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Attachments: Trading 1-2-3 reversal and breakouts without PVRSA
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Trading 1-2-3 reversal and breakouts without PVRSA

  • #61
  • Apr 21, 2014 5:50pm Apr 21, 2014 5:50pm
Hi jmn5611 , look like you have a good point of trading 123 set can you elaborate a lil bit or more , I like to learn some of your move .
if you can post some picture will be super , a new one is good if not an old oneis ok too . better still new and old picture so we all can learn some thing from you .
Thanks in advance

But back to the original topic. The pattern that you guys are discussing is present across all markets. If you understand that it is not a cure all, it is a good way to make sure you with the trend. Draw in some channels, and on the next pullback after a completed 1 2 3 patten, you can enter and target point 3, with a stop below point 2
1-2-3 trading is a good way to make money. Where most people mess up, is that they take the point 2 breakout. That is too early. Wait for the pull back to challenge point 3. When that fails, take the trade

Quoting jmn5611
{quote} Hi K40, what do you mean by this post? I'm just curious. 1-2-3 trading is a good way to make money. Where most people mess up, is that they take the point 2 breakout. That is too early. Wait for the pull back to challenge point 3. When that fails, take the trade.
  • #62
  • Apr 21, 2014 5:51pm Apr 21, 2014 5:51pm
double post
  • #63
  • Apr 22, 2014 2:22am Apr 22, 2014 2:22am
Quoting K40
Hi jmn5611 , look like you have a good point of trading 123 set can you elaborate a lil bit or more , I like to learn some of your move . if you can post some picture will be super , a new one is good if not an old oneis ok too . better still new and old picture so we all can learn some thing from you . Thanks in advance But back to the original topic. The pattern that you guys are discussing is present across all markets. If you understand that it is not a cure all, it is a good way to make sure you with the trend. Draw in some channels, and on...
I could post some charts but there is no need to reinvent the wheel. Check out this thread.....1-2-3 trading for dummies!

http://www.forexfactory.com/showthread.php?t=308231

There is very little that is new here in FF. Whatever the topic, there is a thread about it somewhere on here. Enjoy!

Edit. This is why I don't really try to run my own threads. There is nothing new to say.
If you are good at something, never do it for free--Joker
  • #64
  • Apr 22, 2014 2:59am Apr 22, 2014 2:59am
Quoting K40
Where most people mess up, is that they take the point 2 breakout. That is too early. Wait for the pull back to challenge point 3. When that fails, take the trade {quote}
Can you please clarify a bit this point?

Usually 1-2-3 pattern is traded with entry on breakout of point 2 with SL on point 3...

Thanks in advance
  • #65
  • Apr 22, 2014 3:05am Apr 22, 2014 3:05am
Oooo , i see , so trading boloso you are revering to . thanks
  • #66
  • Apr 22, 2014 3:07am Apr 22, 2014 3:07am
That is jmn5611 post , you can askhim better , but as it is = 1wave ,2 wave ,3 wave , the pullback thats what he say it , if I am not wrong but you can ask him he is here .

Quoting lucariga
{quote} Can you please clarify a bit this point? Usually 1-2-3 pattern is traded with entry on breakout of point 2 with SL on point 3... Thanks in advance
  • #67
  • Apr 22, 2014 3:15am Apr 22, 2014 3:15am
Quoting jmn5611
{quote} Hi K40, what do you mean by this post? I'm just curious. 1-2-3 trading is a good way to make money. Where most people mess up, is that they take the point 2 breakout. That is too early. Wait for the pull back to challenge point 3. When that fails, take the trade.
Sorry K40. You are right is jmn5611's post.

Hey jmn5611, can you clarify a bit this point?

Usually 1-2-3 pattern is traded with entry on breakout of point 2 with SL on point 3...

Thanks
  • #68
  • Apr 22, 2014 3:16am Apr 22, 2014 3:16am
Quoting lucariga
{quote} Can you please clarify a bit this point? Usually 1-2-3 pattern is traded with entry on breakout of point 2 with SL on point 3... Thanks in advance
You will need to look at some charts in the thread I posted and learn to count the waves.

