Forex trading strategy #13 (Simple 1-2-3 swings)

Hello Edward:
I am using this strategy with time frame of 60 and 15 minutes charts:
When I am using the 15 minutes or 60 minutes time frame I am using time frame I also use the pivot points placed in the web site Action Forex.
My question is: Am I right? Am I using the right pivot points to use this strategy?

Thanks in advance,
Regards,
Javier

Hi Javier,

I think I have created some confusion here by calling those dotted white breakout lines as "pivot lines".

What I meant is that they are just the "important lines" that call for entries once being broken.

So, it is not about calculating Pivot points for the day.
It is about finding tops and bottoms as they appear and connecting them with "important lines", which act as support/resistance and highlight trading opportunities on the breakouts.

Please let me know if there was something else you were looking the answer for.
Regards,
Edward

Hi Edward,
The 123 trading strategy is great! I have been using it for a while now but for the past 3 weeks have added the MACD to add strength to the breakout of point 2. This has of course kept me out of some winners, but MORE importantly it has helped me stay out of losers and a lot of sideways and fake MACD crossovers.
I trade this strategy with the mini russell futures. Perhaps someone is interested in the way I place stops and entries and targets with this market. The minimum tick is.10 = 10.00$. My entry is always 2 ticks above or below point 2. I always place my stops above below point 3 and round. Lets say the high at point 2 is at 750. 30. I will round up to 750.60 for my stop. The idea behind this is that markets like to go to whole numbers like 750.00 or 740.50. So when I round my prices will usually end with: .40, .60, .10, .90. Hopefully that made sense. What I like to do with targets is always use 2 contracts. One with a small sized target and another that I like to call a runner contract. The idea is to look for a small amount of the markets average true range on the first target and then once its hit you trail your stop to break even. Then look to trail stops on your remaining contracts' profits. The second contract is the one that can really open you up to a lot of profit especially if its a nice long trend. I like to use support-resistance areas and pivots as targets for my second contract. Hope this helps someone out.
Thanks again.

Thanks a lot for sharing with us your thoughts and trading method.
I'm sure it will help many traders in their research of a winning strategy! I also read your comment with interest and made own notes. Thank you!

Best regards,
Edward

Hi,
Great and superb system, my concern is on the exit strategy,I am looking at the option of finding the difference between points 2 and 3 and projecting that forward for my exit but my question is which price options (high, low, close and open) am I going to use for getting that difference either for buying or selling position.

Together we can it better
Arua

Hi Arua,

For calculations you should use the lowest low and the highest high of point 2 and 3.
For example, if we return to the first screenshot with AUDJPY:
http://forex-strategies-revealed.com/trading-strategy-123swing
and look at the first 123 case (in white): point 2 is the swing low, point 3 is the swing high.
To calculate the difference we take the Low of the candle at point 2 and the High of the candle at point 3.

Kind regards,
Edward

Thank you Edward,
great system!

Edward,

You wrote that strategy doesn't advice on stops.
Could you give us some guidance on stops, please.
Thank you!
your website is amazing!

Ria