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How to use the 123 strategy effectively

  • #1,461
  • Jan 11, 2012 8:59am Jan 11, 2012 8:59am
Sit on my hands an wait!
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  • #1,462
  • Jan 12, 2012 7:26am Jan 12, 2012 7:26am
I love seeing this thread pop back up. It brings me back to fundamentals. This is the only pattern I need. I get lost in the "giggle weeds" and start bleeding off my account. This pattern has been the only consistent thing over my time of trading. It is back to basics. I see Paulus is off to other methods, the M1 Tricolor to be exact. I tried it, but without much luck. This seems much easier. Anyway, I just took two trades, EU and AU. Easy sailing on these. Both M5 TF by the way.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,463
  • Jan 12, 2012 7:47am Jan 12, 2012 7:47am
The time will bring a new setup
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  • #1,464
  • Jan 12, 2012 8:27am Jan 12, 2012 8:27am
Too risky? Opinions are encouraged.
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  • #1,465
  • Jan 12, 2012 2:38pm Jan 12, 2012 2:38pm
the chart looks decent. I have never done 123 on anything longer than M15 though.

Here is a M5 i entered late today on EU. Paulus would say to do this until 5 EST, but I think I will cap it at 1 or 2 EST.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,466
  • Jan 12, 2012 3:15pm Jan 12, 2012 3:15pm
The TF5 is too short for me. Sometimes, I use the TF15 for fine tuning.
And you see, the 1-2-3-Setup work in all TF´s.
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  • #1,467
  • Jan 12, 2012 3:17pm Jan 12, 2012 3:17pm
I love the 123, especially in areas of S/R. There was a nice one just after London open, then again at the 2770 area. Resistance and R1 were there. Can't post anymore pics, still a junior member. 5m and 15m charts are great for them
  • #1,468
  • Jan 12, 2012 4:06pm Jan 12, 2012 4:06pm
The trade hit profit. I take the 1.618 area as profit as supposed to the 200. I just find my hit rate goes up. Also, Paulus always said no matter where he was in a trade (profit or loss), he closed it at the end of NY due to such low volumes and liquidity. Again, I think I will limit my time to around 2 EST.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,469
  • Jan 13, 2012 12:45am Jan 13, 2012 12:45am
Perhaps, i have set the third stop too early. But, i have no screen time today an i must protect my money.
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  • #1,470
  • Jan 13, 2012 12:51am Jan 13, 2012 12:51am
Quoting capstone
The trade hit profit. I take the 1.618 area as profit as supposed to the 200. I just find my hit rate goes up. Also, Paulus always said no matter where he was in a trade (profit or loss), he closed it at the end of NY due to such low volumes and liquidity. Again, I think I will limit my time to around 2 EST.
Why dont you trail the stop after after a certain level and let surprise you from the market?
  • #1,471
  • Jan 13, 2012 5:29am Jan 13, 2012 5:29am
Quoting papilio
Why dont you trail the stop after after a certain level and let surprise you from the market?
Suppose I could.
Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,472
  • Jan 13, 2012 6:59am Jan 13, 2012 6:59am
Damn, I should have let the fingers of the stop.



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  • #1,473
  • Jan 13, 2012 7:50am Jan 13, 2012 7:50am
Here is the M5 chart from just a minute ago. Very sloppy and probably not the best take. But it hits. EU was cleaner, but was a continuation 123 instead, which I am still not as comfortable with.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,474
  • Edited 8:09am Jan 13, 2012 7:59am | Edited 8:09am
Quoting papilio
Why dont you trail the stop after after a certain level and let surprise you from the market?
I do not think I will do this unless the momentum seems very strong and there is nothing in regards to price structure beneath or above the 1.618 line to stop it from hitting the 2.00.

More than anything, I cannot stand the thought of losing what I banked between the 1.272 and the 1.618. I consider the 1.272 line to be 1st base, the 1.618 line to be 2nd base, and the 200 and 300 to be home run and grand slam territory. I am very happy being a consistent 1st and 2nd base hitter.

EDIT: This trade just hit 200, a home run....I only took 2nd though...EU was a grad slam on the continuation...I need to get better at those! Here is the chart.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,475
  • Jan 13, 2012 8:55am Jan 13, 2012 8:55am
I am usually traveling at higher time frame. But there was a little bit frustration about the last trade.
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  • #1,476
  • Jan 13, 2012 9:27am Jan 13, 2012 9:27am
Quoting papilio
I am usually traveling at higher time frame. But there was a little bit frustration about the last trade.
Welcome to the small timeframes! You may want to adjust your fib measurement so that it measures the actual 123 you are trading.
Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,477
  • Jan 13, 2012 10:59am Jan 13, 2012 10:59am
It is good to be back here...2% per day the last 2 days by getting back to fundamentals....feels good. The charts have regained their focus. Have a good weekend all, and thanks for the lessons Paulus.
Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,478
  • Jan 17, 2012 2:43pm Jan 17, 2012 2:43pm
I missed the big fall. Wife not feeling well so I was getting the kids off to school. The next hit was this long. Good for about 15 points.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,479
  • Jan 18, 2012 6:23am Jan 18, 2012 6:23am
I live in EST and am to lazy to wake up at 3 AM for the London open. My morning starts at 6 AM EST. Here is what I have on M5 AU and EU respectively. I pull out of the EU at 200 instead of waiting for the 1.618 fib to be hit. Nice trades...good pips....We will see what NY brings.
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Lord, Liar, Lunatic. Those are only 3 options to Christ's diety claim.
  • #1,480
  • Jan 19, 2012 1:56am Jan 19, 2012 1:56am
new trial
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