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How to use the 123 strategy effectively

  • #1,341
  • Feb 23, 2011 9:06am Feb 23, 2011 9:06am
Quoting sean007
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...
Many thanks my friend... Nice analysis and way to make this system your own. Nights haven't been bad... two weeks old today and she is sleeping 3-4 hrs at a time.
Today's zone = Tomorrow's opportunity!
  • #1,342
  • Feb 24, 2011 2:56am Feb 24, 2011 2:56am
so far two trades in GU with +34 and +24 pips.
no trade on EU.
trading is like dancing, don't think and just listen to the music!
  • #1,343
  • Feb 24, 2011 3:04am Feb 24, 2011 3:04am
very bearish H1 1-2-3 pattern on GU.
we have 2 powerful longterm trendlines also for a confimation trade setup.
this could also lead to a daily 1-2-3 setup
Attached Image (click to enlarge)
Click to Enlarge Name: Bildschirmfoto 2011-02-24 um 12.00.12.png Size: 51 KB
trading is like dancing, don't think and just listen to the music!
  • #1,344
  • Edited 4:52pm Feb 25, 2011 4:42pm | Edited 4:52pm
[quote=pres78;4419811]Here is a trade I entered a short time ago... Never traded this before so we will see...

quote]
i cant get CL bars after tues at the 230 pm close of oil trading.
using ninja 6.5 demo with zenfire and tried it on ninja 7.0 demo with CQG. your chart is from 2/22 but have you been live after tuesday?
  • #1,345
  • Feb 26, 2011 7:07am Feb 26, 2011 7:07am
[quote=simpletrades;4431012]
Quoting pres78
Here is a trade I entered a short time ago... Never traded this before so we will see...

quote]
i cant get CL bars after tues at the 230 pm close of oil trading.
using ninja 6.5 demo with zenfire and tried it on ninja 7.0 demo with CQG. your chart is from 2/22 but have you been live after tuesday?
Yes
Today's zone = Tomorrow's opportunity!
  • #1,346
  • Feb 26, 2011 8:07am Feb 26, 2011 8:07am
[quote=pres78;4431474]
Quoting simpletrades

Yes
with whom? mirus and amp were the 2 brokers for my demo feeds and both had no feed.
  • #1,347
  • Feb 26, 2011 11:48am Feb 26, 2011 11:48am
[quote=simpletrades;4431513]
Quoting pres78
with whom? mirus and amp were the 2 brokers for my demo feeds and both had no feed.
I trade with Tadawul FX...
Today's zone = Tomorrow's opportunity!
  • #1,348
  • Feb 26, 2011 5:15pm Feb 26, 2011 5:15pm
pres78...

looks like you really got this 1 2 3 ....why dont you trade full time...spend more time with your family.

good luck.
  • #1,349
  • Feb 27, 2011 7:06am Feb 27, 2011 7:06am
Quoting ForexSV
pres78...

looks like you really got this 1 2 3 ....why dont you trade full time...spend more time with your family.

good luck.
Not enough money to invest to make a career of it.
Today's zone = Tomorrow's opportunity!
  • #1,350
  • Feb 28, 2011 2:53am Feb 28, 2011 2:53am
last weeks result were quite impressive, 8 wins, 4 losses.

because i am learning this method, (mainly paulus one) i risk only 1% per trade.

when i see some progress and confirming in my trading i will adapt it to what i see or what i thing can also work in my trading.

thanks paul so far, also for the rational and clear explanation, thats seldom here.

today my first trade was a loss i want to show u:
1-2-3 on EU, 2 bars in between, but what i recognized was the strong shoot up which formed the point 3.
Attached Image (click to enlarge)
Click to Enlarge Name: Bildschirmfoto 2011-02-28 um 11.47.43.png Size: 36 KB
trading is like dancing, don't think and just listen to the music!
  • #1,351
  • Edited 5:58am Feb 28, 2011 5:36am | Edited 5:58am
Quoting birdland
today my first trade was a loss i want to show u:
1-2-3 on EU, 2 bars in between, but what i recognized was the strong shoot up which formed the point 3.
i actually got up for the 3am EST london open and had that set up with my fibs but passed since there was only about 10 pips to the 161.8 point from the #2 and about 20 to the 200 point for TP's. There just didnt seem enough need to wait for it so i went back to bed.
I do wish i had stayed until closer to 4 am for the long entry using paulus' TM.

