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How to use the 123 strategy effectively

  • #1,321
  • Feb 22, 2011 9:40am Feb 22, 2011 9:40am
Quoting pres78
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).
TP hit...
Attached Image
Today's zone = Tomorrow's opportunity!
  • #1,322
  • Feb 22, 2011 9:56am Feb 22, 2011 9:56am
Quoting birdland
the best is: just do your own research, then u will have the answer.
what a silly comment....what do you think the forums are about...people are doing research by asking questions, which by definition is what research is, asking questions...

you combine the answers and then sift out what does and doesn't work for your own particular circumstances and build your trading plan around it
Catching a falling knife, no, I'm just trading the Gartley!
  • #1,323
  • Feb 22, 2011 10:03am Feb 22, 2011 10:03am
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'm not bothered with a minimum number of bars, as if you break the time frame 1 lower down then you will always end up with the minimum number of bars...

maybe it's required for the 5M time frame,i don't particulary enjoy the 5 minute time frame and like to have my trades my structured at support/resistance points


basically it needs to look right, which i know is quite subjective, but if you have to force a pattern then it shouldn't be worthy of your consideration...

i do like my 2 point to have a sharp and pronounced movement away from 1 and i like to see breaks of trend lines but that is just me...
Catching a falling knife, no, I'm just trading the Gartley!
  • #1,324
  • Feb 22, 2011 10:05am Feb 22, 2011 10:05am
Quoting ChinaWombat
what a silly comment....what do you think the forums are about...people are doing research by asking questions, which by definition is what research is, asking questions...

you combine the answers and then sift out what does and doesn't work for your own particular circumstances and build your trading plan around it
yes, i know what u mean.

but thats the point: i, as a trader for a living, am asking myself and doing the research myself. you can find hints to develope your own style in forums, but you will not find the answers-they are all in you.
trading is like dancing, don't think and just listen to the music!
  • #1,325
  • Feb 22, 2011 11:07am Feb 22, 2011 11:07am
Quoting birdland
yes, i know what u mean.

but thats the point: i, as a trader for a living, am asking myself and doing the research myself. you can find hints to develope your own style in forums, but you will not find the answers-they are all in you.
ok got it, maybe just a matter of misconstrued nuance....actually the answers are all outside of you... it's whether or not you allow them in that determines your trading fluencey....you have to expunge a number of bad habits to make room for the answers ( i prefer the word solution)

happy trades...
Catching a falling knife, no, I'm just trading the Gartley!
  • #1,326
  • Feb 22, 2011 5:38pm Feb 22, 2011 5:38pm
Quoting sean007
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...
muticharts is tradestation's easy language--right?
  • #1,327
  • Feb 22, 2011 5:49pm Feb 22, 2011 5:49pm
Quoting simpletrades
muticharts is tradestation's easy language--right?
Yes Multicharts uses Tradestation easylanguage
Dream big, start small. Have it all
  • #1,328
  • Feb 23, 2011 6:31am Feb 23, 2011 6:31am
Here's a pic of a 3 in 1 bar pattern. ive drawn lines to show where my entry and exit was. + 15 pip trade. I use a 1:1 ratio. This pattern can be used on any tf.
Attached Image (click to enlarge)
Click to Enlarge Name: 3in1 bar trade eu 23022011.jpg Size: 60 KB
  • #1,329
  • Feb 23, 2011 6:37am Feb 23, 2011 6:37am
Quoting autotrader
Here's a pic of a 3 in 1 bar pattern. ive drawn lines to show where my entry and exit was. + 15 pip trade. I use a 1:1 ratio. This pattern can be used on any tf.
nice, but thats an IB-pattern and completely different to the original 1-2-3 or ross hook pattern discussed in this thread
trading is like dancing, don't think and just listen to the music!
  • #1,330
  • Feb 23, 2011 6:47am Feb 23, 2011 6:47am
Quoting birdland
nice, but thats an IB-pattern and completely different to the original 1-2-3 or ross hook pattern discussed in this thread
Not to be arsey or anything but I did say its a 3 in 1 bar pattern
I am fully aware of whats in this thread lol. If sharing what I know is going to have silly comments about it then fair play ill stop posting. Felt this pattern had some relevance to PA traders on this thread. Take care all
  • #1,331
  • Feb 23, 2011 6:49am Feb 23, 2011 6:49am
Without wishing to complicate a very straightforward system, I just wanted to add a couple of filters which work for me.

