Forex trading strategy #4 (Simple 1-2-3 swings)
Submitted by Edward Revy on February 28, 2007 - 15:30.
And here we are again talking about the strategy that withstood the test of time. This Forex trading method is based on the same study of defining support and resistance levels and trading upon the fact of their violation.
A trading setup requires only an open chart and no restrictions for the currency or timing preferences.
Entry rules: Once the price makes it through the “pivot Line” - dotted white line on the figure below (drawn using the latest price peak) - and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.
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Hi Dan,
If you use MT4, try this indicator: Good_Macd.mq4
Otherwise, don't worry, 1 line MACD works the same as 2 line.
Regards,
Edward
This strategy is amazing! just amazing! It really seems to be 100% accurate.
My only question is, why? Why does it work? Why do prices breakout after 1,2,3 formations? whats so special about them? Can anyone explain to me the market mechanics of it? The only way to make it even more foolproof is to see whether the logic behind it is sound.
Explain the mechanics of the 1.2.3.
http://transcripts.fxstreet.com/2008/12/monthly-webinar-part-1-the-123-c...
Hope this help's..
Hi user
Thank you for that link, it sure does help.
hi edward,
123 setups were treated by most ppl as reversal patterns but we can actually use it as continuation patterns as well right? just like the 3rd(blue) longs in your diagram.
so i think it all depends on the magnitude of the wave from point zero to point 1 right?
It surely can be traded as continuation pattern.
It will all depend on price momentum and proximity of support/resistance levels.
Regards,
Edward
I think this is one of the best systems to use if during breakout you got out too early! I try to risk less with each reentry.
Alex Liu
today... i tested this strategy on GBP and AUD, ( on 1 Hour chart from 9 GMT till 13GMT...you can easily notice a 123 setup formation there...the very first strategy from FSR that gone tested by me)
i entered the market with multiple lots, 2 lots...soon as my initial target,achieved...i moved the second position's StopLoss to Break Even Point...and let it ride the trend as far as it can...nothing to worry, since the trade has changed to "can't lose situation"
in just about 4 hours, i was able to score 100 points of profit... without any serious drawdown....amazing!!
this strategy obviously has high level of profitability,reliability too!
hey you.. edward revy (and the whole team too)...you have brother in jakarta, indonesia!!
Thanks a million thanks, i just found this website a month ago,this surely is ...king solomon's treasure.
in 30 years of mylife, there arent many people like you i met... thanks for your kindness
-rockrobb of jkt-
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