BF1 said:
Whos 1-2-3 system? There are many authors that mention 1-2-3 highs and lows with different modifications. There is also something called a 1-2-3 climax pattern.
The 1-2-3 that I'm a user of is Joe Ross' definition. I also know that there is a PDF on 1-2-3s by an author I can't remember the name of. Vic Sperandeo also has a definition I think.
Could you be more specific?
A Joe Ross thread:
http://www.trade2win.com/boards/showthread.php?postid=151886#poststop
The 1-2-3 Climax Pattern:
http://efuturevision.com/egclimax.php3
Well the 1-2-3- system I was referring to is a PDF by Mark Crisp, I didnt know of any others. Presumably the principle is the same?
Just wondered if people trade off these alone or whether they are not reliable enough to trade without additional signals?
Just wondered if people trade off these alone or whether they are not reliable enough to trade without additional signals?
Skog said:
BF1 said:
It's the same as the one Joe Ross teaches. It is not actually Mark's or Joe's formation, they just teach it. It has been know for quite some time.
If you visit this thread you will find a bunch of people using and discussing 1-2-3 formations as well as Ross Hooks:
http://www.trade2win.com/boards/showthread.php?t=13451
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That pattern has been around since the first chart was ever seen. Once you get used to 'seeing' it you will pick them out all the time. Take a look at any chart, any time frame and see for yourself how reliable they are.
It is more of an exhaustive move where it can't break through it's previous high/low and begins a new trend in the other direction. So it is good for that aspect of it. But the first 123 quite often turns into a bigger 123 with the original move encompassed into the bigger one, but still going in the same direction. By that. I mean that just as the original 123 qualifies, it brakes down just as quick and often on the same bar, (dependant on what time frame you are looking at).
On a 5 min chart it will appear to be the start of a good move, yet on a 1 hour chart it will only be a ripple in the other direction and may not qualify for some time.
The 123 has to start somewhere and this is why it so often breaks down (to begin with). They know where the majority of traders place their stops. Talk about easy money!
So Ardhill's right no one can claim that it belongs to 'them' though some will suggest that they have discovered a 'new' system, then try to flog it to you for a few quid. Although Joe Ross has a trade mark on his 'hook' I believe.
In answer to the question. Yes. It's as good a point to take a trade on as any other. You just have to get the right 123 formation. This is why a lot of traders use additional entry criteria to assist in the 'right' 123. On longer time frames the set up is easier to see. Easier as well if you use a line chart to begin with.
It is more of an exhaustive move where it can't break through it's previous high/low and begins a new trend in the other direction. So it is good for that aspect of it. But the first 123 quite often turns into a bigger 123 with the original move encompassed into the bigger one, but still going in the same direction. By that. I mean that just as the original 123 qualifies, it brakes down just as quick and often on the same bar, (dependant on what time frame you are looking at).
On a 5 min chart it will appear to be the start of a good move, yet on a 1 hour chart it will only be a ripple in the other direction and may not qualify for some time.
The 123 has to start somewhere and this is why it so often breaks down (to begin with). They know where the majority of traders place their stops. Talk about easy money!
So Ardhill's right no one can claim that it belongs to 'them' though some will suggest that they have discovered a 'new' system, then try to flog it to you for a few quid. Although Joe Ross has a trade mark on his 'hook' I believe.
In answer to the question. Yes. It's as good a point to take a trade on as any other. You just have to get the right 123 formation. This is why a lot of traders use additional entry criteria to assist in the 'right' 123. On longer time frames the set up is easier to see. Easier as well if you use a line chart to begin with.
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commander-keen
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Profit Target
The profit target is the width of the patter projected into the furture from the number 2 point
The profit target is the width of the patter projected into the furture from the number 2 point
founders.forex
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Do a search for Mark Crisp 123 system, or others. You can get many insights from this.
rahimseven
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It works very well. Joe Ross calls it the Law of Charts. You can download it free from his website at tradingeducators.com
I use it now. I find my entry on weekly charts and I manage the trade on the daily. Works Like a charm. Also worth mentioning is the traders trick entry and ross hooks as other entry levels. Works with any market. Money management is what is key.
I use it now. I find my entry on weekly charts and I manage the trade on the daily. Works Like a charm. Also worth mentioning is the traders trick entry and ross hooks as other entry levels. Works with any market. Money management is what is key.
