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How to use the 123 strategy effectively

  • #1,001
  • Jan 17, 2011 9:20am Jan 17, 2011 9:20am
Quoting bubola
more coming...
Hi bubola
Not sure where your 1 2 3 is on this chart?
  • #1,002
  • Jan 17, 2011 9:22am Jan 17, 2011 9:22am
usd/chf long 5mn: another Heiken Ashi rotation
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  • #1,003
  • Jan 17, 2011 9:24am Jan 17, 2011 9:24am
Quoting bubola
usd/chf long 5mn: another Heiken Ashi rotation
I am struggling to see the 123 set-ups on the charts youn posted.
Today's zone = Tomorrow's opportunity!
  • #1,004
  • Jan 17, 2011 9:29am Jan 17, 2011 9:29am
Quoting bubola
more coming...
If this losing trade was a buy right on FO thats a toughie, I've stopped trading that very first move at 6am gmt as there are lots of fake outs. If that helps you.
  • #1,005
  • Jan 17, 2011 9:29am Jan 17, 2011 9:29am
Quoting pres78
I am struggling to see the 123 set-ups on the charts youn posted.
i took them not as 123. but as an earlier entry based on HH rotation. as i said i was experimenting with something: funny thing, it worked on all the pairs i didn't trade...also, got it wrong, only 3 losses, not 4
  • #1,006
  • Jan 17, 2011 9:30am Jan 17, 2011 9:30am
Quoting bubola
i took them not as 123. but as an earlier entry based on HH rotation
Oh, OK.
Today's zone = Tomorrow's opportunity!
  • #1,007
  • Jan 17, 2011 9:33am Jan 17, 2011 9:33am
Quoting bubola
i took them not as 123. but as an earlier entry based on HH rotation. as i said i was experimenting with something: funny thing, it worked on all the pairs i didn't trade...also, got it wrong, only 3 losses, not 4
Looks like the 123 was the only successful trade today... Maybe you should stick just with them and perhaps the 2B trades. Do these Henken Ashi trades normally work out for you?
Today's zone = Tomorrow's opportunity!
  • #1,008
  • Jan 17, 2011 9:33am Jan 17, 2011 9:33am
Quoting Vantage
If this losing trade was a buy right on FO thats a toughie, I've stopped trading that very first move at 6am gmt as there are lots of fake outs. If that helps you.
true, but sometimes there are small swings with small targets that get filled before FO
  • #1,009
  • Jan 17, 2011 9:36am Jan 17, 2011 9:36am
Quoting pres78
Looks like the 123 was the only successful trade today... Maybe you should stick just with them and perhaps the 2B trades. Do these Henken Ashi trades normally work out for you?
1st time i tried them...and yes, better stick to regular 123 for now, but i'll continue to monitor them as i see some potential. not a topic for this thread, though
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  • #1,010
  • Jan 17, 2011 9:39am Jan 17, 2011 9:39am
Quoting bubola
tried to add a position to the h4 E/U short on Heiken Ashi rotation

edited: better chart, perhaps, vantage?
Hi again b,

Like your gu buy this also is a very tough time to trade. Early US trade often takes a lot longer to turn around.

Its unlucky that you took the sell which no doubt kept you out of the successful 1 2 3 buy that followed. Personally I'd have been looking to follow the prev positive close 1hr candle.

Again hindsight is easy, tough luck.
  • #1,011
  • Jan 17, 2011 9:53am Jan 17, 2011 9:53am
Don't forget guy's....... Today is a US bank holiday.
  • #1,012
  • Jan 17, 2011 10:22am Jan 17, 2011 10:22am
Quoting bubola
usd/chf long 5mn: another Heiken Ashi rotation
Hi Bubola,

I'm not trying to be a Monday morning quarterback, although it is Monday.. but when I saw your USDCHF 5m chart I wanted to comment on it and offer a few options about how to interpret the price action you were caught in. I am assuming that you are using real money to trade with and so it might be worth taking what I suggest seriously. I think the members of this thread are very respectful and serious contributors and it is in this spirit that I attach a chart which shows what I might have considered trading if the price action overall was decent. The first suggestion is to look at the overall price action
which in this case is terrible. Price is trading in a large range so you want to avoid getting caught in the middle of the range where you will be trapped. If a trader does not learn this simple truth (which I very painfully have) you will certainly lose all your money. Efficient markets are designed to take your money in these ranges. The second suggestion is to at least look for a trendline which may be broken, or is offering support - it can be your lifeline to avoid risk and keep yourself on the right side of the market. In the chart I have attached there is a trendline up so until that is broken, why would you want to be short? The third suggestion is to actually identify clear 123's that you are interested in trading and see what context it occurs in: is it a continuation of an existing trend ie a pullback setup; is it in the middle of a range (a trap); or is it forming after the market has become overdone long or short?

From the charts you posted, I thought these simple suggestions might be helpful to you. My only intention was to be helpful. There are other elements of simple price analysis that you can apply to trade more safely, not least of which is to either stop trading live, or lower your risk exposure on each trade to remove emotional weight. Personally, I HATE to give money to the brokers and market makers but until I learned to read charts with some basic tools, that is what I spent my time doing. Now my only problem is missing trades!

Anyway if you look at the chart you'll get the idea. There was much better better price action this morning on EURUSD, EURJPY etc.

