Trading is as simple as 1-2-3

Wild ride

USDCAD Exhausted? Might be ready for it now...

Right out of the TEXTBOOK

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A nice set up on the EU this morning during London. I was able to get 10 pips before stop out. I understand the importance of protecting profit over loss, but it seems the tight 5 pip move ups on the SL is not going to let a trade run up much. Thoughts?

Unfortunately, the day has moved on a fair bit, so I hope the chart isn't too confusing as it shows now. Ignore everything below the area we are interested in and also the non-relevant lines. Anyway, for what it's worth...

I have said it before here - and TS and I have talked about it as well - that I do not use the ''standard'' tp/sl methods for my 1-2-3 trades. I use (and I stress, this is how I do it, I am not saying it is better than any other way, just that it works for me) a ''Fib-Map''. In this trade's instance, I would run it from H to L on the 2nd bar and from last H to 2nd bar's L. This gives a layer of target points.




I then normally look to lock in any profits at areas of multiple lines (including pivots in this) and my hard stop is probably between -5 and -10 pips below the L of the reverse. I think the most I have ever set this is -13/-15.

So, if you look at the charts, I would have entered at the dotted red line and would have closed out at around +13 pips at the multi-line point. I will often close half here and move the hard stop up to around half-way along that move (just below the stall)...




I would then add another Fib layer from the new High of the move back again to the entry level...



...and in cases like this one, this part of the trade stays running and here would have gone on to +18, so an extra +5.

An alternative to this last added Fib, is to trail half-a-bar back or two-bars back or whatever your favourite method happens to be. I've used all these and it really is swings-and-roundabouts. An indicator like the Chandelier Stop can also be used to do the same thing more mechanically once the trade is up and running. Ye pays yer money and ye makes yer choice.

Hey, it's not perfect - and it may seem a hell of a complicated and I have been doing this for a long time and I guess it's second-nature...but as I said, it works for me.

I should also point out in respect of the above - that it is easier to do, than it is to explain, lol...

USDJPY

GBPJPY This also looks good - but I am actually jpy-cautious today, despite the last post (don't know if that was my one goody for the day there, lol!)

Thanks Lemer for that explanation of your strategy. It helps to circulate ideas like that. ultimately we will arrive at what works for us. I can see you put a lot of thought into what you presented.

No worries. It does the job for me, so fair enough. I should say that it is easier to do this if you're running a single trade - if by any chance you get a bunch hitting at the same time...it can get a bit, err, how can I put this...hectic! In those situations, I just kind of wing it, lol.

Lem - I am still just trading your Dead Zone and Billys Daily and 4hr breakout but I gotta say I really like this one also. Trading from somewhere to somewhere else. Your explanations are Top Notch. Gonna have to call you Professor Lem. I don't quite understand all of this yet but will get there after studying your and TS charts some more. Thanks.

Hi Tom - good to see you here. I really love 1-2-3 trades. Once you get the concept, they are the gift that just keeps giving! As always, any questions, just ask away.

GBPCHF A nailed-down classic example for those who were looking today (and who aren't scared of the Swiss National Bank...



USDCHF Ditto around the same time...



GBPNZD Two in the same day!



GBPCAD This one just happened...



EURGBP Another two in one day - you could argue for three if you added the long that just happened - but that wasn't a new low on the day (broker's start time skews things)...

GBPUSD Big push down on H4 could give us a bounce here...just before US Open...

Did just that. Nice...

GBPUSD

CHA CHING