123PatternsV6 revisited

Thank you for system, great work.

Interesting theory, will see how it goes .. My only concern is bullish divergence in oversold area that just created.

Thanks - so easy when you know how.

I notice that the system paints very few candles red or blue - I suppose that's just the nature of the beast.

Hi every body
why we dont set zigzag depth in 123v7 to 12? if we set zigzag depth=12 some false signal will filter
i ask this question because robdee analyses with zigzag depth 12 in any pic?

hi rob
Thanks for new verion of 123v7 but I do prefer the first one with the ability to set the zig zag depth have been playing with the zig zag depth and 8 looks really good especially on the higher time frames eg 1hour

Another 1 hour example depth on 8 easy to see trend consolidation and trend change

Hi sako, thanks for your feedback. I'm always glad to hear a different point of view. I have been putting so much effort into overcoming ZigZag's repaint issues that I have been overlooking the merits of ZigZag. Yes it does have merits.

Another indicator I have written uses ZigZagDepth=8 and it appears to be a very effective level of filtering. I also agree with what you say about higher TFs that is why I use V6 on 4 hour chart.

The higher the ZigZagDepth number the more little insignificant peaks are filtered out. This allows us to focus our attention on the larger, more significant, more powerful price points.

How much filtering is appropriate?

This is always problematic, some people want to see every possible trade highlighted on their screen. Others are happy seeing only a select few high probability trades. I am in the latter group, so very selective filtering is my usual preference.

Robdee

hi rob
Im not sure the repaint is much of an issue when you have an area of interest say on the 1hour frame just drop down to a lower time frame eg 15 min or 5 min to refine your entry it would soon be come clear whether that point of interest on the say 1hour is going to go the way you want
I have been trying to see how much the indy repaints on 1min to see if it is a problem
does it repaint often or is it only occassionally you have a better idea
From what i can see at the moment it looks pretty good rob

This happens when I release Beta code.

People ask me, why are you still using the old version ?

Answer: I have been using the old version for a long time, I know it works.

Answer: The new beta code is for testing only. It needs to be tested over a period of 2-3 months. It is just a development tool for new ideas. It is like playing with stuff to see how it works. I do like the look of it but I am not very confident about it.

Are you wondering which version to use V6 or V7 ?

Keep in mind that V7 is beta test only, I have no idea how consistent it will be over the long term. The focus of V7 is on early aggressive entries (before the break of 2) so this is not really following strict 123-break methodology.

V7 seems to fit the last few days of price action by passing a large number of potential entries through a series of filtering rules. It seems to fit because I made it fit. Only a few of those many potential entries make it through the filters and are displayed. (If you want to visualise this filtering set ShowDots=True). Now we need to wait and see if it continues to perform without me doing any more fitting.

V6 is my tried and tested old faithful 123-break indicator that has been around for more than a year. You can control the level of filtering with ZigZagDepth and if you can put up with a few ZZ repaint issues then it will suit many applications.

Final note, if you cannot clearly identify 1 then 2 then 3 with 2 pointing in the direction of the trade then it is not 123 analysis, it is something else.

Hope that helps. I get frustrated when I post Beta test code and some people start treating it like a production release.

Maybe I should call it Alpha code for testing, I don't know.

Anyway, enough said.

Robdee

Thanks for your reply
Just to clarify I like this 123v7 first version for the reasons Ive posted.I am really impressed with what you have done and iam trying to learn as much as i can from this thread . From other threads I see a lot of people knocking indicators because they repaint and they throw the baby out with the bath water this is not a perfect game and there will never be a perfect indicator
but what you have developed here is really something i like a lot. This 123 indy is new to me and Im trying to get to grip with the boundries of how it may be useful and share any positive results thanks for your effort and sharing rob

What are these numbers in yellow box?

David, those are OHLC prices for the current candle.
OHLC means open high low close.
See this page for an explanation of OHLC candles.

hello everyone, here are some decent trades according to me. just pointing them out. zigzag is set to 1.

Hi Robdee,

Just voted after I finished the 17 pages, this is great Will try to keep track.

pbb

From a visual perspective it gives confidence in the trend and where it may be finishing. Hope the charts are self explanatory 5min chart then 1min chart of the move

EURUSD
London started with a tricky bullish pullback lasting 2 hours.
All had calmed down by 10:30 with a continuation of the downtrend.
V6 based fibo targets worked as expected. Day's low hit at 16:00.



Note: Following that period of choppy consolidation I experimented with stop hunting. Today I shifted the lowest buy zone down 25 pips and the highest sell zone up 25 pips to observe stop hunters. This is shown above.

Robdee

so can i ask you robdee, how did you trade that? or did you? or?

The only trade I took (on this system) was 10:30 gmt short. Bearish trend too strong to look at longs imo.

got it. thats the first short signal in 123's there if you look at the top before. im with ya

Put the latest version of 123v7 on to see how it worked around the breakout in the post 225 I did.
Worked well
Great being able to turn bulls and bears off keeps chart clean when looking for the entry
This is looking promising Rob but as you say give it the test of time
PS Have both 123v7 indicators on chart first for the zigzag 8 setting second version 123v7 for testing entries