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123PatternsV6 revisited

  • #541
  • Jul 16, 2013 5:14am Jul 16, 2013 5:14am
Quoting dee50
EU +55. This trade just hit TP. perfect Pin Bar setup on the 15min. TP was minor S&R and 161.8 Expansion. 123 confirmed setup and momentum. {image}
How on earth do you do this?

Any chance you could teach me/mentor me?

I've been studying charts for 15 hours a day for months, and I'm still struggling. I would really appreciate someone to focus on helping me improve.

I've read ALL KINDS of price action literature, but when It comes to applying it, it never works out...

I could really use some help.
  • #542
  • Jul 16, 2013 5:24am Jul 16, 2013 5:24am
Quoting Tok
{quote} How on earth do you do this? Any chance you could teach me/mentor me? I've been studying charts for 15 hours a day for months, and I'm still struggling. I would really appreciate someone to focus on helping me improve. I've read ALL KINDS of price action literature, but when It comes to applying it, it never works out... I could really use some help.
Same is here, now we are too , we still got tons to read and 1000s of screen time
  • #543
  • Jul 16, 2013 5:54am Jul 16, 2013 5:54am
Quoting dee50
{quote} 4 hr charts Big E. If people had read the TMS thread they would have realized that BIG E traded the 4 hr at night and the 1hr during the day. Phx62 trades primarily the 1 hr, but also trades the 15 min. I trade the 1hr, 15min and 5min. Big E said the TDI is King on the 4hr but PA is King on all other time frames. However, the market has changed considerably since he said that, at the time the EU had a range of 200 pips per day, what does it have now? So as far as I am concerned PA is King on all time frames with TDI confirming a move. I...

what I understood that Big E traded 4H at night his time pacific time which equals London session and that's where most of the volume come, I couldn't agree more with you that price action is the king for all the time specially when you use it to trade one pair and become an expert with it like your kind self.
my problem is that I see a lot of people talking about price action but I discover later that everyone means his own experience , not a material to study or specific points that can be worked with, for example you can build your entry on a candlestick shape over a support or a Resistance, but if you see a pattern like double top or triple top you may cancel it like what you traded today for EU, other people would say patterns are the best way to find your entry and still you find that market would drag then 100's of pips .
I wish there is a way to define all the factors for price action and their preterites as it really keeps me confused .
and thanks for being informative and helpful as usual.
Attached Image (click to enlarge)
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  • #544
  • Jul 16, 2013 5:56am Jul 16, 2013 5:56am
To answer a multitude of questions, simply, I have copied this from Nial Fullers site, this is the link to the full piece. http://www.learntotradethemarket.com...rading-signals. His emphasis is on the Daily, but he concentrates on just a few simple PA strategies that are easy to identify and to act upon and the beauty of this is, it transfers to the lower time frames. But, you just have to remember that any lower time frame signal is less reliable than one on the HTFs.

This is the meat of it.

