GBP/USD 123's

[Nasty Girl]

Prompt, in long-term the pound is better to sell perspective now or to purchase? And why?

 

[Windowsill]

Prompt, in long-term the pound is better to sell perspective now or to purchase? And why?

No one on here is really interested in the long term. That would take a more fundamental approach that is not particularly tradeable in the short term/medium term.

 

[Nasty Girl]

Tell, and what duration of bargains for you?

 

[Windowsill]

Tell, and what duration of bargains for you?

1/5 min

 

[Nasty Girl]

But after all on durable intervals it is more favourable to work... The spread not so influences profit. Or I am mistaken?

 

[Pipmaster1]

Nasty Girl,

ya know, if you take the time to read the threads you are posting on you might have a better grasp as to what style of trading we are focused on. Also writing in complete sentences is always a plus! wish ya the best!

 

[kissaki]

hi Pipmaster1, i see that you are using limit order for your entry, and how will you know that (2) is already the top ? it is interesting strategy.
So far i place the order at 50% between (2)-(3) and SL below the (3).

 

[Pipmaster1]

hi Pipmaster1, i see that you are using limit order for your entry, and how will you know that (2) is already the top ? it is interesting strategy.
So far i place the order at 50% between (2)-(3) and SL below the (3).

Hello kissaki,

You're entry point should work ok. I just prefer the 61.8% and the 76.4% retrace on the GU instead of the 50%, this also gives me a smaller stop as well. After a tons of studying at the school we came to the conclusion that the 61.8% is the "first battle line" and the 76.4% is the "last stand", at least in this pair. Every pair is different.

Also I don't use a limit order for my entry, I'm there in real time watching price when I hit the button, so all of my entries are market orders! Keep me posted on how you are doing!

Pip

 

[justtradin]

Hello kissaki,

You're entry point should work ok. I just prefer the 61.8% and the 76.4% retrace on the GU instead of the 50%, this also gives me a smaller stop as well. After a tons of studying at the school we came to the conclusion that the 61.8% is the "first battle line" and the 76.4% is the "last stand", at least in this pair. Every pair is different.

Also I don't use a limit order for my entry, I'm there in real time watching price when I hit the button, so all of my entries are market orders! Keep me posted on how you are doing!

Pip

I use the 61.8 and the 76.4 (especially) but I use limit orders unless I feel the market more accutely.

I have found that the biggest trend days and select patterns are also useful.

JT

JT

 

[Pipmaster1]

I use the 61.8 and the 76.4 (especially) but I use limit orders unless I feel the market more accutely.

I have found that the biggest trend days and select patterns are also useful.

JT

JT

JT,

I agree with you completely.Other patterns are very helpful to me in determining if the 123 I'm looking at could be a extremely high probability or not.

I'd really enjoy seeing some of your trades, perhaps you could post a pic of your next trade on here.

Pip

 

[justtradin]

Sure.Please keep in mind that the best traders have a hit ratio of 30%.

Tomorrow should be really fun.


JT

 

[Pipmaster1]

Sure.Please keep in mind that the best traders have a hit ratio of 30%.

Tomorrow should be really fun.


JT

Right on. I have right a hit rate of 52%. I'm excited to see what me record looks like by the end of the year. But you can see my current trading stats below.

 

[Pipmaster1]

Would ya look at that! I certainly don't get tired of seeing that. I have been watching this formation on the Daily chart for about a month now. It has been the main dictator in my overall price direction when looking at the smaller time frames. LOVE IT! :clap::clap:

 

[Pipmaster1]

Here is how that Daily 123 unfolded! Not bad for about a 25 day prediction!

 

[BSD]

Right on. I have right a hit rate of 52%. I'm excited to see what me record looks like by the end of the year. But you can see my current trading stats below.

That's all pointing very nicely in the right direction, good stuff !

 

[Pipmaster1]

Thanks Markus!

 

[Pipmaster1]

Here is a 4 hour 123 that is not looking too bad. I''ll keep my eye on this and hopefully price will retrace to the 76.4% line for a short entry.

 

[Pipmaster1]

I took that sell at the potential #3 on the 4 hour 123. I was a little late in pulling the trigger as you can see by the 1 min and 5 min charts. The trigger was the 2:50 1 min candle, however I ended up waiting for the 2:50 5 min candle to close. Cost me about 13 pips, oh well. On the 30 min RSI chart notice how the 2:30 candle is a 76.4% failure, this bearish action is nice to see right before the London open. I also as usual used a two limit exit strategy as the core part of my money management, so if price does hit my first limit and turn against me I'll be stopped out with a small profit. But we never know what will happen!

 

[Headless Chook]

I took that sell at the potential #3 on the 4 hour 123. I was a little late in pulling the trigger as you can see by the 1 min and 5 min charts. The trigger was the 2:50 1 min candle, however I ended up waiting for the 2:50 5 min candle to close. Cost me about 13 pips, oh well. On the 30 min RSI chart notice how the 2:30 candle is a 76.4% failure, this bearish action is nice to see right before the London open. I also as usual used a two limit exit strategy as the core part of my money management, so if price does hit my first limit and turn against me I'll be stopped out with a small profit. But we never know what will happen!

I haven't read the whole thread so maybe I've missed something...... But that trade seems suicidal to me going against such a well defined trend.

I have marked the ascending channel on my chart as well as the Higher-Highs and Higher-Lows that confirm the uptrend.

To trade the 1-2-3 here I would, at the very least, wait for the last Higher-Low to be taken out.......

 

[Pipmaster1]

Headless Chook,

You make a very valid point and your analysis is solid. However the nature of the 123 formation is a trend change. On this trade I could have waited fore the break of the #2 point and waited to see if there was a retrace, this would've have been the higher probability trade.

The trade at a possible #3 point is always the more riskier entry point. The things I was looking at was the Daily 123 had just hit its 200% line which corresponded with a Daily 76.4% line. Also the 4 hr chart was struggling at its 76.4% line. My main context chart which is my 30 min with RSI's 14 and 3 was looking pretty good as well. Both RSI were extreme along with the 30 min CCI.

As a secondary indicator I was looking at the 30 min Fibs sequence chart, the 2:30 candle failed to push through the 55 Fib Extension of 1.5190, the 4 hour 76.4% line was 1.5192, it looked as though price wasn't going to push through all of this and was exhausted.

Of course I was half wrong on that, it did ended up giving one last big push, but it failed to push through the 89 Fib Extension. and missed the #1 by pips.

Obviously I don't like it going against me like this, but if price doesn't break the #1 I think we are ok. I hope that explains my thinking and why I got in.