Flag trading the trend

IU have just joined this group after reviewing the past thread entries. Seems there is a very bright leader and a lot of smart followers. Look forward to learning and participating.

welcome rgo I want to stress a point on 123s I don't trade 123s in the sense that we are accustomed to. I use them as market structure turning points so when point 2 is taken out I wait for a pullback to point 3 area if you watch last video I had 2 of them so you can see clearly how I trade them

Thaks D. I think I understand that you take the pullback at one tick beyond the close of bar 3. Is that correct? What would cause you to cancel that order?

If it doesn't fill and pulls away

Do you only take these trades on 4 bar 123s or can there be more than 4 bars?

4 is the minimum in last video there was a big 123 of a bunch of bars to form that 123 that was last trade of session

Is there any science to the number 233?

Divergence does the bar that takes out point 2 have to close beyond 2 or just exceed 2? Also if the bar that exceeds 2 comes back to entry around 3 can you enter on that bar or do you wait for next bar to touch entry before entering. Thanks for the help.

Yes! It is a fibonacci number, the next after 144...

4 trades on the Dax 30 in the first hour after the LO.......taken on the M1...+2 +15 +4 and BE...........there as a -6 pip loss on a trade taken 10 minutes after Germany opened....falls under the category of not too bright.....i included a shot of the Renco 2 covering the trades

... but not everyone would call that "science"...

H - perhaps the time has come to migrate to your new NQ thread as it is singular in its methodology, whereas there's a lot of "variations on a theme" within the mere 11,152 posts on this thread !?

http://www.forexfactory.com/showthre...49#post9420049

Your call anywhichway...

I don't trade 123 breaks I use the 123 break as a trend change then I trade the pullback the the point 3 area heres todays trading it was not great though the market tanked I just couldn't get connected

Great vid! Enjoyed especially how you managed the trade that went about instantly into the red. Best live PA videos I have seen.

All i can say is great minds think alike!

My post from 16-Nov-16;


http://www.forexfactory.com/showthre...50#post9257350




There is a split between how many 123's will trigger and run from point 2 and those that retrace. I signalled that a 50% retrace from distance between points 2&3 skew the R:R massively, but as Harold points out, it is important that the retracement does not bear a minor 123 of it's own...

Here is a perfect example of a reverse 123 (which in any case was back to current trend), which negates the validity of the pullback trade;

Todays trading session

Great videos! Thank you.

Masterful trading! Thanks for taking the time to make the videos.

I am confused about the exits. I assume that you do not follow a specific plan to take profits?