123PatternsV6 revisited

move from 1-2 is 88 pips (strong)
move from 2-3 is only 45 pips (not strong)

If the market is turning there are often a couple of days when the big guys turn off the sells, the rest of the market is still selling. IF this is a turn the big boys will start buying, they can't buy all at once they have too much ammo. So a turn will often have its own D 1 2 3 (with rsi divergence for those that watch it). We haven't seen those patterns yet.

You traded a big pic 1 2 3, make your candles much bigger and you'll see the smaller 1 2 3's. IMHO after your entry there was a distinct 1 2 3 lower high which might have given warning of a failure to move up and you could have gotten out with a smaller loss, or IF you believe the market IS turning you'd need stop below the D's low.

As Rob has mentioned we could easily be headed lower looking for a D dble bottom, 1 2 3 high before the move up really begins.

First of all a little story. Islander a superb trader, I asked him how he did so well trading 1 min time frames at certain specific times of day. He said 10,000 hours of chart time. He was looking back all the time to perfect his entry requirements and his methods.

Moving on.

Trend (and therefore ranging markets) are time frame dependent, what may be ranging on 4hr might give great opportunities on 1hr/5 min. Looking at the chart post 135. The market hasn't had a real pullback on D chart yet, no real 1 2 3. As some pullback is likely still I would look at the distance from high to low for that trade, the market has moved a long way to take an entry there on what is not yet a confirmed upward trend.

Just my view, until trend is confirmed up on D chart I would be looking at lower time frames for opp's to get entries much closer to turn points.

Hi guys!
Interested indicator. I have backtested with M1 and result are great. Did anybody make it like EA? Or anybody can do? :-)

Hi every body
very nice 123 bearish pattern in H4 in eurusd

Just showing as an example again in using MTF to assist in a trade.

D yesterday had a doji that could not break Wed's high. This is the kind of candle we would look for to confirm a poss move down back into the trend.

I hr red neg close candle with large upper wick, confirming the view of D candle.

2 nice 1 2 3's follow.

Now IF the market is headed up after all, then over next few days we would need to see a D 1 2 3 with a low around 1.3200 or above. Only TWT what happens. So now its back to sell mode until there is evidence on D chart of a 1 2 3 bottom.

Hi Robdee

Can you advise if theres any change's to the 123 indicator if Iam to use it on say the 15min TF..or 1 hour.

Iam running the indicator on 5 min at : zigzag 12, retrace depth min 0.4, retrace depth max 1.0

Thankyou

Glenn

G'day Glenn, welcome to the thread. Those 5min settings you are using are the same as my basic settings I use on 5min and 4hour. I expect that those settings will also work fine on 15 min and 1 hour. At least as a good baseline. I did a lot of tweaking last year trying to find better settings but never found anything more reliable than those defaults.

ZigZag=12 makes sense on 5min because 12 candles = 1 hour.
ZigZag=12 makes sense on 4hr because 12 candles = 48 hours.

Thanks Robdee..

I lived in Auckland for 30 years before moving to Aussie....hows it going?

Glad to see John got back in.

I have studied 123, TTE and ross hook for years, so your indicator fits in well...

Any advise on trading using the indicator would be of intrest....so far I have traded the setup for a few weeks on 5 min...in the first few hours of london session and so far 100% winners...

Thanks

Glenn

Hi Rob

Thanks for your efforts here. I am not in a position to watch the indi live at the moment. My apologies then for any stupidity that follows as a result.

I have shown the 8lwma and fozzy 8 rsi with 8 sma overlay just to compare your indi with what I would typically be looking for.

OK first chart shows red line where 1 hr closed in line with my view of daily. So from there the bias is negative. PS I became indi averse but put fozzy back on for divergence as I found that helped with distorted trades, then the co-incidence of solid set ups with fozzy crosses became apparent.

Second chart shows the areas where I would be looking to get in. You'll see that on the right hand trade I would have been looking to enter 1 candle earlier.

EA suggestions for discussion:

1) Is it feasible to have options to take a view of the market and have sell only, buy only, show all trades? That way if you have the time you could look at computer at close of 1hr candle and see if confirms view of market and choose (in these charts as an example) sell only after the red line 1hr close. Therefore you could avoid some poss fake out sells when 1 hr had not yet 'flipped' over in line with the daily. I have purposely not asked this question earlier, I wanted to post a few charts with HTF's lining up so you would now see what I was thinking.

2) In the 2nd pic after close of 1hr the left red line shows where I'd be looking to enter (close of candle that has opened above closed below the 8lwma, fozzy crossed lower nice to have) 1 pip or so below the close of the candle. In this case as candle closed below 2 point EA agrees.