"
The “big boys” know how to filter their trades
If you’ve fallen prey to thinking that the “big boys” are trading a hundred times a day and day trading until their eyes bleed, you’re mistaken. Many of the guys with big money wait on the sidelines patiently and “pounce” only when the best signals, levels and trends are present on their charts. You need to learn to think like the big boys, act “as if” you’re a “player”; be intelligent and stop using the market for entertainment and start treating this as a real business.
The best and most logical explanation for why you should trade less is because there are inherently less good signals for any strategy or system; think about it…the reason a signal is high-probability is because it doesn’t happen extremely often, if it did then it wouldn’t be a high-probability event would it? If you force yourself to trade all the time you’re going to be taking a large quantity of useless and second-rate signals, this is simply a waste of your time and money.
Creating a filter checklist for you trades
A good exercise for any trader is to create their own checklist of different filters that they use to scan the markets for potential signals. You can just create a quick checklist with one to three sentences describing what the filter is and then an example image of the filter under it.
Here’s an example filter checklist that I’ve created from the examples above (in yours you would place an example image below or next to each sentence like the ones above but maybe a little smaller):
1. Look for a signal with a protruding tail that creates a false-break of a level. Watch for obvious protrusions and false-breaks of key levels in the market. This filter can be applied to trending markets or to counter-trend trades. Wherever you have a key support or resistance level, keep an eye out for false-breaks / protrusions of that level.
2. A long-tailed pin bar is a high-probability pin bar. Long-tailed pin bars work very well in trending markets and as counter-trend signals, as we saw in the examples above. A long-tailed pin bar is always something to keep an eye out for when analyzing the markets.
3. Don’t “bet” on a breakout…wait for confirmation instead. A good filter to use for tempting looking breakout trades is to wait for the breakout and close above or below the level. Then, the breakout is “confirmed” and you can start looking for a signal in the direction of the break. This will help you avoid many false-breaks, especially in range-bound markets.
4. Look for continuation signals after a pullback to support or resistance in the trend. Trend continuation signals are a ‘bread and butter’ strategy that you need to watch for.Watch for trends and then retracements within those trends, then keep an eye out for signals forming from “value” areas that indicate the trend might resume.
5. Don’t trade signals in tight “chop”. Be cautious trading pin bars or other signals that form in thick and choppy consolidation. If you see two or three pin bars in a row as in our example above and the market is not coming off in the direction implied by the pins, it’s an indication that it’s probably not going to come off. We need to see momentum and a clear breakout from consolidation before entering from a signal formed in “chop”.
6. Look for “confluence”. Watch for obvious “hot points” in the market, or areas where two or three or more levels are intersecting…these are very high-probability levels to trade from.
7. Avoid signals that form in “no man’s land”. This one is sort of the opposite of the confluence point. If you see a signal that just looks like it formed without any type of confluence and looks like it’s just placed wrong, you should probably avoid it. This filter is especially important to use on the 4 hour and 1 hour charts.
Whilst having things like checklists and an overall trading plan are very important, they are only one part of finding the best trading signals. The man or woman doing the analysis and pulling the trigger is JUST as important as the strategy or trading plan they are using.
As traders, we need to develop our subconscious “gut” trading feel on an ongoing basis, learning from the charts and keeping notes and simply immersing ourselves in day-to-day market analysis and observation (note I didn’t say immerse ourselves in ‘trading’). This helps us develop a good intuition and gut feel which go hand in hand with a good trading strategy."
Cut your Losers short and let your Winners run.
  • #545
  • Jul 16, 2013 8:45am Jul 16, 2013 8:45am
Quoting dee50
To answer a multitude of questions, simply, I have copied this from Nial Fullers site, this is the link to the full piece. http://www.learntotradethemarket.com...rading-signals. His emphasis is on the Daily, but he concentrates on just a few simple PA strategies that are easy to identify and to act upon and the beauty of this is, it transfers to the lower time frames. But, you just have to remember that any lower time frame signal is less reliable than one on the HTFs. This is the meat...
As usual, great Teacher Dee and I learn a new thing from you everyday.
Thanks
  • #546
  • Jul 16, 2013 11:46pm Jul 16, 2013 11:46pm
Thanks too dee50!
  • #547
  • Jul 17, 2013 7:23am Jul 17, 2013 7:23am
EU +30. Not a 123 trade, but an example of what to do when PA is screaming at you. Look at all the clues at the top of the chart, set a realistic TP at the minor support and Hey Presto +30 pips and all just before Bernanke sends the market into a Tizzy.
Attached Image (click to enlarge)
Click to Enlarge Name: EU +30 17 07.png Size: 36 KB
Cut your Losers short and let your Winners run.
  • #548
  • Jul 17, 2013 2:05pm Jul 17, 2013 2:05pm
Quoting dee50
EU +30. Not a 123 trade, but an example of what to do when PA is screaming at you. Look at all the clues at the top of the chart, set a realistic TP at the minor support and Hey Presto +30 pips and all just before Bernanke sends the market into a Tizzy. {image}
Cool, you are never out of tricks.....
  • #549
  • Jul 18, 2013 7:48am Jul 18, 2013 7:48am
Dee50,

Thanks...I found this system cause I also trade using the 1-2-3 patterns.

Thanks for the 1-2-3 pattern indicators. I could not get the V-6 indicator to work
cause I think it's set-up for "RANGE BARS" and it kept freezing up my computer.
Do you have any suggestions for this?

Also, I'am a hugh fan of "Another Simple System 15 tf". Which trade the 1-2-3 pattern off of
the 10 ema.

Loveevery1 is using the: "Another Simple System"

10 ema (magical ema)
200 ema
800 ema
round numbers

This system and Another simple system in my opinion are the SECRET to forex. So thanks for keeping this
alive and helping people! Out of the 3 or 4, 1-2-3 pattern indicators (V-6, I couldn't get to work) I'am
using "show 123 v2" indicator. What do you think of that indicator? Or, do you like the other 2 that
you posted better?

