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How to use the 123 strategy effectively

  • #601
  • Dec 29, 2010 9:57am Dec 29, 2010 9:57am
Quoting pgpb
Paulus

Re: GBP right now

I had a one marked at 1.5446....and then price went up to hit 1.5447
So....do you mark this as a new "one" or do you consider it like a double top? ....and still trade a break of 1.5426?

PGPB
We have to have a lower hi for a 3 count on a short ...as price went from 46 to 47 we now have to move the 1 count we had to the new position and start again

cheers
P
Attached Image (click to enlarge)
Click to Enlarge Name: new 1 count.gif Size: 12 KB
  • #602
  • Dec 29, 2010 10:03am Dec 29, 2010 10:03am
I am now short GU from 1.5423

TP is 1.5407
SL is 1.5448

cheers

P
Attached Image (click to enlarge)
Click to Enlarge Name: current short.gif Size: 15 KB
  • #603
  • Dec 29, 2010 10:09am Dec 29, 2010 10:09am
I cannot see your EU short on my feed, as the first retrace had only TWO candles here.

Attached please find also the EJ chart. Which count would be valid?

Cheers

Thomas


Quoting Paulus
GU agree no trigger at all yet

Eu agree triggered and banked 20pips

REJ dont follow sorry

Currently long EU from 1.3131 TP is 1.3252 SL is 1.3107

cheers

P
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu.gif Size: 24 KB
Click to Enlarge Name: ej.gif Size: 29 KB
  • #604
  • Dec 29, 2010 10:30am Dec 29, 2010 10:30am
The EJ chart is correct on your 1st count and that trade is still in play

your 2nd count although a 123 isn't used until the SL or TP of the 1st count is hit

cheers

Paulus
Attached Image (click to enlarge)
Click to Enlarge Name: correct count.gif Size: 21 KB
  • #605
  • Dec 29, 2010 10:34am Dec 29, 2010 10:34am
Quoting Paulus

Currently long EU from 1.3131 TP is 1.3252 SL is 1.3107

cheers

P
This long is going well but slow 8 pips from Tp
Attached Image (click to enlarge)
Click to Enlarge Name: eu long.gif Size: 14 KB
  • #606
  • Dec 29, 2010 10:37am Dec 29, 2010 10:37am
TP now hit on this trade

Now start a 123 short count

EU +21 pips plus 20 from earlier

GU short but looking like a stop out ..in which case GU still long and will look for 123 down count which technically is good as it bring EU and GU in line

P
Attached Image (click to enlarge)
Click to Enlarge Name: eu long tp hit.gif Size: 15 KB
  • #607
  • Dec 29, 2010 12:25pm Dec 29, 2010 12:25pm
Quoting Paulus
TP now hit on this trade

Now start a 123 short count

EU +21 pips plus 20 from earlier

GU short but looking like a stop out ..in which case GU still long and will look for 123 down count which technically is good as it bring EU and GU in line

P
ok Gu lost me 24 pips

But account up 5% today so far

now have 1 in place on both Gu and EU

cheers

P
  • #608
  • Dec 29, 2010 1:31pm Dec 29, 2010 1:31pm
Paulus........

I just wanted to say thank you again for all your contributions here, this has been a great help to a lot of traders.
It has been a help to me as well in zeroing in on a system I have played with off and on for quite a while, this system dovetails nicely with my long term system.

You da man......
  • #609
  • Edited 3:56pm Dec 29, 2010 2:19pm | Edited 3:56pm
Didn't we have the same problem on EU and EJ?

So it would be - looking for longs?

The problem with the count is, once you're out of sync you fu** everything up. Because you're waiting for your trade to be triggered and don't take trades in the other direction.

Have a look at EJ - if one FIRST would have looked for a long there would be three successful trades today. LONG SHORT LONG

Same with EU First LONG then SHORT - both winners. I'd say your first 20pip short wasn't according to the "system". Not four candles in the retrace leg.

It would also help to define, what qualifies as a leg and what qualifies as a pivot to see if price is making HLs and HHs or LLs and LHs and to have some rules for ranging PA.

Cheers

Thomas

Quoting Paulus
it pays to stay sharp and counter trend with the current trend

Ive watched GU all day for a short trigger only to surmise to late im in the wrong direction and it doesnt take much working out

If you look at my chart you will see my 123 for a short position..In the Asian we had a run up ie price runs up from lower left to top right..also price is at the top of the Asian box in grey................so I need to look for shorts using 1 23

The 1 was easy the 2 was easily marked but what I failed to take account of was that the 2 count made a lower...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: correct count.gif Size: 23 KB
Click to Enlarge Name: eu.gif Size: 26 KB
  • #610
  • Edited 4:50pm Dec 29, 2010 4:19pm | Edited 4:50pm
Quoting Paulus
Hi Im not a magician here

I didnt start the thread Im trying to help

Im trading fine thanks .......find your own way of finding out what qualifies as a leg and a pivot I really dont care

If you read my posts I also say I have found after checking past signals that a set up does occur that isnt the regular count

do you think that may be the 1st signal without 2 candles between 1 and 2 hmmm

i think so ..I just havnt brought out into the open yet ..you think i should for the good of the many

I will prob read this later and delete it because...
Paulus,

Just keep posting your setups and let others learn from them and make their own decisions on whether they agree and if not why or what would they have done differently. I trade 123's and not just trend reversals but love to see what others are thinking... for just that just... to see others opinions. Do I take trades based on others advice? No! Will I take a trades after reading someones post on a set up I may have missed? Yes but only after making my own analyisis.