The right red line, I'd be looking to enter 1 candle before the EA. That's about a 20 pip difference in entry, it didn't hurt this time but often that size later entry as you know could be the diff between success and failure. Is it feasible to code an option where if candle closes (for a sell in this case) with little/no lower wick (I use ballpark 3 pips), close to (but above) the orange red line at point 2 (again say ballpark 3 pips) that trades would be signalled when 2 point is broken with 1 pip?

I trust that this is clear.

Cheers.

glenn are you trading the breakout of point 2 or the retracement back after the breakout .
Could post some of your entries thanks

Only the retracement, with a entry as per TTE....so Iam in the trade before point 3...
well I try to be, doesnt all ways work as per the plan...

I also work out a TP based on point 2 minus point 3....the balance multiply by .618...

Sorry I dont have a lot of time to spend in forums...

EDIT sorry point 2

Glenn

thanks for reply corrected my question I meant the breakout of point2 (not point3 ) but i think your answer is the same anyway

hey and welcome to the thread :-)

i would just like to comment. i do the same on entry, see the break of point 2, watch for the TTE zone and have orders there to take me in at that point.

however i do calculate the distance of TP differently. taking the distance from point 2 to point 3 as the target, from point 2. as such if my TTE zone
equals rr 1:3 or greater on that trade i will take it.

example: TP is 30 from point2, TTE zone says i risk 15 until point 3 then that is risking 15 to get 45 hence 1 for 3.
if the case is that my TP is greater then 30 as point2 would be another value then i consider that as an even greater opportunity and strongly consider moving my target even further, as per always keeping my 1 for 3 mentality. greater is only bonus though, hope you understand this :-)

as for the part where it does not always work i do this; if the cci(200) is > 100, on long side in this example, at the point 2 of the 123 pattern then that point 2 is acceptable. if not then it isn't. this thinking can be applied differently with other indicators set to other numbers. it is just something i've found to be working for the moment and it is only my interpretation. i think somebody wrote about it in this thread also, though i cannot find it atm.

// meatball :-)

Hi Guys,
Great thread, I use a 123 break pattern along with CCI and a 60sma, really only looking to trade with the sma for direction and CCI for confirmation.
I find H4 suits my life style but applies to all time frames, just make sure the sma is in agreement one time frame higher.

Thanks for that...I will look at your CCI method....do you change the cross line " 100" or cci(200) for different TF's...
I was refering to the TTE ideal of three candles then the turn....fourth candle contiunes then the move will contiune...
Therefore its not always possible to get the three candles before the retracement zone...
So Iam intrested in looking at the CCI setup.

Sorry if this is off thread Robdee
Thanks
Glenn

Here is an example of my Basic Setup with Fibo Targets and CCI(144) on 5min charts.
CCI(144) represents a 12 hour cycle so fits the intraday scenarios well.

With Fibos, CCI, and TTE this is getting more significantly more advanced than simple setups I've posted previously.


Note: Click on this chart (3-times in Firefox) to see full size image

In Friday's scenario 4:30GMT was the optimal entry.

Assuming a bullish trend, I look for a pullback into oversold (CCI below -125).
Then I'm looking for a TTE entry that allows me to enter before the next point 2 is broken.

Rob any chance you could make you charts clearer with some thicker cci lines and darker colours.

For what its worth I'll post same charts with 2 of the set ups we use.

Pls note the diff in pips when market goes from counter trend back to trend.

2 of the basic set ups we'll trade.

3 ma's nicely stacked. I have shown the candles we'd like to trade when they close as they have positive closes with little/no upper wick. They are counter trend to the daily down trend. They were close to the round number so would probably pass.

In both trades we would be looking to get into before 2 point broken. Going counter trend could really be the diff between win/BE or a losing trade. Pls see previous post of mine, any chance you could code to get entry earlier?

2nd set up. 1hr has given us a good candle to now suggest counter trend move up is over. So we are now selling rally in a down trend with a decent 1hr candle confirming poss move down in line with D trend.

Left red line our entry and ea agreeing as 2 point has been broken. Ma's not nicely stacked but we have our 2nd basic trade (1hr agreeing with D trend).

Right red line we would look for entry 1 candle before the ea. Ea didn't signal as 2 point not yet broken. Again any chance of coding a neg close candle with little/no lower wick that is close to 2 point but hasn't yet closed beyond 2 point as a trade?

The diff in pips between this trend and the above counter trend trades is really clear.

Sorry Rob I have just shown the ma's etc not to move the direction of thread but just to show what we would look for in set ups. Not intending any of these to be brought in. The 1 2 3 indi appears to be working very well just trying to get a focus between trend and counter trend.