Hey Harold what is your success exectuting it that way? How long are you trading it that way? AUD/USD on the 3hr chart seems to be an ideal candidate for such a punt right now
Hey Harold what is your success exectuting it that way? How long are you trading it that way? AUD/USD on the 3hr chart seems to be an ideal candidate for such a punt right now
the phil newton audience use also an alternative egy, and they call it the 123-45 at whichOriginally Posted by ;
4 is the pullback from triggering the 2 aspect
5 is your transfer down-up to complete the pattern.
Imho, I like this to an early entrance, since the likelihood of the pattern neglecting declines significantly in contrast to an early entrance. In this case, the risk is that there's no pullback and you overlook the movement entirely.
Either way, what counts is the pips you make, and not the particulars of the method. I too sometimes take the early entrance in a similar way as you do, but have been increasingly avoiding it for the absence of a design pattern.
Hi all,
I chanced upon this thread as I did a search on Price Action Trading (candles/ chart patterns etc.).
Just like to pop in and say hello. I using a setup that is similar . The author called it Trend change 1-2-3...(thomas bulkowski). It is pretty effective and I prefer it as there is logic to it. Actual EAs doesnt work for me.
So far its all winning transactions. thumbs up!
Happy trading, allow work towards our 1st million
What, You are not there yet?Originally Posted by ;
Oh, I think I see the problem. You have posted 13 times.
I've seen Phil Newton's movies; they're really great. . .his calmness is indeed inspiring (if this makes any sense. lol).
Can it truly work about 70% of the time? If so that's fantastic! I recall he said it is a really typical pattern and could be seen about 2 or 3 times each week each currnecy pair.
A little quick math:
Let's assume we could discover a 1-2-3 installation 5 times each week. If the 3-2 distance is 50 percent of the 1-2 distance and if our goal is a measured move of the 1-2 distance added to the 2 facet and also the risk is the 3-2 distance (put a stop just beyond the three facet ). . .then that imply the reward/risk ratio is 2/1.
With that assumption: Should you risk x% of your account on every trade, then you could potentially make 2x percent. . .Assuming 70% success rate, the expected return is: (0.7)*2x - (0.3)*x = 1.1x
For instance, let's say you risk 3% of your account on each transaction (and consistently compound profits/losses after every trade so it's always 3 percent of what's on your account at any time). Then the expected return is: 1.1*3% = 3.3%
At 5 trades each week, your account is expected to grow to (1.033)^5 = 1.176, i.e. your account should increase by 17.6% each week. This could compound to (1.176)^52 = 4583-fold per year! So in the event that you start with $1000 in your account, you should have $4.5-million at the end of the year!
Wow, I am excited now! Ok let's try and work on ways to find clear signs. . .Ways to be certain that there is a 1-2-3 pattern and we're not only looking at noise. Anyone have any insight as to which currency pairs, time frames, and any overall pattern-spotting procedures work best? I am thinking of maybe looking at renko charts or purpose figure charts to filtre out some noise. . .this could probably be achieve only using a low and high group filtre on a short-period momentum or rate-of-change indior...
I wrote a program to plot renko charts, acutally tacky renko charts (meaning you can specify a parameter for the minimum number of cubes prior to a reversal of management is plotted). This may help cut out some noise and make the 123s easier to spot.
You can get my app at this thread:
https://www.forexforum.co.za/trading...cilicious.html
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I've recovered my attention in 1-2-3 pattern, and therefore are trying to gather related information.
There was this thread EW and 1-2-3 pattern by BigT4x in oanda forum.
He was also claiming high accuracy like 80% or something.
Now that I'm trying to revisit the ribbon, it seems the thread is gone.
Does anyone have a copy of his ribbon?
Could you upload it?
Thanks.
If it works the 70% of the time for every 10 trades we buy 7 win trades and 3 reduction transactions, if in every trade we risk(x%) the same we aspire to win (x%) in order 10 trades we'll get 7x % - 3x% = 4x %, if we can find the installation 5 period for week so every two weeks we'll get 4x % of return, if we risk 3 percent every trade so we've got:Originally Posted by ;
12% every two weeks rather than 17% weekly.
Thank you to discuss your machine Donadoney
Pairing
Martinez
I use 1-2-3 configurations in the dailies as part of my trading arsenal, and it functions nicely. Even better when coupled with theearlky entry method that somebody posted before, simply have a tight stop until it hits the pivot point at #2 since it may bounce back if it's a false breakout.