Once again thanks for all your help, it is very much appreciated!

snarlyjack
  • #550
  • Jul 18, 2013 12:05pm Jul 18, 2013 12:05pm
Hey Dee, are you taking the day off ? if you did good for you, the day that Bernanke has a speech should be off..
  • #551
  • Jul 19, 2013 12:59am Jul 19, 2013 12:59am
Quoting snarlyjack
Dee50, Thanks...I found this system cause I also trade using the 1-2-3 patterns. Thanks for the 1-2-3 pattern indicators. Also, I'am a hugh fan of "Another Simple System 15 tf". Which trade the 1-2-3 pattern off of the 10 ema. Loveevery1 is using the: "Another Simple System" 10 ema (magical ema) 200 ema 800 ema round numbers This system and Another simple system in my opinion are the SECRET to forex. So thanks for keeping this alive and helping people! Out of the 3 or 4, 1-2-3 pattern indicators (V-6, I couldn't get to work)Once again thanks...
Hi Snarlyjack, nice to see you are still around. I am very familiar with Arjuns 10ema method. Sorry I took so long to respond, I did not bother trading yesterday as I thought the market would dither along until Bernanke, but I thought it unlikely that Bernanke would say any thing different.

Unable to start "123Patterns v6"
Check to see if you have the standard MT4 "ZigZag" indicator installed, I am in the habit of cleaning out my indicator folder, and I deleted the zigzag indicator thinking I would never use it. After I re-installed it everything worked fine. I still have to manually kick start the indicator every time I open my MT4

I am using "show 123 v2" indicator. What do you think of that indicator? Or, do you like the other 2 that you posted better?
I like the V6 indicator and the "show 123 v2" although I do not use either with their default settings. The "show 123" is more flexible and has the capabilities of being tailored more and I think that for a novice it is very good as it "Reveals" more 123s which is good for the learning process, as long as the novice knows not to try and trade every 123. I am still undecided which one I like best so I am running both.
Cut your Losers short and let your Winners run.
  • #552
  • Jul 19, 2013 1:10am Jul 19, 2013 1:10am
Quoting geomoon
Hey Dee, are you taking the day off ? if you did good for you, the day that Bernanke has a speech should be off..

Yes I took the day off. Normally, for me at least, there is money to be made from Bernanke but as this was his second outing this week I thought it unlikely that he would say any thing that would move the market.

I noticed you over on the TMS thread, I forgot to mention that the majority of them are trying to trade the 4hr charts. If you want something more relevant to the lower time frames, there is a thread called
X-Man's Super Simple System
http://www.forexfactory.com/showthread.php?t=327972

This method is identical to the TMS method except it has been adapted to the lower time frames, you will find that X-Man also has a 4hr method, ignore it.
Phx62 and I spent quite a lot of time posting on that thread, the thread died when we stopped posting there but still has all the relevant information that you will need.
Cut your Losers short and let your Winners run.
  • #553
  • Jul 19, 2013 5:49am Jul 19, 2013 5:49am
EU +27 +25 = 52pips. 2 straight forward 123 entries 1 short off Resistance and 1 long off Support. Both TPs were obvious, and today with small candles, over ambitious TPs would have been stupid.
Attached Image (click to enlarge)
Click to Enlarge Name: EU +27 +25 19 07.png Size: 40 KB
Cut your Losers short and let your Winners run.
  • #554
  • Jul 19, 2013 6:07am Jul 19, 2013 6:07am
Quoting dee50
{quote} Yes I took the day off. Normally, for me at least, there is money to be made from Bernanke but as this was his second outing this week I thought it unlikely that he would say any thing that would move the market. I noticed you over on the TMS thread, I forgot to mention that the majority of them are trying to trade the 4hr charts. If you want something more relevant to the lower time frames, there is a thread called X-Man's Super Simple System http://www.forexfactory.com/showthread.php?t=327972 This method is identical to the...
Thanks for the information Dee , I want what everyone wants, a successful way of trading to keep me away from 9-5 Job and between markets psychology ,the tons of information which you still don't know if it is working or not I really feel completely lost and don't know where to start and what is the right track to reach a point to serve food on my table from trading, I thank you for all the help and insight that you provide.
  • #555
  • Jul 19, 2013 6:17am Jul 19, 2013 6:17am
Quoting dee50
EU +27 +25 = 52pips. 2 straight forward 123 entries 1 short off Resistance and 1 long off Support. Both TPs were obvious, and today with small candles, over ambitious TPs would have been stupid. {image}
That's Great!, I managed to take the first short trade like you did on a demo but and because I'm a chicken I got only 15 Pips which I'm totally happy with, it was a 123 simple and clear.
as for the buy trade is there any other reason that you took buy from that area other than it's just a bounce from a support ? could the price break that area and make another 123 pattern for a downside ? don't you think it was early entry ?
BTW :how did you define that support green line, did you do it by just looking at it or through an Indicator?
  • #556
  • Jul 19, 2013 7:18am Jul 19, 2013 7:18am
Quoting geomoon
{quote} That's Great!, I managed to take the first short trade like you did on a demo but and because I'm a chicken I got only 15 Pips which I'm totally happy with, it was a 123 simple and clear. as for the buy trade is there any other reason that you took buy from that area other than it's just a bounce from a support ? could the price break that area and make another 123 pattern for a downside ? don't you think it was early entry ? BTW :how did you define that support green line, did you do it by just looking at it or through an Indicator?
Congrats on the 15 pips
There is no such thing as "only X pips" any outcome that preserves or increases capital by any amount is a "winner"

