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Attachments: How to use the 123 strategy effectively
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How to use the 123 strategy effectively

hey CW

is entry at 1 pip break of low or high

thanks
2B set up on e/u

failed 123 followed by 2B
Quoting FOURX
hey CW

is entry at 1 pip break of low or high

thanks
it should be for both in theory the same as for futures... the tricky thing with fx it will depend upon your broker, if they fixed spread or ECN/STP then your have to add the spread to any stop buy entries you leave, unless you can watch manually and then try to enter at the tick

some of the fixed spread crims, opps, sorry, brokers can have spreads 2,3 pips or even higher so i don't see the point to trade 5min charts if you have such a broker..i use ECN brokers so they usually about .5~.8 of a pip in normal market conditions so if i have a high for my 2 point at 85, then i will leave an stopbuyentry at 86...

if you have a fixed priced crim that has a two pip spread, then you would have to it at 87.5 or 88 so that you don't end up entering prematurely. you need a chart price to print above 85 to make it a valid 2 point break so with a 2 pip broker then that would equal an 85.5/86 bid, meaning you would have to pay the 87.5/88 offer to enter

much simplier for sells...just a pip lower

the larger the time period under consideration the less importance the spread will make, and can even consider 'trader trick entries' with enough experience and confidence
Catching a falling knife, no, I'm just trading the Gartley!
Quoting FOURX
2B set up on e/u

failed 123 followed by 2B
15m eujy has a potential set-up, and coming into prior resistance
Catching a falling knife, no, I'm just trading the Gartley!
Quoting ChinaWombat
it should be for both in theory the same as for futures... the tricky thing with fx it will depend upon your broker, if they fixed spread or ECN/STP then your have to add the spread to any stop buy entries you leave, unless you can watch manually and then try to enter at the tick

some of the fixed spread crims, opps, sorry, brokers can have spreads 2,3 pips or even higher so i don't see the point to trade 5min charts if you have such a broker..i use ECN brokers so they usually about .5~.8 of a pip in normal market conditions so if i have a high...
i'm with you
Quoting ChinaWombat
you do like to make it hard on yourself...what was wrong with the 1.3255 entry for your 2 point... you gave a lot of the potential upside away as risk?

or maybe i should preface that question with, which strategy are you using, so that "simple'' doesn't jump on and flame me?
i try to trade and learn as by the simple rules from paulus first written.
he stated to have minimum two bars between 1 and 2.
thats why i dindt take the 1.3255 entry, because there was only one bar between and therefore too risky for me.

the risk is in the end the same, because i risk the same amount of % on every trade.
I know that you and I know nothing.
CW and Pres (if you are around)

Do either of you have a view on Paulus' rule of more than one bar between the points? In your experience is it necessary?

Look forward to hearing your thoughts!
Quoting Delite
CW and Pres (if you are around)

Do either of you have a view on Paulus' rule of more than one bar between the points? In your experience is it necessary?

Look forward to hearing your thoughts!
the best is: just do your own research, then u will have the answer.
I know that you and I know nothing.
Quoting Delite
CW and Pres (if you are around)

Do either of you have a view on Paulus' rule of more than one bar between the points? In your experience is it necessary?

Look forward to hearing your thoughts!
I honestly am not fully up on Paulus's rules as I came here with my own method. I like to see at least 2 downbars forming point 2-3 when looking for a long and vise versa for shorts. Does Paulus want to have 2 or 3 bars between point 2 and 3???

Anyway all I can say is trade and test and trade some more... find what works and make it your own. For me anything less than 2 bars doesn't represent a real retrace...
Today's zone = Tomorrow's opportunity!
Quoting birdland
the best is: just do your own research, then u will have the answer.
We are here to learn and share together. I fully agree that you have to test and trade and make a method your own but asking for others opinions is welcome.
Today's zone = Tomorrow's opportunity!
hey pres

congrats on your new arrival, just read it
Quoting FOURX
hey pres

congrats on your new arrival, just read it
Much appreciated...
Today's zone = Tomorrow's opportunity!
Quoting birdland
the best is: just do your own research, then u will have the answer.

Hey - I have been working on this for some time. I am interested in sharing opinions with others to see of they have thought of things I may have missed. I believe that is the whole point of this forum.
Trade taken on EURUSD on 200 Tick chart. As metatrader doesn't have a tickchart option I've also attached the 1 minute chart showing the same trade. The method involves looking for a setup around the London Open and ideally within the range of the 1st 15 minutes (shown by the cyan lines on the tick chart or the magenta box on the 1 minute. There is a free version of Multicharts now available and you can get a free datafeed from MB Trading by opening a demo account. If anyone is interested in this, PM me and I can give you details of how to set it all up
Attached Images (click to enlarge)
Click to Enlarge Name: eur 1 min 22 feb.gif Size: 24 KB Click to Enlarge Name: eur-tick-22-feb1.jpg Size: 166 KB
Dream big, start small. Have it all
In my opinion and experience, a min of 2 bars between points 1 and 2 is absolutely necessary.

As to point 3 if it has retraced to at least 38.2% level of move 1-2 we can compromise on the 2 bars between 2 and 3 and have a min of 1 bar, still it carries a higher risk and it is best to have 2 bars in between.
Regards
Quoting pres78
We are here to learn and share together. I fully agree that you have to test and trade and make a method your own but asking for others opinions is welcome.
nothing against that

but to have the authority to trade it the only way is to do your own research.
I know that you and I know nothing.
Quoting Delite
Hey - I have been working on this for some time. I am interested in sharing opinions with others to see of they have thought of things I may have missed. I believe that is the whole point of this forum.
yes, i am 100% understanding and confirming u.
I know that you and I know nothing.
Quoting birdland
nothing against that

but to have the authority to trade it the only way is to do your own research.
Agreed one must make a decision and a plan on how they will trade these pattern set-ups, believe in it and stick to it. If it doesn't work out how you like then figure out why and adjust your plan.

The biggest thing I want everyone to remember though is when in doubt ask as someone on here has most likely had the same experience or questions and can offer some great insight.
Today's zone = Tomorrow's opportunity!
Pres and Howard

Thank you both. Yes, I have taken trades where the retrace meets the fib criteria but with only one bar. Interesting. Will keep my eye on both to see if the fib retrace is sufficient.

have a great afternoon!
Here is a trade I entered a short time ago... Never traded this before so we will see...

Retrace was to the 61.8 fib with a touch and close below (based on how I draw my fibs) so I have my target set for -61.8 fib level (not shown on my current fib as I had it set-up for another system... Damn MT4 I wish you could save different fib setttings to load as you wish).
Attached Image
Today's zone = Tomorrow's opportunity!
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