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Trading is as simple as 1-2-3

  • #81
  • Jul 23, 2015 7:14am Jul 23, 2015 7:14am
Attached Image


Previous bar[1] established a new daily low. Current bar[0] opened, failed to make a new daily low and returned to open price. This is the entry.


Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #82
  • Jul 23, 2015 7:35am Jul 23, 2015 7:35am
Attached Image


Trade in the red but not stopped out because new daily low has not been made. Stop at daily low - 1 pip.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #83
  • Jul 23, 2015 7:58am Jul 23, 2015 7:58am
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Stopped out. But no need to It is all part of trading.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #84
  • Jul 23, 2015 8:01am Jul 23, 2015 8:01am
Attached Image


Forget the last trade and move on to the next.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #85
  • Jul 23, 2015 8:04am Jul 23, 2015 8:04am
Quoting TooSlow
{image} Classic 1-2-3 HL-LL-HL pattern.

sorry but i don't follow you. is it really a 123? doesn't it start with bar 0? can you please marks your chart on a lower timeframe showing the swings marked as 1 2 and 3 thats what i was asking for... if you can please show the 1 2 and 3 on the 1 minute or any other lower timeframe so we can see it as a 1 23 in terms of swings.... otherwise we are guessing at what your 1 2 and 3 points are in your head...seems obvious to you...cant speak for anyone else but am not amind reader yet lol
  • #86
  • Jul 23, 2015 8:52am Jul 23, 2015 8:52am
hi TooSlow!

I think I understand the entry, basicly either new daily high or low, where the next candle test that direction, fail, a you get in at current candle's open level...
Next step: where do you get out?
there is always, always another trade!!
  • #87
  • Jul 23, 2015 9:31am Jul 23, 2015 9:31am
Attached Image


Lower lows and lower highs indicates price is moving down.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #88
  • Jul 23, 2015 9:36am Jul 23, 2015 9:36am
Quoting dagoods
{quote} sorry but i don't follow you. is it really a 123? doesn't it start with bar 0? can you please marks your chart on a lower timeframe showing the swings marked as 1 2 and 3 thats what i was asking for... if you can please show the 1 2 and 3 on the 1 minute or any other lower timeframe so we can see it as a 1 23 in terms of swings.... otherwise we are guessing at what your 1 2 and 3 points are in your head...seems obvious to you...cant speak for anyone else but am not amind reader yet lol

is it really a 123? doesn't it start with bar 0?

Bar[0] is the current bar. Bars are counted backwards from the current bar.

A 1-2-3 starts with bar[2]. Bar[2] is 1, bar[1] is 2 and bar[0] is 3.

Attached Image


Does this chart help you understand?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #89
  • Jul 23, 2015 9:43am Jul 23, 2015 9:43am
Quoting TooSlow
{quote} is it really a 123? doesn't it start with bar 0? Bar[0] is the current bar. Bars are counted backwards from the current bar. A 1-2-3 starts with bar[2]. Bar[2] is 1, bar[1] is 2 and bar[0] is 3. {image} Does this chart help you understand?

i wish i could say yes it does...but i can't honestly say it does... thanks for the efforts...maybe its just me .... is it something like the chart below?
Attached Image (click to enlarge)
Click to Enlarge Name: help me understand the 1 2 and 3 please.png Size: 65 KB
  • #90
  • Jul 23, 2015 9:48am Jul 23, 2015 9:48am
Quoting profitfarmer
hi TooSlow! I think I understand the entry, basicly either new daily high or low, where the next candle test that direction, fail, a you get in at current candle's open level... Next step: where do you get out?

Hello profitfarmer:


where do you get out?

Possibly one of the most asked questions by traders. There are many factors involved in the answer. The exit could be a target price, a hard stop or a trailing stop. Placing a target and a stop loss upon trade entry is usually prudent. As the trade progresses into profit, the stop loss could be moved up to break even plus a pip or two or could be switched to a trailing stop.


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #91
  • Jul 23, 2015 9:52am Jul 23, 2015 9:52am
Quoting dagoods
{quote} i wish i could say yes it does...but i can't honestly say it does... thanks for the efforts...maybe its just me .... is it something like the chart below? {image}
Hi dagoods,

I believe I understand your confusion. The 1-2-3 referred to here is the higher low, lower low, high low 3 bar pattern or lower high, higher high, lower high 3 bar pattern. The chart you posted looks like a swing high, swing low. Not the same. I apologize for my ambiguity.

Attached Image
Attached Image
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #92
  • Jul 23, 2015 10:23am Jul 23, 2015 10:23am
Quoting TooSlow
{image} a new daily high or low on what timeframe? Daily high or daily low is independent of timeframe. The chart is M15 timeframe. Please notice the daily high and daily low lines are exactly the same as the H1 timeframe chart in the previous post. Hopefully, that clears up any misconceptions. I apologize if my answers have not been understandable. Thank you for your questions. "Successful people ask better questions, and as a result, they get better answers." - Tony Robbins Socratic method is named after the classical Greek philosopher Socrates....

