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How to use the 123 strategy effectively

  • #1,041
  • Jan 19, 2011 4:12am Jan 19, 2011 4:12am
Would you guys see this as a valid 1,2,3 also 1 forming on the 1h gu this chart is the eu 15 min.
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  • #1,042
  • Edited 9:51am Jan 19, 2011 6:25am | Edited 9:51am
Quoting patter
Would you guys see this as a valid 1,2,3 also 1 forming on the 1h gu this chart is the eu 15 min.
The one thing that would have kept me out of this trade set-up is that most of the downmove that fomed 1-2 was made with such a large spread 5 min candle. I don't like seeing such odd looking candles in the patterns. If one candle really stands out I tend to wait for another set-up...

Again this is just my opinion...

Also the fact that point 1 was also formed off a spikey looking wide range bar (especially for a 5 min chart)...
Today's zone = Tomorrow's opportunity!
  • #1,043
  • Jan 19, 2011 6:33am Jan 19, 2011 6:33am
My one and only trade for the day as I didn't get up at LO... Took this one right before I went to bed last night.
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Today's zone = Tomorrow's opportunity!
  • #1,044
  • Jan 19, 2011 8:43am Jan 19, 2011 8:43am
Paulus... did u make any trades today?
  • #1,045
  • Edited Jan 20, 2011 1:14am Jan 19, 2011 4:41pm | Edited Jan 20, 2011 1:14am
that this is the minimum valid setup?

min. one candle between 1,2 and 3?

If so, we would have had these trades today:

AUDUSD - 2 winners (3 with a little exception)
EURUSD - 3 winners / 1 loser
GBPUSD - 2 winners
USDCHF - 2 winners

I'm not counting the trades that were open 22GMT.

AWESOME!!!

The only pity is, that one has to watch the charts and it's hard to stay in the trades if the first take profits always seem to be at the 162% level.
Often there are wide whipsaws after the first TPs when the market is searching for the liquidity of the weak hands, that move their stops to BE or beyond swing H/L or fib levels. See 2nd chart.

One has to "just" trust the setup. And DON'T touch the stop....

Cheers

Thomas
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  • #1,046
  • Edited 4:00am Jan 20, 2011 2:42am | Edited 4:00am
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Today:
GU + 20pips
AU + 20pips
  • #1,047
  • Jan 20, 2011 7:34am Jan 20, 2011 7:34am
Here's something I just noticed on GBPUSD this morning. Unfortunately I slept through my alarm and missed it but on the 15 min we have a 2B setup. Drill down to the 1 minute and we have a 123. Both give the same entry point so this would be good confirmation to get into this trade. I haven't checked to see whether this is a good filter for 2B trade but definitely something worth considering.
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Dream big, start small. Have it all
  • #1,048
  • Jan 20, 2011 8:49am Jan 20, 2011 8:49am
another long on EU for 25 pips

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  • #1,049
  • Jan 20, 2011 9:11am Jan 20, 2011 9:11am
My only 123 trade today.
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Today's zone = Tomorrow's opportunity!
  • #1,050
  • Jan 20, 2011 2:48pm Jan 20, 2011 2:48pm
good day for me today

EU no actual 123 set ups but had 3 x 2B trades all winners

GU 2 123

1 winner 1 long from 1.5897

up 20 % on account

P
  • #1,051
  • Jan 20, 2011 5:49pm Jan 20, 2011 5:49pm
Well I think everyone has seen my set-ups and knows how I trade my 123's in comparision to Paulus and his method. This just shows how a simple method like 123 can be profitable for a wide range of traders trading the same system with their own little twists making it their own. I don't think posting anymore of my charts will serve any further purpose to this thread but I shall continue to follow along and will still comment on others charts when they are looking for guidance or anothers opinion...

PM me at anytime with any trading questions directly or undirectly related to the 123 method and I will do my best to help out.

All the best...
Today's zone = Tomorrow's opportunity!
  • #1,052
  • Jan 21, 2011 1:20am Jan 21, 2011 1:20am
Quoting pres78
Well I think everyone has seen my set-ups and knows how I trade my 123's in comparision to Paulus and his method. This just shows how a simple method like 123 can be profitable for a wide range of traders trading the same system with their own little twists making it their own. I don't think posting anymore of my charts will serve any further purpose to this thread but I shall continue to follow along and will still comment on others charts when they are looking for guidance or anothers opinion...

