1-2-3 Trendline Strategy (Requesting Feedback)

[bill144]

This is a strategy my mentor taught me and I want to hear your thoughts about it. Basically, the strategy is finding a starting point in the bar/line/candlestick first, then forming a trendline from the starting point, to the high (Point 1), then another trendline for the low (Point 2). As the trend goes back up, if it goes beyond Point 1, that's where you take a Long Position with a Stop on Point 2.


Below is a sample of how that's done on the Euro Futures on a 1 min Chart:
http://img132.imageshack.us/f/123systemsample.jpg


I'd like to know your thoughts of this and how can it be improved, if any.

 

[wackypete2]

If you are using this strategy here are a few tips for improvement:

1) Always follow the trend. (your sample trade does this just fine)

2) Look at the entry point on your chart. At your exact entry price then dropped. As long as you are following a decent trend you should enter closer to Point 2 just after price begins to move back up and exit at point 3. The banks, hedge funds, and institutions know your original strategy like the back of their hand so they will be willing to sell to you and thousands of other retail traders at Point 3 then drive price down so the weak hands will bail out or get stopped just below Point 2, then price continues back on the decent trend.

3) No matter what advice you get or methods you use there is no substitute for actual trading and experience. Find what works for YOU.

Peter

 

[kalott]

http://www.trade2win.com/boards/price-volume/13451-1-2-3-formations-ross-hooks.html