GBP/USD 123's

[shabec]

There is a possible 30M 123 setting in the EUR/USD. Just I'll not be around long to see if it will setup and take the trade if it does .

 

[Pipmaster1]

Thats pretty good one. might turn into a 60 min one. Too bad its Friday. Have a good weekend!

 

[liu7208001]

I had to remind you , 123 must have some percentage of successful in one term of time frame, for example daliy or weekly,under those frame, no high probility, so you maybe waste your time to deal with the short time frame, such as 1H,15mins.5mins, so on,

 

[Pipmaster1]

I had to remind you , 123 must have some percentage of successful in one term of time frame, for example daliy or weekly,under those frame, no high probility, so you maybe waste your time to deal with the short time frame, such as 1H,15mins.5mins, so on,

Thanks for your thoughts. However after watching this particular setup in the GU for over 2 years there are really high probability setups in the 30min time frame and bigger. You do lose probability in the smaller time frames. I use a combination of the 123 set up and price action trading. Price action for me always starts with the 30min chart and seeing where RSI 14 and RSI 3 are. So when you have a 123 setup and the 30 min( with the RSI's) context agreeing in direction you are starting to get into the high probability setup.

The other thing I've notice that these setups come and go, some months you have multiple trades per weeks and some months you barley get one trade. So I try and trade what the market gives me and not over trade my setup. Trading is for the tortoise!

Also the 5 min and 1 min charts that I sometimes post are only trigger charts, showing my exact entry. They are only used to reduce the size of the stop, and of course increase the number of lots and the profit of the trade. They are not used to confirm any set up. Typically the 15 min is the smallest time frame I use for a 123. I love this stuff....

 

[Pipmaster1]

I've been watching this 4hr set up. Its not very pretty but the #2 has been broken. Just waiting for a retrace now.

 

[Pipmaster1]

So its a really sad thing when the stars are aligned and the stop is too big to maintain proper money management. I really don't like trading just one lot, so I let this set up go. This is only a problem with a small account size. But here is some pictures of the set up anyways.

 

[Pipmaster1]

LOL, of course this wont be the first time I would have been wrong!!!!

 

[shabec]

So its a really sad thing when the stars are aligned and the stop is too big to maintain proper money management. I really don't like trading just one lot, so I let this set up go. This is only a problem with a small account size. But here is some pictures of the set up anyways.

Hey can you post your rules for trading 123's. Unless you already did on a older posting already.

Thanks

 

[Pipmaster1]

Well these are my rules, however keep in mind that this is how my eyes see the market and may not work for any other trader.

Having said that I usually always start with my 30 min 123 chart. It has only a MACD on the bottom and Moving Average on it. I look for a top or a bottom to be a potential #1 and then price needs to find resistance at the MA and in doing so it forms the #2. This is where I change my time frame to adjust where the MA and price meet. For example, say on a 30 min chart the candle closed over the MA which would not qualify as a #2, but if you change the time frame to a 60 min it may look perfect. Now you have your #2 and wait for the retrace to form a #3.

I like to see at least a 61.8% retrace to form a #3, and will be looking to enter the trade at either a 61.8% failure or 76.4% failure. It is important to realize that the whole setup is just a potential 123 at this point. Which is why entering in at the #3 is not the highest probability entry point.

The 123 is not solidified until price breaks the #2 point, then it's a true 123. After the #2 point is taken out the higher probability entry point is to then wait for price to retrace again. Preferably a 61.8% or 76.4% failure on the move from the #3 to the price that is now higher/lower than the #2.

So I hope that helps, there are in my mind two places to enter this formation. At the #3 and on a retrace after the #2 has been taken out. The best setups are when you get to enter at both points. The profit on those setups can easily approach 100%, so I don't mind waiting for them. I will say I haven't seen a good month of consistent setups since November....I think we are due for some good trades!

 

[liu7208001]

hi, everyone , I am one of student of this school, this school is useless, and give you some wrong direction for new trader, they tell you first from short term, that is not right, for short term, market is not have high probility, and is not follow some rules, the students in this school, have no one win the money, this guys , is show some ad,for this school, he is lier. the school, which he metioned, is not good. borther, please remember, if some one is relly good at trade, why he have to take care of school, the real skill is come from free knowlege which come from real successful trader, which they don't need to have money with beginner, because they can get big money from market

 

[Pipmaster1]

LOL, I think what you are trying to say is that you didn't like the trading school..??? This is sad for you! I happened to love it and learned a lot. But everyone is different, and that doesn't make me a liar. I hope you found something else and hope you are successful in the markets. You should share the success you have gained from this free knowledge you mentioned.

 

[Pipmaster1]

Looks like a nice 4hr 123 trying to setup. There a few things about this one i like, for example the #2 forming at the 50% failure of the big move down. Its nice to see the intersection of price with the Fib and the MA. The MACD crosses in the middle between the #1 and the #2 which is the ideal place for the cross. Also the potential #3 is the 76.4% at 1.5399, which adds the 1.5400 psychological barrier that could trip up the sellers. If price fails there and there is no follow through from the sellers it may signal a trend change. Price is coming down a little fast for my liking, only time will tell!

 

[Pipmaster1]

There was a trigger @ 5:31, however I let it go. Thats an awful lot of red to jump in front of. And there is something about price forming the #2 and the #3 in a 175 pip or so candle. The 200% line is based on the #3 shown, assuming it holds.

 

[Pipmaster1]

Looks like a 20 min 123 is trying to set up. There was a 1 minute trigger @ 2:04, at the formation of the #3 point. Unfortunately I was not at the charts at this time. Its nice to see triggers around the London open. I'll wait to see if price breaks that #2 point and retraces to give another entry point.

 

[Pipmaster1]

Price cam close, it still may hit the 200% line. I would have place a limit around the 1.5160 price. Time well tell.

 

[Pipmaster1]

Looks nice when it all comes together! :clap::clap:

 

[Pipmaster1]

Lets see what this 60min ends up doing. Again I wasn't at the charts when the #3 formed. This is getting annoying, ha!

 

[Pipmaster1]

I have been busy the last few weeks and have not been able to give the charts the time they need. Which is why I'm just now seeing this 6hr 123.

 

[Pipmaster1]

Nice break of the #2 point. Maybe on Sunday or Monday of next week we'll get the retrace we need to get in this setup.

 

[Pipmaster1]

Well it looks like i missed the 6 hr 123. too bad, i missed the 6:02 trigger by about an hour!