TY for the reply that is much clearer now...... but i still have questions too slow, lol

Daily high or low is independent of timeframe yet you are looking for a 3 candle pattern? doesn't one need to ask you on what timeframe are you would be searching for your 3 candle pattern?
  • #93
  • Jul 23, 2015 10:28am Jul 23, 2015 10:28am
Quoting dagoods
{quote} TY for the reply that is much clearer now...... but i still have questions too slow, lol Daily high or low is independent of timeframe yet you are looking for a 3 candle pattern? doesn't one need to ask you on what timeframe are you would be searching for your 3 candle pattern?
Attached Image


Hello again, dagoods.

doesn't one need to ask you on what timeframe are you would be searching for your 3 candle pattern?

H1 is my preference. Though other traders may prefer different timeframes.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #94
  • Jul 23, 2015 10:30am Jul 23, 2015 10:30am
Attached Image (click to enlarge)
Click to Enlarge Name: tooslow1.png Size: 20 KB


The patterns appear on M5 timeframe.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #95
  • Jul 23, 2015 10:31am Jul 23, 2015 10:31am
Attached Image (click to enlarge)
Click to Enlarge Name: tooslow2.png Size: 22 KB


The patterns also appear on M15.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #96
  • Jul 23, 2015 10:35am Jul 23, 2015 10:35am
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusdm5.png Size: 24 KB


Traders all know that H1 has 4 M15 and 12 M5 bars within them. A D1 bar has 24 H1 bars. We are all talking about the same price. Each of us chooses how big of time slices we prefer to view.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #97
  • Jul 23, 2015 10:38am Jul 23, 2015 10:38am
Quoting TooSlow
{quote} Hello profitfarmer: where do you get out? Possibly one of the most asked questions by traders. There are many factors involved in the answer. The exit could be a target price, a hard stop or a trailing stop. Placing a target and a stop loss upon trade entry is usually prudent. As the trade progresses into profit, the stop loss could be moved up to break even plus a pip or two or could be switched to a trailing stop. "Successful people ask better questions, and as a result, they get better answers." - Tony Robbins Socratic method is named...
thanks.
assumed the SL was bellow/above the entry candle(current candle)[bar0] or the signal candle [bar1].
the open question remains, if is there any SL size derived from the above, that considered prohibitive for entry?

I was hoping for a bit more specific answer what do you use for exit on H1 chart?
be it [bar0]'s close, a fix R:R ratio, or a hint on what fixed TP works for you.
there is always, always another trade!!
  • #98
  • Jul 23, 2015 10:40am Jul 23, 2015 10:40am
Thanks everyone for the questions. Your questions help me clarify my trading and communication. When you do not understand what I am talking about, the fault is mine for not being crystal clear. Hopefully, you find my responses friendly and not insulting. I am not here to judge or question your intelligence. We are all traders. Some of us may be a little further along the path than others but we all started from the same spot.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #99
  • Jul 23, 2015 10:54am Jul 23, 2015 10:54am
Quoting profitfarmer
{quote} thanks. assumed the SL was bellow/above the entry candle(current candle)[bar0] or the signal candle [bar1]. the open question remains, if is there any SL size derived from the above, that considered prohibitive for entry? I was hoping for a bit more specific answer what do you use for exit on H1 chart? be it [bar0]'s close, a fix R:R ratio, or a hint on what fixed TP works for you.
The SL is placed below the low of the day/above the high of the day. The trade needs some breathing room. Profitfarmer, my exit answer was not meant to be vague. Part of the problem is most traders are never satisfied with their profit because... they always see how much they left on the table. Personally, I have exited with 10 pips and then watch as price kept going for another 100 pips. Happens to me when I trade EURJPY more often than not. What is most important is following your trade plan. A plan that calls for a stop loss to be placed upon entry should be adhered to without exception.

No R:R consideration in my trading. Trading the majors means a TP of 10 is reasonable when you are looking for wins during active trading sessions. Not sure your goal is to get out with quick profit or go for the long haul. Some traders trade heavy lots and are happy with 5 - 10 pips. Others, trade light and look for 100+ pips runs. Personally, I fall in between.

On entry, a stop is placed. As price moves in my favor, I look for the chance to move the stop up to a little above break even. At +20 or move, a 10 pip trailing stop could be placed. Worst case would be 10 pips in the bag.

Profitfarmer, thanks again for your questions. Let me know if my answers helped you understand.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #100
  • Jul 23, 2015 11:03am Jul 23, 2015 11:03am
Attached Image


Entry idea.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
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