Forex trading strategy #4 (Simple 1-2-3 swings)

Hi Edward,

Mind help me look at the pic above to see if correct?
Entry candle is at the red dotted line.

Kit

Hi Jas,

a screenshot would help, because I'm not sure I understand your question correctly.
When MACD is in the Sell mode, we need 1-2-3 to enter.
If 1-2-3 has formed before the MACD signal, then we need to wait for MACD to get into the Sell mode and then enter, this time without further 1-2-3 confirmation.

Best regards,
Edward

Hi Edward,
Can I ask to confirm, we do not need the setup of 1-2-3 in the sell mode of MACD, we only need the candle at the point of entry to be in the sell mode. Am I right?

Jas

Le cose più semplici sono a volte le migliori!!!
.....qualcosa a che fare con l'uncino di J.Ross
Complimenti grande scoperta!!!!
p.s. consiglio a tutti da evitare con b.b. strette in lateralita!!!...vero???

The simplest things are sometimes the best! ..... something to do with the hook of J. Ross Congratulations great discovery!! P.S. advice to all be avoided with b.b. narrow lateral !!!... right??

To AG: MACD should be above zero to buy, and below zero to sell. 1-2-3 setup doesn't have any zero level to refer to.

To Kit: yes, that's correct.

Happy trading!
Edward

Hi Edward,
Mind if you me take a look on the pic below, to see if I have done it correctly?

Regards,
Kit

Hi Edward,
There is something which i like to clarify, we do a 'buy' when MACD line and the setup of point 1-2-3 is above zero, am I right? Or just point 2 and 3 above zero?

Thanks
AG

Hi Adi,

when you use Fib expansion, you have to connect 3 points.
If you use MT4, select Fibonacci expansion tool, start with Point 1, drag the tool to point 2. Stop there. You've now got two points connected with the third one still hanging in the air. Extend the line of the Fib tool and connect it to point 3.

Best regards,
Edward

Hi Edward,
it seems that this strategy is profitable... but i still wondering, how do I distinguish between applying Expansion for buy or for sell?

Thanks..
Adi.

Dear Manus168,

I refer :

+++++++++
For Entry Point we can use:

Sell ENTRY :

Point 3 - (Point 1 - point 2 / 4)

BUY ENTRY :

Point 3 + ( Point 2 - Point 1 / 4)

All the Best;

Manus168
+++++++++

I seek your clarification.
Is it Point 1 divided by 4 in the case of buy entry or is it Point 2 minus Point 1 then divided by 4?

Thx in advance.

With special thanks to Manus168,
here is a link to custom 123 recognition indicator:
http://forums.forex-strategies-revealed.com/123-pattern-recognize-indica...

Regards,
Edward

Hi Joyce,

we are looking at MACD lines, not the histogram.
To match it on MT4, here is a custom MACD: MACD_2_Colour_HISTOGRAM.mq4
(Change MACD settings to standard 12, 26, 9, but you can also test with those new settings)

Best regards,
Edward

Hi Edward,
Using MACD as "trend indicator" do we look at the histogram or the signal line?

Thanks Joyce.

Thank you, rockrobb

I'm glad you liked this simple but effective strategy; thank you for your feedback and kind words.

Best regards,
Edward

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-