Dredding takes the breakout of point 2. I am more conservative, so I will wait for a failure of point three. All I am doing is making sure the channel is mature.
If you are good at something, never do it for free--Joker
  • #69
  • Apr 22, 2014 3:33am Apr 22, 2014 3:33am
Quoting jmn5611
{quote} You will need to look at some charts in the thread I posted and learn to count the waves. Dredding takes the breakout of point 2. I am more conservative, so I will wait for a failure of point three. All I am doing is making sure the channel is mature.
Maybe I can misunderstand because english is not my mother language,
but, in an uptrend, if the point 3 is not lower than point 1, than the pattern is not a 1-2-3.

So, in other words, what you mean is:
If we are in UPTREND
-We wait for a point 1 to form
-We wait for a retracement (point 2)
-We wait for a new high that MUST be LOWER than the high at point 1
-We take a SHORT on breakout of point 2 with SL over point 3


Attached Image (click to enlarge)
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  • #70
  • Apr 22, 2014 4:21am Apr 22, 2014 4:21am
hi luca , he is here http://www.forexfactory.com/showthread.php?t=432741 you can ask him indi , tamplate , count etc . much better environment .

Quoting lucariga
{quote} Maybe I can misunderstand because english is not my mother language, but, in an uptrend, if the point 3 is not lower than point 1, than the pattern is not a 1-2-3. So, in other words, what you mean is: If we are in UPTREND -We wait for a point 1 to form -We wait for a retracement (point 2) -We wait for a new high that MUST be LOWER than the high at point 1 -We take a SHORT on breakout of point 2 with SL over point 3 {image}
  • #71
  • Apr 23, 2014 2:43am Apr 23, 2014 2:43am
Quoting lucariga
{quote} Maybe I can misunderstand because english is not my mother language, but, in an uptrend, if the point 3 is not lower than point 1, than the pattern is not a 1-2-3. So, in other words, what you mean is: If we are in UPTREND -We wait for a point 1 to form -We wait for a retracement (point 2) -We wait for a new high that MUST be LOWER than the high at point 1 -We take a SHORT on breakout of point 2 with SL over point 3 {image}
lucariga, you have it exactly correct. That entry give a better probability with a tighter stop in my humble opinion. Good work!
If you are good at something, never do it for free--Joker
  • #72
  • Apr 23, 2014 6:22pm Apr 23, 2014 6:22pm
Quoting lucariga
{quote} Maybe I can misunderstand because english is not my mother language, but, in an uptrend, if the point 3 is not lower than point 1, than the pattern is not a 1-2-3. So, in other words, what you mean is: If we are in UPTREND -We wait for a point 1 to form -We wait for a retracement (point 2) -We wait for a new high that MUST be LOWER than the high at point 1 -We take a SHORT on breakout of point 2 with SL over point 3 {image}
At point one you can draw a line of resistance, at point two you can draw a line of support. Market price very seldom crosses lines of support or resistance without a good reason. Point three illustrates that market price had no good reason to cross the line of resistance. When it crosses the line of support drawn at point two, It is being driven by something , or it would not cross it. This drive should take you into profit. If it does not you can, if you wish, let it hit the stop loss drawn at point two as protection from the off chance that something else is at play.

This pattern thus gives you a high percentage trade worth taking.
  • #73
  • Apr 27, 2014 8:36am Apr 27, 2014 8:36am
If you look in a longer time frame than the one in which you observe the 1-2-3 pattern, you will frequently see it as a Roman candle. (A short fate candle with a big long wick pointing up or down). Candle readers frequently cite this as a trend signalling the likelihood that it is about to reverse.

You can play this reversal with a pending trade somewhere in the body of the candle, a stop loss(if you will) where the wick begins and a take profit at a decent risk/reward ratio to the stoploss.

You can also play the break of the pattern putting a stop loss where the wick begins, entry point up in the wick, and the take profit at the end of the wick.

When one of these entries takes simply remove the other.

While the 1-2-3 pattern is a good trading signal, the break of any good trading signal, is also a good trading signal: the market would not go that way without a reason!.
  • #74
  • Apr 30, 2014 12:02am Apr 30, 2014 12:02am
Quoting Rap Skallion
If you look in a longer time frame than the one in which you observe the 1-2-3 pattern, you will frequently see it as a Roman candle. (A short fate candle with a big long wick pointing up or down). Candle readers frequently cite this as a trend signalling the likelihood that it is about to reverse. You can play this reversal with a pending trade somewhere in the body of the candle, a stop loss(if you will) where the wick begins and a take profit at a decent risk/reward ratio to the stoploss. You can also play the break of the pattern putting a stop...