You hit the nail on the head that you nor anyone else here owes anyone anything and we are all here to try and help others trade the 123 system as we see it and hopefully learn a few things ourselves.

Keep up the great work.
Today's zone = Tomorrow's opportunity!
  • #611
  • Dec 29, 2010 4:23pm Dec 29, 2010 4:23pm
this week im going to trade a set up ive seen many times in fact I have posted the trades and been pulled up as they didnt qualify...

But after looking at my trading history some good opportunities have been let slip

If things go wrong this week I will bin it ..

Thinking logical for a short

1 down to 2 we need more than 1 bar between the 2 and 3 a min of 2 bars ...

we then rally 1 bar and the next bar makes our 3 point

if the sellers are strong and the buyers weak technically the least number of bars that make a hi one after the other after the 2 count the better for our short .....

Especially is that 1 bar gap hits our retracement level

As I say with my 5% rule i will monitor and we will see

P
Attached Image (click to enlarge)
Click to Enlarge Name: 1bar count.gif Size: 19 KB
  • #612
  • Dec 29, 2010 4:39pm Dec 29, 2010 4:39pm
I bit im sorry

seems along day today ..but I have deja vu ..the trouble with putting yourself on offer your some times shot at.lols sorry tdeu

Im not the leader here many many good traders here far better than me..far more disciplined I know that for a fact I see evidence of it all over this forum

the market will go where it will driven by supply and demand

123 shows that supply and demand to be right 55% of the time means you make money thats good

To double your account every 20 trading days is great .. can it be done yes of course

But

we need an edge .. 123 gives that edge

we need our risk to be controlled .. money management gives us that control

we need to feel we are not an individual isolated on our own swimming against the tide .. FF gives us that comradeship that sense of feeling of belong to a community of like mined people no matter where we live or what our size shape or colour.

we need to feel that if some one offered to us and we took ..then we in turn should offer to others .. FF gives us that opportunity
  • #613
  • Dec 30, 2010 1:31am Dec 30, 2010 1:31am
Love 1 2 3 best ever on H1 currently working on ea's and scripts that let me set partial closes.
  • #614
  • Dec 30, 2010 1:36am Dec 30, 2010 1:36am
1st count

GU looking for shorts

EU marked both counts ....short triggered no real trend price broke half way out of box price had been moving up at that point

Expect very low volatilty today

P
Attached Image (click to enlarge)
Click to Enlarge Name: 1st count.jpg Size: 46 KB
  • #615
  • Dec 30, 2010 2:07am Dec 30, 2010 2:07am
Quoting tdeu
Didn't we have the same problem on EU and EJ?

So it would be - looking for longs?

The problem with the count is, once you're out of sync you fu** everything up. Because you're waiting for your trade to be triggered and don't take trades in the other direction.

Have a look at EJ - if one FIRST would have looked for a long there would be three successful trades today. LONG SHORT LONG

Same with EU First LONG then SHORT - both winners. I'd say your first 20pip short wasn't according to the "system"....
Attached Image (click to enlarge)
Click to Enlarge Name: 123 setup.gif Size: 31 KB

Only problem is exits with this indicator is a bitch. The one on the chart is in the library under indicators.
  • #616
  • Dec 30, 2010 4:57am Dec 30, 2010 4:57am
Quoting Shanexx
Attachment
Only problem is exits with this indicator is a bitch. The one on the chart is in the library under indicators.
Attached Image (click to enlarge)
Click to Enlarge Name: 123 setupt1.gif Size: 31 KB
Attached Image (click to enlarge)
Click to Enlarge Name: 123 setupt2.gif Size: 34 KB


Proof is in the pudding and patience is a wealth.
  • #617
  • Dec 30, 2010 5:21am Dec 30, 2010 5:21am
Quoting Shanexx
Attachment Attachment

Proof is in the pudding and patience is a wealth.
Please post this indicator

I do not see how the trade you took was based on the 123 pattern

PGPB
  • #618
  • Dec 30, 2010 5:43am Dec 30, 2010 5:43am
Quoting pgpb
Please post this indicator

I do not see how the trade you took was based on the 123 pattern

PGPB

be careful it repaints...i think its easier to do manually but if you need it
Attached File(s)
File Type: mq4 3_Level_ZZ_Semafor_Alert.mq4   8 KB | 357 downloads
Catching a falling knife, no, I'm just trading the Gartley!
  • #619
  • Dec 30, 2010 6:05am Dec 30, 2010 6:05am
Paulus,

Please don't take this personal (and excuse my bad English).

My intention was to give the 123 count some black & white structure like you use for your trade management.

I like to understand your thinking and do not just want to copy something.

An idea for "grey" counts (ranges with HHs and LLs or LHs and HLs) would be to wait for a breakout or a trend to establish and then wait for the CT setup.

I don't know if others have a use for it - but give something back...

Something I use to make me aware of pending news. Awesome indi
http://www.forexfactory.com/showthread.php?t=250544

Cheers

Thomas
  • #620
  • Dec 30, 2010 6:26am Dec 30, 2010 6:26am
Took this and went for -50% target as this was a 50% retrace. Traded this as a 5% trade per Paulus MM. Staying away from EUR ATM as I do not like the PA.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 34 KB
Today's zone = Tomorrow's opportunity!
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