PM me at anytime with any trading questions directly...
It would be a great pity if you stop posting. Feel free to post here any time http://www.forexfactory.com/showthread.php?t=108544 you'll be very welcome.
Cheers.
  • #1,053
  • Jan 21, 2011 10:55am Jan 21, 2011 10:55am
Quoting Vantage
It would be a great pity if you stop posting. Feel free to post here any time http://www.forexfactory.com/showthread.php?t=108544 you'll be very welcome.
Cheers.
I second that, it's really good to see charts posted as I'm still learning this method so any help is appreciated
Dream big, start small. Have it all
  • #1,054
  • Jan 21, 2011 11:06am Jan 21, 2011 11:06am
Here's a trade I took on GBPUSD a few hours ago. It was stopped out after I took the screen shots but it shows how important it is to take into account support and resistance levels. The first chart is at MT4 with the entry stop and exit. The exit is the lower dotted line and was a few pips below the 1:1 level to take into account the spread. As you can see, price hit that level to the pip and then reversed. The second chart is a 200tick chart with the 4 day highs and lows marked (this is another system I use). The 4 day H/L levels are used by big institutions and as you can see formed a perfect support level at 1.5955. Had I placed my profit target at 1.5955 minus spread rather than + spread I have a winning trade rather than a losing trade. Lesson learned and still demoing to get fully comfortable before going live.
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Dream big, start small. Have it all
  • #1,055
  • Jan 21, 2011 11:08am Jan 21, 2011 11:08am
I forgot to mention that in the 200 tick chart, the yellow lines are the high and low of the 1st 15 mins of the session open (in this NY) and can also act as S/R levels
Dream big, start small. Have it all
  • #1,056
  • Jan 21, 2011 11:41am Jan 21, 2011 11:41am
Quoting sean007
Here's a trade I took on GBPUSD a few hours ago. It was stopped out after I took the screen shots but it shows how important it is to take into account support and resistance levels. The first chart is at MT4 with the entry stop and exit. The exit is the lower dotted line and was a few pips below the 1:1 level to take into account the spread. As you can see, price hit that level to the pip and then reversed. The second chart is a 200tick chart with the 4 day highs and lows marked (this is another system I use). The 4 day H/L levels are used by big...
I have a bit of a different take on taking into account spreads. I also remove them from both my TP and SL levels to avoid just this... If point 1-2 is 30 pips then I will go for 28 pip target (price has to move the 30 to hit it) and do the same with my SL... this is built into my 5% risk:reward as well. Many add spreads but I have seen to many trades hit my TP right on the nose only to reverse and miss by the spread. As for losing 2 pips on my SL breathing room well if it came that close it's gonna hit it anyway as for some silly reason I have never had a trade hit my SL and stop before moving that 2 extra pips to hit my actual SL.

The other thing I see is that your retrace to point 3 was only 1 green candle up to the highest point forming point 3... most like to have at least a couple of candles make up that retrace.

Keeping S&R in mind is a very, very important part of my trading and I wouldn't trade any system without taking it into account.
Today's zone = Tomorrow's opportunity!
  • #1,057
  • Jan 21, 2011 12:00pm Jan 21, 2011 12:00pm
Quoting sean007
I second that, it's really good to see charts posted as I'm still learning this method so any help is appreciated
My one and only 123 trade from ealier today...
Attached Image
Today's zone = Tomorrow's opportunity!
  • #1,058
  • Jan 21, 2011 12:44pm Jan 21, 2011 12:44pm
Quoting pres78
I have a bit of a different take on taking into account spreads....
Yes good point about only 1 green candle to point 3.
Dream big, start small. Have it all
  • #1,059
  • Jan 21, 2011 1:16pm Jan 21, 2011 1:16pm
2 trades today both normal; 123 no 2B at all

W and W on GU and EU

nice points tally also 54 and 47 respectively

Cheers

P
  • #1,060
  • Jan 21, 2011 2:14pm Jan 21, 2011 2:14pm
Quoting Paulus
2 trades today both normal; 123 no 2B at all

W and W on GU and EU

nice points tally also 54 and 47 respectively

Cheers

P
Hi Paulus, do you mind posting the charts. I assume EU was the long that triggered around 14: 20 GMT?
Dream big, start small. Have it all
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