How to use the 123 strategy effectively

I need to clarify some thing here which I thought was obvious and haunt happened a great deal so its not really come up but have had an email from some one who had my address before i closed out email and Pvt messages

If we go short and that fails its because the price has broken our Stop loss which is point 1

As we know an up trend makes higher highs and higher lows so if our SL is hit on a short we can assume that the current trend made a higher hi and the trend is still in tact

2 reasons

Price made a higher hi
And that higher hi broke our stop and we lost

In the case of a loser i always look for a trade in the same direction...I trade counter trend so with a short that I lost on I look for another short because thats counter current trend

I hope that makes sense and it is the only time we can get short long long short or visa versa

cheers

P

I will be long on the following

EU if we hit 1.3103

GU if we hit 1.5407

cheers

P

Cable looks like it's on a downer.

which is exactly why this method works... and when combined with some harmonic patterns and respective PRZ then you wouldn't be selling gbp here

sorry i mean gbpjpy nice abcd forming on 4 hour chart (which is a bit off topic for this forum)

so what happened to trend is ur friend?

some traders use the 123 out of consolidation others use it with the current trend

I use it counter trend if right I get the begining of the trend if not I lose

I have traded with the trend alot trouble with a trend you want to grab the middle the safe part its difficult and easy to spot on days when a currency just dumps or rallies but when will it end 2bars after you get in ?..no one and no indicator can tell you

its you own personal choice years and years ago before electronic trading a dare say traders in such books as market wizards did make a killing on trends because the markets were fairly new and growth was imminent...

Not so sure these days..another saying is 'RR 3:1' but you trying getting it consistently

lols

P

may not get there before xmas but lets see...

i trade harmonic's so i'm always against the trend.... never been my friend

uups....looks like G/U dipped below point 1....E/U still in play....had a winner E/U and a loser A/U today, but I'm down about 1% because the A/U was a small one pip-wise (as mentioned before)...

Jeff

Yes it broke down through but has now bounced at the weekly support around the 5350 level.

+11 on GU

kooking for a long 123 set up

-25 +45 on EU

123 in place for long but no trigger yet

cheers
P

2 small longs

both triggered Eu and GU

Will close at 11pm tonight now 3 min to 10pm

not a bad week so far considering last week before Christmas which is notoriously bad for day trading

cheers

P

Can you put up these two charts when you get a chance? I don't quite see where you took these.

Thanks

Trend is time frame dependent.

Paulus (from what I can gather from posts here) likes to take 1 2 3's against the immediate short term movement. So typically in an around London open when a head fake move looks long he'll take a short. Also at close of London when counter trend moves happen.

1 2 3's are simply attempts to get in at start of moves as they are just indications of tests of certain levels and failure.

Sorry Paulus if I assume too much here.

By the way thanks Paulus, like your stuff!

Or you could view 1 2 3's as tests of TL breaks. Arrow up is Y's LO head fake move up. Arrow down is the lower high 1 2 3 resumption of 1hr trend.

Hello everyone...woke up a bit late, but still managed to catch the "big" one on the E/U that actually looks much better on the 15 minute chart, so lets call it that (and as of this writing is still in play):

http://i13.photobucket.com/albums/a2...2320100003.jpg

(please ignore the second sell and the one buy arrow...it was an experimental scalp [that went in my favor...I should have held {and I often say that after a TP on a scalp}])

I had a winner on A/U....I had decided the pip amount was large enough and the pip spread small enough (1.6 compared to 1.3 for E/U on OANDA) to warrant the risk to my account, so I bagged it for +25.1:

http://i13.photobucket.com/albums/a2...2320100002.jpg

....I'm excited as I signed up for a forex.com live account, mostly to get the Ninja Trader platform which is superior to MT4 (and OANDA's java charting) for it's multitude of options...I worked quite a bit with NT during 2008-09 during my Rainbow days....with the versatility of NT, I will be able to look into things like range bars (for scalping, but can also might give a "truer" picture of price movement and 1-2-3s), "odd" timeframes like eight minutes (or even ten minuted as ChinaWombat suggested), etc...nonetheless, I do not want to get bogged down either, as it doth appear this is a workable system as it is...

If I'm not back for a while, happy holidays to everyone! I will not be trading again until December 31 as I will be indisposed, but I'm very eager to get going full throttle once the new year arrives.



Jeff

There ya go gettin all complicated again.....LOL

Hello tradestar1...yeah, you are right! Well, at least forex.com has better spreads on a few of the pairs...I wonder if a mini is their smallest size...even if it is, I can still make it work by only taking certain sized trades.....still, I do feel NT is superior to MT4, I've wanted to get back to NT, and my Alpari UK demo ends soon...

OK, going to keep it simple....

On a side note....my E/U trade is still open...going to see where it goes....

Regards,

Jeff

demo accounts can always be renewed, but not your capital

why not just demo (using your risk capital as the nominal demo amount) for a couple of months until completely comfortable with it and then go live... there is no expiry date on the fx market

not a bad day yest all in all im please with prob the least volatile week in the year you can trade.

Alot of the big bang boys booked there gains and now drinking $1000 bottles of

Dom Perignon

have a 1 in place on EU for a short

P