1-2-3-Formations and Ross Hooks

[kevin546]

Skog & Jyde

I forgot to mention try looking at the larger picture to formulate which 1-2-3 on the shorter time frame has more substance. This is just a suggestion and subject to the instrument you trade. The longer time frame may make it easier to establish the market intent and then use a lower time frame to zero in.

 

[Jyde]

Skog & Jyde

I forgot to mention try looking at the larger picture to formulate which 1-2-3 on the shorter time frame has more substance. This is just a suggestion and subject to the instrument you trade. The longer time frame may make it easier to establish the market intent and then use a lower time frame to zero in.

Thanks for the reply. It does make more sense when you take in other factors, and the bigger picture, as it always does. I guess I was looking to narrowly and for the immidate 'rules' only.

All the best...

 

[traderkay]

I have had a bash with 123's and a few TT type entries. Easy to do after the market is closed but not so easy when it is open

It's easy to see that the entries you posted are wishful thinking in hindsight and that you're not using consistent rules for entry and exit.

 

[frugi]

Some real world examples of 1-2-3s, RHs and TTEs that I traded today. Critters are everywhere!

Still refining the position sizing and targets but 5 pips on 3, let 1 run at b/e seems to work quite well. Of course when a loss is taken it is painful, but the high win rate should take care of that. If the signal bar is too long for my MM rules then I'll pass it up and/or wait for another one. The signal bar is the one that precedes the entry bar.

 

[trendie]

well done frugi.

I got my first 1-2-3 on the GBPUSD myself. let it slip to a loss, but I can see the patterns now!!

 

[frugi]

Thanks trendie.

Took me ages to get my head round the Joe Ross definitions, but once you know them they tend to stick.

Here's another 1-2-3 TTE from this arvo. Always happy taking small reliable profits, especially when long in a strong down trend.

 

[Quercus]

Nice going Frugs, glad to see you're keeping on top of things! Still struggling here, but looking at those 1-2-3's as they come along, sticking to NQ in the main with candlestick patterns as well as the dark side to light my way!
Cheers
Q

 

[Salty Gibbon]

If the signal bar is too long for my MM rules then I'll pass it up and/or wait for another one

I was interested in your comment Frugi. Is the maximum signal bar length a function of ATR for your trading purposes. eg. 15 or 20% of ATR ?

 

[neil]

Newtron

Hiya folks

Not posted for quite a while.

1-2-3 formations are present and VERY tradable on the FX world on multiple TF's across all the pairs.

This thread had a lof of promise to develop peoples views to the potential of this pattern.

The pattern (for me) needs to be very clear and ideally with a trend line break or other confirmer that a trend change is in force. However, the price pattern alone can be traded just as well.

In effect with this pattern you are trading the first pullback after after a trend change. Who actually cares what its called as long as you can spot it and trade it. Everyone is going to apply it slightly differently. For me the 1-2-3 is a reversal which is triggered when point 2 is broken then am looking for a pullback.

I have traded this pattern off the UK open at 8am for quite a while. I get the trend bias from the 1-2-3 during the Asian range (midnight-ish to 8am-ish) then i'm looking for a pullback after the respective 2 aspect or Asian range is broken. Simple, efective works for ME. The sooner people try to find what works for them the sooner they can go full time and retire.

I have recorded a video detailing this particular set up (and many others) at my website (link is in my profile)

Happy Trading
NB

Just seen your post:
Victor Sperandeo uses a 1-2-3 after trendline breaks, among other things; Wyckoff also has similarities (DB has a thread on volume+ price somewhere on t2w) - whatever your god is called; may it go with you all

 

[frugi]

Hi Salty,

No, nowt to do with ATR. An indicator, with my reputation?

Simply that sometimes a potential bar #3 or pullback bar following RH is too long for me to enter at one end and place a stop at the other and still be obeying my money management rules. If I'm looking for 5 ticks profit then I don't want a 20 tick long signal bar cause to be stopped out would be too painful. Sure I don't have to always place the stop at t'other end of signal bar but I like to keep the rules simple as opposed to having a pile of complex ifs....thens.... to confuse me.

As well as being a matter of MM there is usually a common sense element too, as a long bar is apt to make the potential risk:reward look less attractive, especially in 1-2-3s. Although of course "look" is a very subjective word, I'm happier buying lower than higher!

 

[Salty Gibbon]

Ta very much Frugi me old cocker.

Didn't realise you had a reputation. Hope your wife doesn't know.

 

[frugi]

No worries Salty. Not my wife till June so I have time to diminish my reputation.

Here's one that didn't work (entry too close to point #2, in hindsight) :

 

[Salty Gibbon]

Your real name's not Wayne Rooney is it ?

 

[Salty Gibbon]

Shouldn't you have waited for the 2nd correction bar after the RH which was in fact the doji which invalidated the set-up ?

Technically I guess it is not invalidated until you get back above the No. 1 point but it was beginning to look dodgy after rising past the no. 3 point which wasn't far below the no. 1 point.

 

[frugi]

It wasn't a Ross Hook setup Salty, it was a TTE on the potential #3 point of the 1-2-3. Glad I was stopped out now, mind.

 

[Salty Gibbon]

But the bar after the bar that made the #3 point is a Ross Hook isn't it ?

If you don't think that it is, please explain why.

 

[frugi]

If that bar had traded one tick lower to 493 (or lower) then there would have been a 1-2-3 breakout as the #2 point was taken out to the downside. If this had happened, then, as the next bar did not make a lower low, yes, it would have been a RH. But I'm pretty sure it isn't one as it stands.

 

[Salty Gibbon]

Yes, you're correct and I agree.

Close run thing though

Thanks

 

[Salty Gibbon]

Frugi

I noticed in your post # 306 that you were trading off 4 minute bars.

Do you think there is an advantage to be gained by trading 4, as opposed to 5 or 3 minute bars ?

The reason I ask is that I am forever changing from 5 to 3 and back again and I have never really made up my mind which is best for me, if there is a best.

They both seem to work and I tend to favour the shorter time frame as it reduces the boredom level when the bars form a little bit quicker.

 

[trendie]

Salty / Frugi,

based on your preferred timeframes, how many trades do you trigger per day?
if you are screen-based all day, how do you stop yourself seeing a pattern that isnt there, after several hours of non-action ? (bearing in mind, with sucha short timefraem, you cant really go away for an hour or two, can you )
(whenever I stay at home for a day, the boredom really gets me, and I start seeing things that arent there, and dabbling)