Joe Ross's 1-2-3- pattern - Advice?

Deuxieme

Newbie
2 0
Hi guys,

Joe Ross wrote the Law of Charts which is fantastic free PDF about trading 1-2-3 patterns and the "Ross Hook"- Google Law of Charts to get the free PDF - it is fantastic I think.

What Im struggling with is how you know point 1 of the 123 pattern. Following a downtrend is it the absolute bottom before the turn, going up then to point 2 - OR is point 1 the peak after the rise?

Seriously though this is a very intriguing study and I think the "Law of Charts" is the missing piece in my Forex jigsaw puzzle!(y)
 

elitejets

Established member
943 435
The 1 is the low or the high that is not broken and holds as the low or high.
The 2 is the swing that breaks the trend (depending on what tools you use), either by breaking out of a trend channel, trend line break, etc.
The 3 is the lower high that is your short entry or the higher low that is your buy entry. Depending on what trading tools you use that could be a 50% or 61.8% fib retrace or a pullback to a moving average, pivot, or retest of a S&R level.
 

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alfiemal

Active member
112 4
Hi, i have been looking at this simple system myself. There is a good thread on Forex Factory about it aswell. There are a couple of different ways to trade it with regards target price and stop position. I follow the same method as Paulus on FF...
People on fxfactory have backtested it and i have also been testing it (not trading it) over the last couple on months and it seems brilliant, hardly any losing days never mind weeks. I have been looking at forex only eurusd & cable, day trading the 5min charts, between 7am & 4.30pm GMT. I am deciding if i should start trading it soon. If i would have traded with a £100k account risking 1% per trade i would not be far off double...
Regards
 

andycon

Active member
170 12
Hi, i have been looking at this simple system myself. There is a good thread on Forex Factory about it aswell. There are a couple of different ways to trade it with regards target price and stop position. I follow the same method as Paulus on FF...
People on fxfactory have backtested it and i have also been testing it (not trading it) over the last couple on months and it seems brilliant, hardly any losing days never mind weeks. I have been looking at forex only eurusd & cable, day trading the 5min charts, between 7am & 4.30pm GMT. I am deciding if i should start trading it soon. If i would have traded with a £100k account risking 1% per trade i would not be far off double...
Regards
I have just read this thread on FF start to finish (took me hours as there were 90 posts), it looks good, I was looking for a system to use on 5 min charts and I like the clear rules. Have you been demo trading it, could you let me know your results.
 

Hoggums

Senior member
2,176 877
 

Chartsy

Experienced member
1,129 82
a 123 recenty failed on the eurusd daily chart when it slammed into a big swinging dick support level
 

alfiemal

Active member
112 4
I have just read this thread on FF start to finish (took me hours as there were 90 posts), it looks good, I was looking for a system to use on 5 min charts and I like the clear rules. Have you been demo trading it, could you let me know your results.
I have not actually been demo trading it as i have been working during the day. But what i do is have a look at the fx pairs eurusd and cable every night and have a look at the trades i would have taken using the 123 with the stops and entry as per the FF thread rules, which i know is not trading but it has been good for confidence with the strategy.
Like i said risking only 1% has still given me a lot of profit over just a couple of months, nearly double. Some people over on the FF thread are risking 5%/trade and making alot more, i personally prefer smaller risk as with 5% a bad run could damage your account too much for my liking...
 

andycon

Active member
170 12
I have not actually been demo trading it as i have been working during the day. But what i do is have a look at the fx pairs eurusd and cable every night and have a look at the trades i would have taken using the 123 with the stops and entry as per the FF thread rules, which i know is not trading but it has been good for confidence with the strategy.
Like i said risking only 1% has still given me a lot of profit over just a couple of months, nearly double. Some people over on the FF thread are risking 5%/trade and making alot more, i personally prefer smaller risk as with 5% a bad run could damage your account too much for my liking...
Ok thanks, I will give it a go and let you know how I get on.