Look at the chart more closely. How many candles tried to go lower at the BRN & S&R, did the price close, at any time below the BRN? When price spikes thru a level but does not actually close above/below it, it is an indication that price will move in the opposite direction. Look at the TDI and Stochastic had they both been in Over Sold?

Could price have reversed after the entry and gone the other way. Of course. I can not predict what the market will do next, I can only make an educated guess and hope that I am right, if not my SL is there to protect me.

How did I define that support line, look at a higher time frame as per the attached chart.

Edit. One further point about the entry. The pullback from the 2 point of the 123, was held at the support level (BRN) same as the first trade where the pullback from point 2 was held at the resistance level. My experience has shown that if this happens the 123 will complete and price will move on enough to at least guarantee a breakeven.
Attached Image (click to enlarge)
Click to Enlarge Name: 4hr S&R.png Size: 28 KB
Cut your Losers short and let your Winners run.
  • #557
  • Jul 19, 2013 7:40am Jul 19, 2013 7:40am
Quoting dee50
{quote} and the "show 123 v2" although I do not use either with their default settings. The "show 123" is more flexible and has the capabilities of being tailored more and I think that for a novice it is very good as it .

Hi Dee

What settings do you use for the show 123 v2?

Here is the default settings, which ones do you change.

PGPB
Attached Image
  • #558
  • Jul 19, 2013 8:16am Jul 19, 2013 8:16am
Thanks Dee,

You were right I "lost" the zig-zag indicator somewhere along the way, so I reinstalled it.
I still can't get "V-6 to work for some reason" so I'am going to use "V-2". I think it
has something to do with the range bar's set-up? But it's all good...

When I look at your charts they are almost 100% exactly like mine. I guess
great minds think alike, we must be trading very simular After all these
years of trading and reading different systems that we both came to the
same conclusion...scary isn't it

Thanks for all your help!

snarlyjack
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdmm5.png Size: 63 KB
  • #559
  • Jul 19, 2013 8:40am Jul 19, 2013 8:40am
Quoting pgpb
{quote} Hi Dee What settings do you use for the show 123 v2? Here is the default settings, which ones do you change. PGPB {image}

aggression = 3
rejectifhightlessthan=150(for 5 digit broker)

I have not finished testing with the different switch settings.

I also set the faildncolour & failupcolour to none, reduces the clutter on the chart.

And reduce the maxbar setting, unless you are doing a lot of back testing. This reduces the load on your processor
Cut your Losers short and let your Winners run.
  • #560
  • Jul 19, 2013 8:45am Jul 19, 2013 8:45am
Quoting snarlyjack
Thanks Dee, You were right I "lost" the zig-zag indicator somewhere along the way, so I reinstalled it. I still can't get "V-6 to work for some reason" so I'am going to use "V-2". I think it has something to do with the range bar's set-up? But it's all good... When I look at your charts they are almost 100% exactly like mine. I guess great minds think alike, we must be trading very simular After all these years of trading and reading different systems that we both came to the same conclusion...scary isn't it Thanks...
Sometimes when I first start MT4, 123patternsv6 does not start, so I R Click. Indicator List. click on v6. click on edit. without changing anything, click on OK and then it starts, no idea why.
Cut your Losers short and let your Winners run.
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