Take care,

Joe
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  • #1,013
  • Jan 17, 2011 10:49am Jan 17, 2011 10:49am
Quoting jsmanuse
Hi Bubola,

I'm not trying to be a Monday morning quarterback, although it is Monday.. but when I saw your USDCHF 5m chart I wanted to comment on it and offer a few options about how to interpret the price action you were caught in. I am assuming that you are using real money to trade with and so it might be worth taking what I suggest seriously. I think the members of this thread are very respectful and serious contributors and it is in this spirit that I attach a chart which shows what I might have considered trading if the price action...
hi joe...still demoing, so not too worried about losing at this point. i usually do take TL into consideration when i choose my setups. i was just trying something new today, and i was the first to recognize that there was better price action for what i was trying to do on other pairs this morning. thanks for you insight, well appreciated.
  • #1,014
  • Jan 17, 2011 11:01am Jan 17, 2011 11:01am
Quoting bubola
hi joe...still demoing, so not too worried about losing at this point. i usually do take TL into consideration when i choose my setups. i was just trying something new today, and i was the first to recognize that there was better price action for what i was trying to do on other pairs this morning. thanks for you insight, well appreciated.
excellent!
  • #1,015
  • Jan 17, 2011 11:08am Jan 17, 2011 11:08am
Quoting jsmanuse
Hi Bubola,

I'm not trying to be a Monday morning quarterback, although it is Monday.. but when I saw your USDCHF 5m chart I wanted to comment on it and offer a few options about how to interpret the price action you were caught in. I am assuming that you are using real money to trade with and so it might be worth taking what I suggest seriously. I think the members of this thread are very respectful and serious contributors and it is in this spirit that I attach a chart which shows what I might have considered trading if the price action...
Joe,

I hope you don't mind but I have highjacked your chart to show another point that may help some people watch out for rangebound trades in a very simple way.

WRB (wide range bars) whether you use volume or not especially when they close off their respective highs or lows (like the bar that Joe identifed from Friday) create a change over in the supply / demand dynamics. The zones created by these bars when looking at the High, Low and Close of the bars will often create strong support and resistance lines and zones that price can get stuck in. Look how ever since London open and even leading up to London price action has been stuck in the range of that bar formed by it's low and close. At no time after price entered this area has it been able to break out. This for me makes this pair untradeable until I see a clear break from this zone.

WRB's can be a very useful tool for those of you that follow along with trend lines, support, resistance, supply, demand etc...

You can see on my second and third chart how a WRB from Thursday affected PA all day Friday with no candles closing below the close of that WRB from the day before. WRB's represent a change in the supply, demand dynamics and the zones created by them often come into play in the future with PA once again testing them.

Hopefully once we get this US bank holiday out of the way pairs will become more tradeable.
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Today's zone = Tomorrow's opportunity!
  • #1,016
  • Jan 17, 2011 11:20am Jan 17, 2011 11:20am
this was a winner, took all day but it finally got there
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  • #1,017
  • Jan 17, 2011 11:37am Jan 17, 2011 11:37am
[quote=pres78;4320278]Joe,

I hope you don't mind but I have highjacked your chart to show another point that may help some people watch out for rangebound trades in a very simple way.


No problem Pres. That is very helpful. I've been reading the MTM book since you mentioned it a while back, and it has been very helpful, although definitely complex. I'm one to vote for the KISS approach whenever possible, and it's pretty easy to spot high volume bars with the BetterVol indie. Although I've been watching volume I've resisted adding it to my toolbox in order to avoid distraction. But I think it works perfectly well with the 123's.

-Joe
  • #1,018
  • Jan 17, 2011 11:48am Jan 17, 2011 11:48am
[quote=jsmanuse;4320341]
Quoting pres78
Joe,

I hope you don't mind but I have highjacked your chart to show another point that may help some people watch out for rangebound trades in a very simple way.


No problem Pres. That is very helpful. I've been reading the MTM book since you mentioned it a while back, and it has been very helpful, although definitely complex. I'm one to vote for the KISS approach whenever possible, and it's pretty easy to spot high volume bars with the BetterVol indie. Although I've been watching volume I've resisted adding it to my toolbox...
Yes VSA is a way of trading unlike any other but is as you said... very complex. When using it in my pattern trades I look for falling off volume on retraces etc... and to identify wide range and high volume bars as these always form points of interest either short or long term. I too believe that simple is best but I am also an anylizing junkie and love to know why the market is doing what it is doing and where it is heading next. My way of trading works well for me but might be to indepth for others. That is why I try and show my 123 set-ups without too much refernce to my indicators so that others can see the set-ups.

I hope that the followers of this thread don't find my posts or charts to complicted or distracting to follow along with.
Today's zone = Tomorrow's opportunity!
  • #1,019
  • Jan 17, 2011 1:36pm Jan 17, 2011 1:36pm
Quoting bubola
tried to add a position to the h4 E/U short on Heiken Ashi rotation

edited: better chart, perhaps, vantage?
hi bad luck on trades but that is not a 123 setup as defined by my rules..just thought id say ...;-)

p
  • #1,020
  • Jan 17, 2011 1:41pm Jan 17, 2011 1:41pm
5 min trades

EU W 26 pips
GU W 34 pips

10% gain

1hour

EU short from 1/3318
TP 1.3183
SL 1.2457

daily still short

P
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