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Trading is as simple as 1-2-3

  • #1,621
  • Dec 8, 2016 6:28am Dec 8, 2016 6:28am
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  • #1,622
  • Dec 8, 2016 6:34am Dec 8, 2016 6:34am
Lem, you are out of control!!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,623
  • Dec 8, 2016 6:42am Dec 8, 2016 6:42am
Quoting TooSlow
Lem, you are out of control!!
The engines cannae take much more o' this, Cap'n!!!

Here's one potential before they blow...

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  • #1,624
  • Dec 8, 2016 6:44am Dec 8, 2016 6:44am
Looks like you'll trade any pair.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,625
  • Dec 8, 2016 6:48am Dec 8, 2016 6:48am
Quoting TooSlow
Looks like you'll trade any pair.
If it sets up, I'll shoot it down!
  • #1,626
  • Dec 8, 2016 6:50am Dec 8, 2016 6:50am
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Not a textbook trade.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,627
  • Dec 8, 2016 8:33am Dec 8, 2016 8:33am
TooSlow,
With the HOLO strategy, I like how specific this rule is: “M5 bar must open between the H1 open and extreme”; it helped me a lot.

Would you say the following rule could be applied to 1-2-3? :
“Mn bar must open between extreme bar open and daily open”

n is whatever timeframe is most effective/you prefer to use for this rule (5M?), assuming this rule could be applied and there’s not too many variables.

My apologies if this has already been discussed earlier in the thread. Cheers!
  • #1,628
  • Dec 8, 2016 8:38am Dec 8, 2016 8:38am
Thought I'd posted this here - but put over on HOLO instead, sorry. Another handful bagged...They all mount up.

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  • #1,629
  • Dec 8, 2016 8:46am Dec 8, 2016 8:46am
Quoting lemercenaire
{quote} If it sets up, I'll shoot it down!
Just make sure you steady your aim.
  • #1,630
  • Dec 8, 2016 9:19am Dec 8, 2016 9:19am
Quoting acdfx
TooSlow, With the HOLO strategy, I like how specific this rule is: M5 bar must open between the H1 open and extreme; it helped me a lot. Would you say the following rule could be applied to 1-2-3? : Mn bar must open between extreme bar open and daily open n is whatever timeframe is most effective/you prefer to use for this rule (5M?), assuming this rule could be applied and theres not too many variables. My apologies if this has already been discussed earlier in the thread. Cheers!
1-2-3 rules are posted on the charts.

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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,631
  • Dec 8, 2016 10:18am Dec 8, 2016 10:18am
TooSlow,

Yes I've read the rules on the charts.
Previous bar must have made the daily high/low.
Price of current bar must be between it’s open and the daily open.
Say the current bar is an H1; if we break it down to smaller timeframes the price "returning" between it's Open and the daily open is essentially the Open price of a smaller timeframe bar, right?
I guess what I’m looking for (for myself) is a more “clearly-defined” (at least to me) rule for entry rather than price on the current bar “returning” to it’s open; the “returning” could instead be defined as the open of a smaller timeframe bar.
Does this make sense? Not trying to make things more complicated haha, just easier to quantify for myself.

A similar question is what is the smallest timeframe you’ve found useful for the Current bar (if any) other than the H1 timeframe apparent in the charts (have you found M5 or M15 to be too risky?) etc.
Once again, sorry if this has already been discussed somewhere earlier in the thread.
  • #1,632
  • Dec 8, 2016 10:23am Dec 8, 2016 10:23am
Quoting acdfx
TooSlow, Yes I've read the rules on the charts. Previous bar must have made the daily high/low. Price of current bar must be between its open and the daily open. Say the current bar is an H1; if we break it down to smaller timeframes the price "returning" between it's Open and the daily open is essentially the Open price of a smaller timeframe bar, right? I guess what Im looking for (for myself) is a more clearly-defined (at least to me) rule for entry rather than price on the current bar returning to its open; the returning could instead be defined...
''... rule for entry rather than price on the current bar returning to its open; the returning could instead be defined as the open of a smaller timeframe bar. ''

The H1 open is the H1 open, irrespective of what tf chart you are looking at. You enter the trade at the new H1 (Higher/Lower) Open of the trigger bar as identified by the rules, as price crosses that line.
  • #1,633
  • Dec 8, 2016 10:55am Dec 8, 2016 10:55am
lemercenaire (and TooSlow),
So the "previous bar" must be an H1 bar is what you're saying; it can't be a smaller timeframe?
I didn't see any timeframes mentioned in the rules, only previous bar and current bar, but I could have missed something. I only observed H1 charts being used but not H1 mentioned in the rules.

Say I'm looking at a 15 minute chart. Price made a new daily high/low on bar [1] (just to be clear - daily high/low meaning extreme high/low). On bar [0], price tested the high/low of bar [1] and returned to the open price of bar [0]. Could I enter there?

If so, what if I enter but then price of bar [0] shoots back to the daily high/low before the bar closes. This is why I'm attempting to make a rule (for myself) to enter once a bar has opened at a certain price, instead of returned to the price of its open.

