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

i still do not understand that entry points when i tested it on a previous market i have me point 1=87.702, point 2=88.800, point 3=88.130 applying the buy entry formular i have 88.130+(88.800-(87.130/4))=155.1475 approx. 155.1500 so i dont really know how that will be a buy entry am a bit confused can u pls put me through may be i get things mixed up the currencies are U/J 30min at 11.00 18/12/2008 u can view the pics below

Hi Al,

This tool should be within the Platform by default.
Unlike indicators, tools cannot be uploaded.

Try downloading a Platform from another MT4 broker to see if you will be able to find Fib Expansion there.

Regards,
Edward

P.S. I was told you can try IBFX - they have the FE tool.

Hi Edward,

I can't find the Fib Expansion Tool on my Metatrader control panel. Can you post a download for us please?

Thanks for all you do!
Al

You're Welcome Edward; Best Regards: Manus168 Brrrrrrrrr .... :)

Manus168

That's some interesting addition.
Thank you!
I should try it out.

Regards,
Edward

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

Hello everyone,

This is an update on 1-2-3 exit strategy.

To project exit targets we’ll be using Fibonacci Expansion (FE) tool.

(Short guidance to getting FE tool on MT4 platform:
Right click on the menu panel from where you usually select a trend line tool and choose "Customise…"
A window will pop up. Choose and add Fibonacci expansion tool there.

When applying Fibonacci Expansion to the charts, start with Point 1. Then align FE to touch all 1-2-3 points.
Your profit target will be the 161.8 Fibonacci Expansion level.
Simple and working well!

Below are just some examples:

I've also added Stochastic just to show how you can pick tops and bottoms for your 1-2-3 calculation without too much efforts.

Happy trading!
Edward

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

Thank you Edward,
great system!

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

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

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 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.

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

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