I primarily use the M5 timeframe, and so I try to ensure that the point 3 occurs after LO. That way you don't tend to get sucked into any fake moves.

The second filter negates Paulus' alternate long/shorts, but I find helps to keep me out of those little trades which trigger and then turn around! In essence, I put a 200SMA and the daily pivot points on my charts. If price is above both the 200 and the DP then we only look for longs and vice versa for shorts. If price is between the pivot and the 200 then we may range until one or the other is broken.

I'm not trying to change a good system, just posting some ideas which may cut down on the number of trades available, but which may improve their profitability.
  • #1,332
  • Feb 23, 2011 6:51am Feb 23, 2011 6:51am
Quoting autotrader
Not to be arsey or anything but I did say its a 3 in 1 bar pattern
I am fully aware of whats in this thread lol. If sharing what I know is going to have silly comments about it then fair play ill stop posting. Felt this pattern had some relevance to PA traders on this thread. Take care all

All contributions are welcome!
  • #1,333
  • Feb 23, 2011 6:52am Feb 23, 2011 6:52am
Quoting Delite
Without wishing to complicate a very straightforward system, I just wanted to add a couple of filters which work for me.

I primarily use the M5 timeframe, and so I try to ensure that the point 3 occurs after LO. That way you don't tend to get sucked into any fake moves.

The second filter negates Paulus' alternate long/shorts, but I find helps to keep me out of those little trades which trigger and then turn around! In essence, I put a 200SMA and the daily pivot points on my charts. If price is above both the 200 and the DP then we only look...
Trade what works for you... others have posted what works for them and it's up to you to build off it.
Today's zone = Tomorrow's opportunity!
  • #1,334
  • Feb 23, 2011 7:10am Feb 23, 2011 7:10am
Quoting Delite
All contributions are welcome!
all right, here is a nice 1-2-3 flag that worked out for me this morning for +18pips
Attached Image (click to enlarge)
Click to Enlarge Name: Bildschirmfoto 2011-02-23 um 14.09.24.png Size: 68 KB
trading is like dancing, don't think and just listen to the music!
  • #1,335
  • Feb 23, 2011 7:19am Feb 23, 2011 7:19am
Quoting Delite
Without wishing to complicate a very straightforward system, I just wanted to add a couple of filters which work for me.

I primarily use the M5 timeframe, and so I try to ensure that the point 3 occurs after LO. That way you don't tend to get sucked into any fake moves.

.
LO ?
  • #1,336
  • Feb 23, 2011 7:20am Feb 23, 2011 7:20am
Quoting simpletrades
LO ?
London Open
Today's zone = Tomorrow's opportunity!
  • #1,337
  • Feb 23, 2011 8:34am Feb 23, 2011 8:34am
fast +11 pips from EU so far on this beauty.
Attached Image (click to enlarge)
Click to Enlarge Name: Bildschirmfoto 2011-02-23 um 15.32.57.png Size: 34 KB
trading is like dancing, don't think and just listen to the music!
  • #1,338
  • Feb 23, 2011 9:18am Feb 23, 2011 9:18am
another +28 from UCH and + 43 from UCAD
so far a good day and in plan.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Bildschirmfoto 2011-02-23 um 16.14.45.png Size: 48 KB
Click to Enlarge Name: Bildschirmfoto 2011-02-23 um 16.15.42.png Size: 51 KB
trading is like dancing, don't think and just listen to the music!
  • #1,339
  • Feb 23, 2011 9:19am Feb 23, 2011 9:19am
Quoting birdland
another +28 from UCH and + 43 from UCAD
so far a good day and in plan.
Great trading... profitable day.
Today's zone = Tomorrow's opportunity!
  • #1,340
  • Feb 23, 2011 10:56am Feb 23, 2011 10:56am
Pres, belated congratulations and maybe the sleepless nights mean you get to trade the London session

Did some back testing on my tick chart method and what seems to work best are 2 setups.
1. The Frankfurt Fakeout. Chart attached from today. We get a break above the Asian high followed by an immediate retrace. Tends to be around 7.30am GMT. Sets up about twice a week and gives 1:2 Risk:Reward. However if the price action is slow like today then just take 1:1
2. London Open 123. Best when the 123 is right at one edge of the 15min H/L like yesterdays chart I posted. Today wasn't valid as a) very messy looking PA and b) the 2 point was very near the top of the range.
Attached Image (click to enlarge)
Click to Enlarge Name: eur-tick-ff-23-feb11.jpg Size: 141 KB
Dream big, start small. Have it all
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