here's an entry i took 11 min ago at 10 am est, i exited when it bounced down from the 161.8. i settled for 17 pips.
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How to use the 123 strategy effectively
- #1,383
- Mar 3, 2011 9:27pm Mar 3, 2011 9:27pm
- Joined Sep 2010 | Status: Trader | 2,034 Posts
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...
Hi FX1962, This is THX1138.. (kidding
)I'm trying to figure out if I've been up to long, or are you drawing your fibs upside down?
I saw that on Paulus charts alot too, but he said it was a mistake, but then he kept it up. If this is intentional, why not just draw the fibs the normal way and call it a 38% retrace?
Thanks
- #1,384
- Mar 5, 2011 3:33am Mar 5, 2011 3:33am
Hi diamond,
I know what you're saying about fibs, for me this is just the easiest way to read them and find profit targets, it all comes to the same thing, you just need to know which way you're plotting them.
Nice move on the H1 CADCHF here.
I know what you're saying about fibs, for me this is just the easiest way to read them and find profit targets, it all comes to the same thing, you just need to know which way you're plotting them.
Nice move on the H1 CADCHF here.
++++++++++++++++++++++++++++++++
Hi FX1962, This is THX1138.. (kidding
I'm trying to figure out if I've been up to long, or are you drawing your fibs upside down?
I saw that on Paulus charts alot too, but he said it was a mistake, but then he kept it up. If this is intentional, why not just draw the fibs the normal way and call it a 38% retrace?
Thanks
- #1,391
- Mar 7, 2011 9:36am Mar 7, 2011 9:36am
- Joined Aug 2010 | Status: absolute beginner | 5,464 Posts
trading is like dancing, don't think and just listen to the music!
- #1,393
- Mar 7, 2011 10:15am Mar 7, 2011 10:15am
- Joined Aug 2010 | Status: absolute beginner | 5,464 Posts
trading is like dancing, don't think and just listen to the music!
- #1,396
- Mar 7, 2011 5:15pm Mar 7, 2011 5:15pm
Hi Diamond
so if i understand your philosophy correctly, we take the High / Low of the AS, if after the AS the High is broken, then we assume the AS was in uptrend and mark the broken high as 1 and are looking for shorts.
if after the AS the Low is broken then we assume the AS was in downtrend, mark the broken low as 1 and are now looking for longs
If the rule really is that mechanical, i think i might actually understand it finally
so if i understand your philosophy correctly, we take the High / Low of the AS, if after the AS the High is broken, then we assume the AS was in uptrend and mark the broken high as 1 and are looking for shorts.
if after the AS the Low is broken then we assume the AS was in downtrend, mark the broken low as 1 and are now looking for longs
If the rule really is that mechanical, i think i might actually understand it finally
- #1,397
- Mar 8, 2011 12:22am Mar 8, 2011 12:22am
- Joined Sep 2010 | Status: Trader | 2,034 Posts
Hi Diamond
so if i understand your philosophy correctly, we take the High / Low of the AS, if after the AS the High is broken, then we assume the AS was in uptrend and mark the broken high as 1 and are looking for shorts.
if after the AS the Low is broken then we assume the AS was in downtrend, mark the broken low as 1 and are now looking for longs
If the rule really is that mechanical, i think i might actually understand it finally
That's pretty much it, to the extent of my knowledge.
I'm certain you already are aware of this;
Don't mark any numbers until you have a bona fide Swing.
- #1,399
- Mar 8, 2011 1:18am Mar 8, 2011 1:18am
- Joined Sep 2010 | Status: Trader | 2,034 Posts
As promised here are the euro dollar set ups from yesterday. One slight change, I stated there were 5 E/U trades... 
er.. ah, there were only two. But I knew that, just wanted to see if anyone was paying attention enough to call me on it. 
Chart 1 = 50 pip Run
OK, the 1st one produced a valid #1 @ 8:05 gmt. The charts I using to show here are gmt +2 so don't let the numbers at the bottom confuse you. Confusion is solely the job of the Brokers! Once price punched up thru the 0% it continued on for 50 pips.
Chart 2 = No Trade
Originally I saw this as a 123 trade. Upon closer inspection I found that there was but one candle separating #2 from #3, and even though that would have been a profitable trade, we must stick to rules to help filter out potential losses. I'm not saying "Don't trade set ups like this", it's just that I've seen more failures in one candle separations.
My 2¢ Dept.: If 3 consecutive candles were all on the same 15 min candle, then all of those traders that never venture down into the slums of the 5 min and lower range, would not be given an opportunity to get emotional about what we may be banking on.
Chart 3 = 24 pip Run
#1 was marked @ 12:00 gmt. This one went a full hour prior to giving us a valid swing for #2.
Chart 4 = No Trade
This was another trade I initially saw as a valid set up. The problem with this one is my horizon was skewed by a small margin of 180º.
By the time I was looking at this set up it was 6am here on the US west coast, and I had been up all night. At least I didn't have money on it. Whew!
Mistakes can and do happen. When I have time and I'm not trading a go over many different charts by revealing only one candle at a time and deciding if I see an entry or not. Practice practice practice. This is how you get good, better, best and superior. The competition here is quite stiff!
"Often we allow ourselves to be upset by small things we should despise and forget. We lose many irreplaceable hours brooding over grievances that, in a year's time, will be forgotten by us and by everybody. Now, let us devote our life to worthwhile actions and feelings, to great thoughts, real affections and enduring undertakings."
Andre Maurois
1885-1967, Writer
er.. ah, there were only two. But I knew that, just wanted to see if anyone was paying attention enough to call me on it. Chart 1 = 50 pip Run
OK, the 1st one produced a valid #1 @ 8:05 gmt. The charts I using to show here are gmt +2 so don't let the numbers at the bottom confuse you. Confusion is solely the job of the Brokers! Once price punched up thru the 0% it continued on for 50 pips.
Chart 2 = No Trade
Originally I saw this as a 123 trade. Upon closer inspection I found that there was but one candle separating #2 from #3, and even though that would have been a profitable trade, we must stick to rules to help filter out potential losses. I'm not saying "Don't trade set ups like this", it's just that I've seen more failures in one candle separations.
My 2¢ Dept.: If 3 consecutive candles were all on the same 15 min candle, then all of those traders that never venture down into the slums of the 5 min and lower range, would not be given an opportunity to get emotional about what we may be banking on.
Chart 3 = 24 pip Run
#1 was marked @ 12:00 gmt. This one went a full hour prior to giving us a valid swing for #2.
Chart 4 = No Trade
This was another trade I initially saw as a valid set up. The problem with this one is my horizon was skewed by a small margin of 180º.
By the time I was looking at this set up it was 6am here on the US west coast, and I had been up all night. At least I didn't have money on it. Whew!Mistakes can and do happen. When I have time and I'm not trading a go over many different charts by revealing only one candle at a time and deciding if I see an entry or not. Practice practice practice. This is how you get good, better, best and superior. The competition here is quite stiff!
"Often we allow ourselves to be upset by small things we should despise and forget. We lose many irreplaceable hours brooding over grievances that, in a year's time, will be forgotten by us and by everybody. Now, let us devote our life to worthwhile actions and feelings, to great thoughts, real affections and enduring undertakings."
Andre Maurois
1885-1967, Writer
