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

Quoting simpletrades
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...
thank you simpletrades!
thats an interesting point, i will watch the thread you mentioned.
I know that you and I know nothing...and don't think!
Quoting birdland
thank you simpletrades!
thats an interesting point, i will watch the thread you mentioned.
right, 3 am EST is tough on you in Antigua, too.
he had 2 threads on it, the first he ended because people kept going off topic with posts and shots of other indicators, then he moved it to a new thread last august, if you need the link you can pm me.
i think we have now two valid shorts on both EU and GU.
I know that you and I know nothing...and don't think!
Quoting birdland
i think we have now two valid shorts on both EU and GU.
just killed my pending gu entry when it reversed again.
i noticed the would be entry area has been strong support 4 times since last evening.
Quoting simpletrades
just killed my pending gu entry when it reversed again.
i noticed the would be entry area has been strong support 4 times since last evening.
I'm guessing you mean 1.6255 area. This is last Thursday high (3DH). I've mentioned this before but the previous 4 days lows and highs are very good levels of support and resistance and worth marking on your charts
Dream big, start small. Have it all
Quoting simpletrades
just killed my pending gu entry when it reversed again.
i noticed the would be entry area has been strong support 4 times since last evening.
yes, me too. tough day
I know that you and I know nothing...and don't think!
Quoting sean007
I'm guessing you mean 1.6255 area. This is last Thursday high (3DH). I've mentioned this before but the previous 4 days lows and highs are very good levels of support and resistance and worth marking on your charts
i know, i watch this "ross areas" also.
but when you trade the main idea, S&R has no value here and is not included in making the decision.
we take it black or white
I know that you and I know nothing...and don't think!
Quoting sean007
I'm guessing you mean 1.6255 area. This is last Thursday high (3DH). I've mentioned this before but the previous 4 days lows and highs are very good levels of support and resistance and worth marking on your charts
yes i did mean that area, although i was only counting my 4 tests from 6 pm EST last night right up thru the 8:40 EST reversal again this morning, although looking back now it failed a whole bunch more times near there on the 5 min since that time.
I'm using my own modified version of the 123 based on Cubby's original, (Profit all day thread) if anyones interested this is my setup.
I only ever use the H1 or above as I find the lower time frames just too unreliable.
I'm only looking for a 123 reversal.
There must be at least 2 bars between 1&2 and 2&3.
I use Fibonacci for 2 indications, at least a pull back to the 61.8 level (using 1 as the 0% and 2 as the 100%) and also for profit levels, I'm looking for a 200% up from the original swing (100% profit from entry point 2), if the 200% (from point 1) is hit and the trends looking strong I move up my stop and let it ride.
I want to see the CCI below or above the 90/-90 at the point of entry and ideally a cross of the ADX in the direction of the trade and between the 20/40 level although this is flexible, if it looks near I'll take it.
I also want the ma's looking in the right direction (because I'm trading on a reversal I'm not looking at the ma's in the higher time frame).
If all these conditions are met I feel pretty confident of a 100% profit, using 1 as the stop (+/- 3 points and spread)
Attached an ideal trade (notice how the price pulls back to nearly touch the 61.8 then carries back down)
All comments welcomed!
Attached Image (click to enlarge)
Click to Enlarge Name: 123.gif Size: 27 KB
Quoting forex1962
I'm using my own modified version of the 123 based on Cubby's original, (Profit all day thread) if anyones interested this is my setup.
I only ever use the H1 or above as I find the lower time frames just too unreliable.
I'm only looking for a 123 reversal.
There must be at least 2 bars between 1&2 and 2&3.
I use Fibonacci for 2 indications, at least a pull back to the 61.8 level (using 1 as the 0% and 2 as the 100%) and also for profit levels, I'm looking for a 200% up from the original swing (100% profit from entry point 2), if the 200% (from...
very interesting comment!
how long have you been trading this setup ?
I know that you and I know nothing...and don't think!
Quoting forex1962
I'm using my own modified version of the 123 based on Cubby's original, (Profit all day thread) if anyones interested this is my setup.
I only ever use the H1 or above as I find the lower time frames just too unreliable.
I'm only looking for a 123 reversal.
There must be at least 2 bars between 1&2 and 2&3.
I use Fibonacci for 2 indications, at least a pull back to the 61.8 level (using 1 as the 0% and 2 as the 100%) and also for profit levels, I'm looking for a 200% up from the original swing (100% profit from entry point 2), if the 200% (from...
is my math wrong or were you in the trade for 2 days for 45 pips?
i know i would have typically bailed during some of those retraces back towards 61.8 even if it were a 5 min chart not an hrly one.
Quoting forex1962
I'm using my own modified version of the 123 based on Cubby's original, (Profit all day thread) if anyones interested this is my setup.
I only ever use the H1 or above as I find the lower time frames just too unreliable.
I'm only looking for a 123 reversal.
There must be at least 2 bars between 1&2 and 2&3.
I use Fibonacci for 2 indications, at least a pull back to the 61.8 level (using 1 as the 0% and 2 as the 100%) and also for profit levels, I'm looking for a 200% up from the original swing (100% profit from entry point 2), if the 200% (from...
Glad it works for you but it's too complicated looking for my liking.

