123PatternsV6 revisited

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think a system is a system

finance is worst faster then pc....pc are obsolete in 3 months time

if system works in finance = every body follow and its dead in one week !

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seasons greeting to all !!!!

hhhh if you looked carefully you would see that this journal has nothing to do with this post just look in positions dates

You better whises the strategy keep doing that dunkin to the barrell bottom , it a holly graill ( if you see ) . But 123 is one of the oldest trading stratgy like to see it develope at the canvensional ways not the reverce ways

Ultimately 123 is an attempt to use the Elliot Wave structure and could really be numbered zero, one, two, to make it compatible.

We should start at fractal zero.
We have a wave to a fractal at one.
A wave back to another (opposite style) fractal at two.
Then we try to catch the third wave ... if price moves past one again.

We only know for sure that a third wave is in progress, when price breaks past the fractal at one.

However, we can gain extra pips if we make an act of faith and enter between one and two and are then correct about a pending break, past one, taking us into Elliott wave three.

(Different strategies for entering between one and two could probably take up their own thread; Fibonacci ratios, reversal candle patterns and spread cost calculations being being amongst them.)

Maybe this is a chance to rename the traditional 123 to zero one two. It would certainly clarify what this is versus what the conventional 123 was and also integrate it seamlessly into the Elliott Wave.

Elliott Wave is a tough subject, but parts of it are easy enough to use. Renaming 123 to 012 would somewhat harmonize the two where they overlap and take advantage of the knowledge available in both camps.

thanks

here this morning bullish signal failled

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stop loss not easy to manage ..

Hi Rob
A comparison between v6 and 7. 7 does a great job today after the eur rejected Y's high.

I have added 8 lwma just to show my old fall back of an open/close above/below in trend is a good trade often enough in itself. the entries around 2983 and 2945 shown perfectly.

Just showing a chart with those moves highlighted.

Happy New Year

Only during previous two days can I see proper trading volume and sensible patterns.
That is 4th and 5th January. Before that is just a mess.

EURUSD

 

1. pullback from point 2 at 1.2909
2. London Open above 50% fibo at 1.2932
3. V7 sell signal follows point 3
4. 65 pips to first target
5. 140 pips to second target

Click this chart to see the full size image.

Conclusion: Today was another good example of waiting for 1 2 3 to form against a 50 fibo.
When London forms point 3 near 50 fibo this is a sensible pattern.

I must say I am glad that NFP week is over.
This usually means we can settle down for the next three weeks with some sensible trading patterns.

EURUSD
London bulls "paddled against the current" stalling near 1.28
A small bearish 123 formed at that level
The 50 fibo (1.28) rejected one hour before NFP news
Overall drop for day was 1.28 to 1.27



Conclusion: Don't be fooled by London pushing against the trend

Ok, a slightly different approach. Not using the larger fibo targets and filtering the trades using the v7-dots. No other indicators attached, plain v7. Besides that, I think one should make sure which sessions to trade.

I was looking at the thread again last week after being of for a while. Mid december I posted some charts with the first v7 release. During the holidays I have looked at it again, but as movement and liquidity is poor and unreliable, any outcome during this period should be neglected. So, last week I started things up again with the current v7 version and today I decided to give it a shut.

I like to draw lines, simple lines from dot to dot, fractal to fractal (not using fractals myself) or using Demark lines (in most trading I use this). This will filter a lot of signals out. As Robdee said in this thread that (about the v6 arrows) not all arrows should be seen as direct trade signals, but that they should be filtered.

As we can choose to display the dots in v7, I use this for drawing lines. For an up-line (breaking down): connect the last/current blue dot with the prior blue dot that was below the current blue dot (just as TD-lines, Demark). The other way around for down-lines.

Now I need my aggressive 123pattern signal to close below/above the trendline break. This means AFTER the break, within a few candles. When a signal comes first, then followed by a trendline break and I still can get in, I won't. First the break, then the signal (the signal candle can break the line as well). Stop is at the last dot high/low (=+spread). Target is at R:R:1. This is not an ideal situation in most systems, but.... As it's the aggressive version, the goal is to grab this instant movement, collect some pips and get out. In my other trading I use a more conservative RR, I am not a gambler! In another thread I have learned that jurn_e makes a nice return by doing just so, collecting short run's. For this aggressive version I think such an approach could work.

I made my first live trade this morning. In the chart it’s the second trade that I marked. The first one I missed. The first trade gave me a nice 11pip, now see what happens in the coming week. Will keep you posted.

very interesting pbb, i have done a lot of back testing and thinking during the holidays and come to the conclusion that the signals given by the 123v7 work very nicely if used in conjunction with divergence. i keep a macd and slow stochastic on my charts because of this.

edit: picture

Robdee

I am very familiar with the 123 pattern

I installed your indicator (version 7) on todays EURUSD (5 minute chart)

Around 8:40am EST (NY time) the indi drew a bullish bar and the two lines

See image

I do not see the 123 pattern

I like it that your indicator gave the signal, but I want to understand its "thinking"

pgpb,

On his posts 202 & 235, he explains that v.7 is for aggressive entries - unlike the 123 of v.6. I hope this helps a bit.

Thanks JoeyD

based on your suggestion I surfed back to those posts....that helps.
Also post number 197 helps as well.

Best wishes

PGPB

Hi,
I hope Rob is just on holidays
and this thread is not dead.

Anyone can make simple ea based on 123patternsv7?sell when red dot appear and buy when blue dot appear.

I tried it manually with 15m looks really accurate to me

Hi everyone, I have been focusing on my univeristy studies and work, so trading is a low priority. Quite refreshing actually to take a break from it after years of studying the markets.

Looking at yesterday's London session I see that my very favourite setup was there very plain to see. Now I just need to catch those ideal setups as they happen!

EURUSD
London Open forms point 3 on 50% fibo (ideal)
Wait for V7 buy zone to form
+80 pips to first fibo target

Real thx for your great work.


Your V6 gave me a great idea.


Wish the bests

Shahrooz

Hi everybody,

Thanks a lot Rob for this great thread.

Is there any chance to get the 123PaternsV7 & 123AlarmsV7 indicators for NinjaTrader ?

Have a nice day.