i try to get up for the London open and watch for 1-2-3 setting up or a TM entry but if nothing looks good or worth the effort i go back to bed between 3:30 and 3:45am.
  • #1,352
  • Feb 28, 2011 5:59am Feb 28, 2011 5:59am
Quoting simpletrades
i actually got up for the 3am EST london open and had that set up with my fibs but passed since there was only about 10 pips to the 161.8 point from the #2 and about 20 to the 200 point for TP's. There just didnt seem enough need to wait for it so i went back to bed.
I do wish i had stayed until closer to 4 am for the long entry using paulus' TM.
dont worry, from paulus view i think it was not a valid long on GU (i guess thats what you mean) because of the asian session rule.
we got out there at the high of the session, so we where looking for shorts and not for longs (if u follow paulus rules)
trading is like dancing, don't think and just listen to the music!
  • #1,353
  • Feb 28, 2011 9:20am Feb 28, 2011 9:20am
no signal today so far
trading is like dancing, don't think and just listen to the music!
  • #1,354
  • Feb 28, 2011 9:50am Feb 28, 2011 9:50am
Quoting birdland
no signal today so far
did you take that trade EU short, right after LO opens?
  • #1,355
  • Feb 28, 2011 10:37am Feb 28, 2011 10:37am
Quoting ForexSV
did you take that trade EU short, right after LO opens?
yes, i took it 38min after london open. it was a loss. see the chart above.
trading is like dancing, don't think and just listen to the music!
  • #1,356
  • Feb 28, 2011 3:23pm Feb 28, 2011 3:23pm
Hi, perhaps somebody can help me. When looking for a short does point 2 have to be the lowest point after point 1 with a minimum of 2 bars between 1 and 2 prior to point 3 being established. So if I had established point 1 and 2 and the price retraced the 38.2/61.8 fib but with only 1 bar between itself and point 2 and then moved below point 2 would I look to move point 2 to the new low and then look for another retrace to establish point 3. Thanks
  • #1,357
  • Feb 28, 2011 3:54pm Feb 28, 2011 3:54pm
Quoting Tkd
Hi, perhaps somebody can help me. When looking for a short does point 2 have to be the lowest point after point 1 with a minimum of 2 bars between 1 and 2 prior to point 3 being established. So if I had established point 1 and 2 and the price retraced the 38.2/61.8 fib but with only 1 bar between itself and point 2 and then moved below point 2 would I look to move point 2 to the new low and then look for another retrace to establish point 3. Thanks
Not sure what you were asking with your wording but see attached an example of a good 123 short set-up...
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.jpg Size: 99 KB
Today's zone = Tomorrow's opportunity!
  • #1,358
  • Feb 28, 2011 4:08pm Feb 28, 2011 4:08pm
Thank you, so point 2 does have to be the lowest point between point 1and 3, and point 3 would be the highest point between point 2 and hopefully the entry when the level of 2 is broken.
  • #1,359
  • Feb 28, 2011 5:53pm Feb 28, 2011 5:53pm
Quoting birdland
dont worry, from paulus view i think it was not a valid long on GU (i guess thats what you mean) because of the asian session rule.
we got out there at the high of the session, so we where looking for shorts and not for longs (if u follow paulus rules)
i didnt mean the long from a 1-2-3 point of view, although the entry from looking back now was close. The break of 2 was the 3:45 am EST bar and the point 1 bar was the 2:55 am bar which technically wasnt London but was 55 min after germany. That aside, i was actually referring to Paulus' other thread-Trend Magic which i watch more more around London's open since it doesnt require a minimum of 30 minutes (6 5min bars) to pass between point 1 and an entry on or after point 3 (which can be the retrace to 61.8 on one end and the break of point 2 at the other end) and i get to go back to bed quicker.
  • #1,360
  • Feb 28, 2011 5:56pm Feb 28, 2011 5:56pm
Quoting Tkd
Thank you, so point 2 does have to be the lowest point between point 1and 3, and point 3 would be the highest point between point 2 and hopefully the entry when the level of 2 is broken.
Short trade, point 1 highest, point 2 lowest and point 3 retrace and MUST be lower than point 1 other wise it is a failed set-up.
Today's zone = Tomorrow's opportunity!
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