Best of luck.
Today's zone = Tomorrow's opportunity!
Not really complicated, once you have the basic strategy worked out it runs like clockwork.
Yes that trade was a slow burner, I used this one as an illustration as it was a very clear chart, profits can be good, especially on the higher time frames.
You can use the 61.8 as an exit if you're a more conservative trader or worried about the trend weakening.
I've tried so many different systems all with varying degrees of success, or failure, but none that really have the consistency of this.
Quoting forex1962
Not really complicated, once you have the basic strategy worked out it runs like clockwork.
Yes that trade was a slow burner, I used this one as an illustration as it was a very clear chart, profits can be good, especially on the higher time frames.
You can use the 61.8 as an exit if you're a more conservative trader or worried about the trend weakening.
I've tried so many different systems all with varying degrees of success, or failure, but none that really have the consistency of this.
Well as long as it's consitant for you then that's all that matters.
Today's zone = Tomorrow's opportunity!
Quoting forex1962
I'm using my own modified version of the 123 based on Cubby's original, (Profit all day thread) if anyones interested this is my setup.
I only ever use the H1 or above as I find the lower time frames just too unreliable.
I'm only looking for a 123 reversal.
There must be at least 2 bars between 1&2 and 2&3.
I use Fibonacci for 2 indications, at least a pull back to the 61.8 level (using 1 as the 0% and 2 as the 100%) and also for profit levels, I'm looking for a 200% up from the original swing (100% profit from entry point 2), if the 200% (from...

Why did you ignore the fractal between your point 1 and 2
There must be at least 2 bars between 1&2

Quoting FOURX
Why did you ignore the fractal between your point 1 and 2
one loss, one win,
trying it again now short EU.
Attached Image (click to enlarge)
Click to Enlarge Name: Bildschirmfoto 2011-03-02 um 15.31.15.png Size: 33 KB
I know that you and I know nothing...and don't think!
Quoting forex1962
Not really complicated, once you have the basic strategy worked out it runs like clockwork.
Yes that trade was a slow burner, I used this one as an illustration as it was a very clear chart, profits can be good, especially on the higher time frames.
You can use the 61.8 as an exit if you're a more conservative trader or worried about the trend weakening.
I've tried so many different systems all with varying degrees of success, or failure, but none that really have the consistency of this.
i am curious, so may i ask you,

what is for you consistency and how long does the system work for you?
I know that you and I know nothing...and don't think!
Quoting birdland
i am curious, so may i ask you,

what is for you consistency and how long does the system work for you?
I started using Cubby's method a couple of months ago but didn't have a lot of success, I found I was entering trades too late and the trend would would reverse on me.
After much thought and reading other 123 methods this is what I found works best for me, it can be tedious waiting for the entries but I have a price alert on potential trades which helps so you don't have to be glued to your computer
I now only use H1 or above for clearer signals.
Consistency for me is all about making a profit, most of these setups work for me, it's not a clear cut % as potential profits can vary enormously, I work on a 2-3% of bank risk, but if a trade runs and runs thats great.
Quoting forex1962
I started using Cubby's method a couple of months ago but didn't have a lot of success, I found I was entering trades too late and the trend would would reverse on me.
After much thought and reading other 123 methods this is what I found works best for me, it can be tedious waiting for the entries but I have a price alert on potential trades which helps so you don't have to be glued to your computer
I now only use H1 or above for clearer signals.
Consistency for me is all about making a profit, most of these setups work for me, it's not a clear...
thx for your comment, sounds good.
I know that you and I know nothing...and don't think!
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