Forex trading strategy #4-a (1-2-3, RSI + MACD)

Hey guys -

Go to trading-naked.com/123-reversal.htm

Vic Sperandeo , a master trader , invented 1-2-3.

You do not need anything else . No moving averages , MACD ,

etc .

Just price action and trendlines.

George F .

Oops , go the " naked guy" again. He suggests using 20 EMA for trend , and CCI 14 for DIvergence , along with " Trader Vic's " 1-2-3

method. Study BOTH of his chart examples. Any feedback on this is welcome . Remember , Vic 's version gets you in a trade earlier than

the price that is projected from point 2 .

Oh yes , I also use CCI for help on Exit confirmation .

George F.

Additional comments to add to 5-21 message

You can add EMA 20 and CCI 14 ( for Divergence ) to Trader Vic's 1-2-3 .

George F.

hi.. ur using 1-2-3 methods by mark crisp? anyway, I thought the method is working this way:

the 3rd must be shorter / lower than the 1st candle?

User - Who is Mark Crisp ?? Trader Vic is the guy to follow as shown above .

A simple trendline drawn between point 2 and point 3 gets you in the trade sooner than the method introduced by Lino ,( good as it is ) .

Then you can add CCI 14 and use Divergence for confirmation of the entry , AND to EXIT the trade when the Divergence is Reversed .

Also , you can add 20 EMA , but not necessary .

Once again , go to trading-naked.com/123reversal.htm and study the 2

chart examples !!

George F.

Hi George

I havnt been on here in a while, but finally after trying to find ways on getting better entries i had a wake up call.

I just asked myself a few questions then realized what we all learn t rite from the begging, the trend is your friend. Simple as that!

Stop trying to use different lagging indicators and use some common sence, if the trend is up stick to the trend. If on a shorter time frame the trend is down, the 1-2-3 setup is mainly used as a trend reversal, so look at the bigger picture first and use the smaller time frame charts to spot your reversal.

I have been applying that simple approach and dont take my word for it, have a look for yourself.

I wanted to post this so that maybe some new comers will not wasted months trying to find the best lagging indicators to get in earlier than point 2, be patient and stick to the trend, you wont be sorry!

Wish you all the best

Cheers Lino

HI Lino -

I guess I did not make myself clear.

Trader Vic's 1-2-3 uses a trendline from Point 2 TO 3 . You enter at the

trendline BREAKOUT just after Pt. 3 , NOT EARLIER than Point 2 , which is

leg 2 on the

letters M or W pattern that the 1-2-3 bars or candles form when

completed . You do NOT need any

indicators at all. The CCI 14 IS less lagging than other indicators , but is

NOT needed , nor is EMA 20 required either . The Trading-naked website

added them as a suggestion ONLY , on their second chart , NOT as a

requirement.

Too many traders use indicators as a crutch. They are widely used , but

oversold . Price action , looking for the letters M and W to shape up ,

and simple " eyeball " trendline breakouts work ! The 1-2-3 has been

around a very LONG time precisely because it is accurate without any of

the " bells and whistles " , that many traders insist on adding , which only

clutter up the screen. They may look pretty ( especially the multiple

moving averages or " rainbows " ) , but that's all . The " KISS " principal is

correct]. Do not tinker with it . Sorry for all the yelling , but

I do not know how to make this already simple approach any simpler !!

George F.

Lino , and others -

The 1-2-3- is a simpler version of the Gartley pattern invented in 1936. It

is similar to a Flag and the Elliott wave .It worked then and it still works .

Larry Pesavento, who is a Harmonics devotee , added Fibonacci ratios. The 5

legs in Gartley include the 4 legs that make up the letters M or W in the

1-2-3 . Google or Yahoo Gartley for details.

George F.