1-2-3 trading Forex

With over 18 years experience in the casino and detours all over the world, I decided that it was time to stop and focus on my passion for trading on financial markets. It took several years to move from a casual one-time investment to the regular daily commerce. Being an active trader, I regularly conduct seminars on trade. At the moment I finished my book

"Trading for Beginners".
This specific technique was used for a long time, and I first saw it applies to the futures market. Since then, I saw that traders use it in almost every market and when it is applied properly, it can be amazingly accurate entry levels. Let's first look at basic concepts. During any trend, either ascending or descending, the market is forming small peaks and troughs, as shown in the chart.

The problem is how to know when to enter the market and where to implement the exit. This is the question that is designed to answer 1-2-3 method. First, let's take a look at the usual 1-2-3 model:

A good and simple way, but it is still not clear in what circumstances is a bargain, and what not. To do this we add the indicator. You can use almost any indicator, the method, but I prefer to use the MACD indicator with the standard settings - 12,26,9. With the addition of an indicator, it now looks as follows:

Now let us dwell on one important aspect, namely the rules of trade. Trade rules are as follows:

Ascending Trend
1. Since this method works best as a turning model, it requires a previous downward trend.
2. Wait until the MACD makes a buy signal and the shape model 1-2-3.
3. As the market retreats back, forming a point 3, MACD should remain in the shopping zone, or only slightly going into an area of sales.
4. Place an order for purchase of 1 point above the point 2.
5. Place a stop-order item 1 point 3 below.
6. Measure the distance between point 2 and point 3 and the design is the distance up to receive the level of output.
7. Point 2 should not be lower than point 1.

To trade in the short side will go back option. As the market, you can move your stop-order 1 point below the last minimum (trough with an upward trend). You can also use a break from the trend to exit the market.

Consider a few examples:

There are many varieties of model 1-2-3, but the basic concept has always remained the same. Try experimenting with it at your favorite temporary format.

Forex Magazine
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