For example, bar [2] makes a new daily high/low. bar [1] tests the high/low of bar [2], fails to reach it and closes. bar [0] opens between the open of bar [1] and the daily open, signaling to enter. If bar [0] would have opened between the open of bar [1] and the daily high/low, this would be a signal to do nothing/wait.
This could be applied to any timeframe, obviously with lower timeframes being riskier so it's up to the trader's discretion (I would test 5M). Does this make sense?
The concepts in this thread and the HOLO thread are relatively new to me so my apologies if this is unclear/not applicable.
  • #1,634
  • Dec 8, 2016 11:07am Dec 8, 2016 11:07am
Quoting acdfx
lemercenaire (and TooSlow), So the "previous bar" must be an H1 bar is what you're saying; it can't be a smaller timeframe? I didn't see any timeframes mentioned in the rules, only previous bar and current bar, but I could have missed something. I only observed H1 charts being used but not H1 mentioned in the rules. Say I'm looking at a 15 minute chart. Price made a new daily high/low on bar [1] (just to be clear - daily high/low meaning extreme high/low). On bar [0], price tested the high/low of bar [1] and...
PLEASE read POST #1.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,635
  • Dec 8, 2016 11:40am Dec 8, 2016 11:40am
My mistake, I interpreted the H1 in Post 1 as an example rather a rule (and interpreted the 3 questions/answers on the charts as the rules, which don’t mention H1 open).
Just so we’re clear - according to the questions, there’s only the “previous bar” and the “current bar”, and we’re looking at the H1 open of the current bar, so we’re by definition only using the H1 timeframe then. (If we looked at a smaller timeframe, price would have to go between the H1 open and the daily open on the first bar of that timeframe, otherwise there would be more than 2 bars, which doesn’t follow the rules).

So if we’re sticking to the H1 timeframe, my question is: How often does the following situation happen?

Previous H1 bar makes a new daily high/low.
Current H1 bar tests the daily high/low, fails to make new high/low, price returns to the H1 open, you enter a trade but then price shoots up to make a new high/low before the H1 bar closes.
Do you have any rule/suggestion for a “safe” amount of time for price to return to the H1 open?
(Example: Current bar tests and fails to reach daily high/low of previous bar and returns to it’s open price in the first 5 minutes, or even 1 minute, would this be considered “unsafe” to enter?)

Just trying to gain a better understanding, thanks guys for your patience haha
  • #1,636
  • Dec 8, 2016 11:58am Dec 8, 2016 11:58am
Quoting acdfx
My mistake, I interpreted the H1 in Post 1 as an example rather a rule (and interpreted the 3 questions/answers on the charts as the rules, which dont mention H1 open). Just so were clear - according to the questions, theres only the previous bar and the current bar, and were looking at the H1 open of the current bar, so were by definition only using the H1 timeframe then. (If we looked at a smaller timeframe, price would have to go between the H1 open and the daily open on the first bar of that timeframe, otherwise there would be more than 2 bars,...
No safe time.
Take the trades.
You will win some.
You will lose some.
Overall, you should win more than you lose.
Any attempts to filter out losers will result in diminishing returns.

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My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,637
  • Dec 8, 2016 1:10pm Dec 8, 2016 1:10pm
Quoting TooSlow
{quote} No safe time. Take the trades. You will win some. You will lose some. Overall, you should win more than you lose. Any attempts to filter out losers will result in diminishing returns. {image}
I agree. Losses are just a part of it.
  • #1,638
  • Edited 3:08pm Dec 8, 2016 1:59pm | Edited 3:08pm
Quoting acdfx
My mistake, I interpreted the H1 in Post 1 as an example rather a rule (and interpreted the 3 questions/answers on the charts as the rules, which dont mention H1 open). Just so were clear - according to the questions, theres only the previous bar and the current bar, and were looking at the H1 open of the current bar, so were by definition only using the H1 timeframe then. (If we looked at a smaller timeframe, price would have to go between the H1 open and the daily open on the first bar of that timeframe, otherwise there would be more than 2 bars,...
Edited Post due to my being an idiot ...Hopefully not too many read it already, lol!

As TooSlow has said, take them all. A few of us here have tried in the past to add some weighting to the bar pattern but to be honest, it doesn't give you much of an edge at all - plus you add in the aspect of you beginning to overthink. Again, to paraphrase TooSlow, you will then inevitably drop the ones that go on to be big runners and taking the ones that are busts.

The key(s) to 1-2-3 trading, is that you must be prepared to take a bunch of small, controlled losses. Be brutal with your stops, don't be tempted to wait and see ''just in case'' price turns. Take it on the chin and close it out. 'Coz you know what? More often than not, if that first 1-2-3 doesn't play out and the bar goes on to make a new High, the next one (or the next) will, it's the very nature of BreakOut bar patterns.

Stop dropping out of the H1 tf. It's confusing you. When the price makes that new High, start getting set up. You will know where you are going to enter and you will know where to set your stop.

This is all you need to trade 1-2-3:

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Do you see how clear this makes things? With 1-2-3 trades, the pay offs are greater and long runs for big pip gains are more common. Trust me, you will get used to how 1-2-3 trades flow. Stick with it - Good luck!
  • #1,639
  • Dec 8, 2016 2:08pm Dec 8, 2016 2:08pm
Quoting lemercenaire
As I mentioned earlier, by their very nature, 1-2-3 trades are inherently ''riskier'' than HOLO trades, as you are working with BreakOuts. However, the pay offs are greater and long runs of big pip gains are more common. Trust me, you will get used to how 1-2-3 trades flow. Stick with it - Good luck!


Actually, 1-2-3 trades are SAFER than HOLO trades.
You are trading the H1 bar after a new daily high/low has been made.
Later bars are NOT valid 1-2-3 trades.
Either that bar makes a new daily high/low or it reverses.

That fourth highest bar is NOT a 1-2-3 trade.
It is a HOLO.

Lem, you're mixing methods.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #1,640
  • Dec 8, 2016 2:11pm Dec 8, 2016 2:11pm
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Refer to RULE #1 for 1-2-3 trades.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
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