Hi Rap , your ending statement, do you mean that if it fails to break 1-2-3, then we should enter opposite orders?
  • #75
  • May 5, 2014 8:13pm May 5, 2014 8:13pm
Well been awhile..just back from a glorious holiday.

Update on trades triggered last.

Current Trades/Watching :

1- hour chart triggered USDJPY LONG 101.94 (Stop Loss 101.3) Profit Limit ( 102.93) - Hit profit 99 pips

1- hour chart triggered EURUSD LONG 1.38348 (Stop loss 1.3787) Profit Limit (1.38826) - Hit stop loss -47.8 pips

Daily Chart Triggered GBPUSD LONG 1.683 (Stop loss 1.664) Profit Limit (still undecided) - Still running


* Going forward I'll just monitor and post Daily Trades.
  • #76
  • May 13, 2014 5:19am May 13, 2014 5:19am
GBPUSD short trade triggered 1.6828
  • #77
  • May 14, 2014 5:06am May 14, 2014 5:06am
closed 1.676 gbpusd short above.
  • #78
  • Jun 5, 2014 11:19pm Jun 5, 2014 11:19pm
Quoting maxpay
A classic example of what to NOT EVER DO. Adding short positions on a higher high and Adding to losing positions. Always have a stop loss and let the trend be your friend. Readers can read from post #69,005 in Sonic R System. This guys rides on a lost of over 1.5k pips and continues holding without any stop loss.. Just happen in his example it retraced back and he made 1k pips. Imagine if it never came back and 1 pip = 10 dollars. (the min at institutions) So like Serenity FX posted on the thread, this guy is trading nano pips to make himself sleep...

I agree. One thing very dangerous about the way some of those guys are trading is that it's cuz they are just playing around. People trade forex to make money. Real money. like at least 5,000USD a month money. I hear too much talk about "blowing" accounts and account starting balance, blah blah blah. It doesn't really matter. A normal human probably needs to at a minimum, trade 100k (1 full lot, 10USD / pip) even to have a chance to make 2k-3k USD a month. And anyone trading a full lot per trade ain't going to be adding 20 or 40 more trades when in the red. You can only do that if the money means nothing. Why practice trading nothing? It's fake. It's like practicing basketball with your 7 foot extra large hoop basketball hoop in the backyard. What's the point? You'll get shell shocked when you play an actual real game of basketball. Running up and down, people pulling on your jersey's, giving elbows, etc. All that "practicing" on the 7 foot hoop in your backyard not only didn't help any, it actually made it worst due to tainted expectations.
  • #79
  • Jun 6, 2014 1:39am Jun 6, 2014 1:39am
Very nice observation chiba_san. They think doing it on demo = doing it in real life. Well not all but, unfortunately the threadstarter and the guy ppl calls Prof TAH. LOL.. I guess ppl will always want to believe what they want to believe.

Guess they need to learn doubling up or down trades isnt the way to go in real life. in demo, yea every tom,dick and harry can take it..
  • #80
  • Jun 6, 2014 4:16am Jun 6, 2014 4:16am
Well another NFP Friday.

Will be watching EUR pairs. I am betting some front running is happening. It should weaken against USD so will be looking at 1-2-3 patterns on EURUSD and USDJPY

Again on statements regarding risk management, it is always a tough choice, IF you do not have a plan and take excessive risk. Which I see is the case with the sonic thread.

I am always a more systematic guy so I prefer to put in a definite finite amount (x% of capital) on each trade according to my risk management. So at the end of the year, I can judge my performance of my system instead of something which is more defined by " Oh its going my way, I'll put on another 5 lots, Or maybe, hmm its going against men now, I'll stack more scouts on the way out and hope it reverses"

Perhaps the guys in Sonic thread do have a system and they kind of put more risk on, but to me it is still very very concentrated, unless of course those guys are millionaires with million dollar accounts. Else I guess 2 possibilities, 1) Trading Demo 2) Trading micro-lots .

Cheers

Btw, 1-2-3 on daily doing quite well for me in GBPUSD and USDJPY lately.. cheers
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