2?
Forex is very subjective I guess in that everyone perceives trades and candles slightly differenty. I do not put much weight into the wicks as these are simply points of testing that were not able to hold. If the highest body close is between 38.2 and 50 I consider it to be 50... if it is 38.2 and under I consider it 38.2. The only thing i look at the wicks as is a failed attempt to break and hold the 50 level...
Today's zone = Tomorrow's opportunity!
  • #407
  • Dec 20, 2010 7:20am Dec 20, 2010 7:20am
Quoting pres78
Trade 2... entered at 2 and TP was 150 again since this was a 50 fib retrace. This one was a little more careful for me since it was 2 down candles and 2 up candles only to make up the points 2 and 3...
Good thing I got out at -50 fib as price is taking off to the North ATM...
Today's zone = Tomorrow's opportunity!
  • #408
  • Dec 20, 2010 7:21am Dec 20, 2010 7:21am
Quoting pres78
Forex is very subjective I guess in that everyone perceives trades and candles slightly differenty. I do not put much weight into the wicks as these are simply points of testing that were not able to hold. If the highest body close is between 38.2 and 50 I consider it to be 50... if it is 38.2 and under I consider it 38.2. The only thing i look at the wicks as is a failed attempt to break and hold the 50 level...
Thanks for the clarification.
  • #409
  • Dec 20, 2010 7:49am Dec 20, 2010 7:49am
Quoting ChinaWombat
probably because then it will be a continuation pattern of the break...if it forms within the previous days range then you're using the prior S/R as part of your entry
then again, if you require #1 to be breaking the High or Low, which are acting as resistance or support....
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  • #410
  • Dec 20, 2010 9:05am Dec 20, 2010 9:05am
I have 2 shorts triggered atm

EU from 1.3140

GU 1.5523

Cheers

Paulus
  • #411
  • Dec 20, 2010 9:08am Dec 20, 2010 9:08am
Im worried..please dont over complicate a simple count with loads of useless indicators..you end up with too many conflicting signals


I have devised many system based on indicators none are as reliable as taking reversal 123 counts dont worry about leaving pips on the table the secret is not to lose the pips in the 1st place by over trading

p
  • #412
  • Dec 20, 2010 9:23am Dec 20, 2010 9:23am
Trade 3... this one retaced further than I normally like (all the way past 50 to 68.2)... But since it seemed like we were buliding to a breakout I took the trade and set my TP at the -68.2 fib. I was also watching for a breakout to the upside where point 1 would have been point 2 for the count...
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Today's zone = Tomorrow's opportunity!
  • #413
  • Dec 20, 2010 9:32am Dec 20, 2010 9:32am
I agree with Paulus, been stung too many times over-trading. GU and EU shorts similar to Paulus today, which set themselves up after the asian session long trendline breaks.
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  • #414
  • Dec 20, 2010 9:48am Dec 20, 2010 9:48am
well patience pays the bills follow the rules and the sell is filled looking for a long now.
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  • #415
  • Dec 20, 2010 10:02am Dec 20, 2010 10:02am
Quoting Paulus
I have 2 shorts triggered atm

EU from 1.3140

GU 1.5523

Cheers

Paulus

Closed out my EU with +37

GU still short

p
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  • #416
  • Dec 20, 2010 10:48am Dec 20, 2010 10:48am
Quoting Paulus
Closed out my EU with +37

GU still short

p
Paulus... please, take a look at my chart...why didnt u enter at 123 in red...looks like it was a valid set up... but then, would u get stopped?
and only on second attempt the trade wd be profitable.
please, help me to understand it.
Thanks.
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  • #417
  • Dec 20, 2010 10:51am Dec 20, 2010 10:51am
no paulus would never be stoped cause he uses 1 as SL and distance betwenn 1 to 2 as TP ... so SL never was hit...

but he may answer in better details why...

cheers.


and now waiting for the 3 to place the setups and the entrys.... let's wait and be patience
  • #418
  • Dec 20, 2010 11:00am Dec 20, 2010 11:00am
well I think 3 is placed so buy stop is place 1 pip above 2 let's wait now...


paulus please feel free to coment or to give some recomendations ... i'm here to learn thanks for all....



buy the way 1 is already placed on the 1h tf too.

cheers
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  • #419
  • Dec 20, 2010 11:20am Dec 20, 2010 11:20am
took 1-2-3 long in u/j a while ago. still sitting around entry point. targeting 84.12 area.
  • #420
  • Dec 20, 2010 11:33am Dec 20, 2010 11:33am
Keeping my eyes on both the GBP and EUR USD crosses for possible 1-2-3's to the short side... As you can see the EUR bounced perfectly at the DS1 level. Both pairs have room to the downside if the breaks do happen.
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