Live trade I just entered using the 1,2,3 reversal strategy.
This strategy seeks trend reversal. It does not trade with the trend.
The count starts with 1. 1 is always the lowest or highest point as if you were assuming a bottom or top.
2 is the next swing after 1.
3 is the next swing after 2.
3 is never lower than 1 in a bottom nor higher than 1 in a top. It should be between 1 and 2.
Trades occur after 3 is made and price moves to exceed 2. A trade is entered when price exceeds 2 by 1 pip.
It is common to place a pending order after swing 3 is made.
If after swing 2 is made price moves below 1 the pattern is invalidated and the count starts over.
Stop loss is at 1.
TP 1 is 100% the distance of 1 to 2 and TP 2 is 200% the distance of 1 to 2.
Once swing 3 is made place your orders and SLs and let it run it’s course win or lose.
Sorry these are out of order but I think you can figure it out.
EURJPY pending
Better image I hope
I hope the PDF will help.
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My USDCAD got stopped on Friday. I wish I would have been watching GBPUSD. The 1,2,3 in the green square formed after the first 1,2,3.
GJ. You can see why it is important to plan your trade and trade your plan and let your winners run. Getting out early will cost you pips.
So how do you plan your trade and set targets once triggered??
See the PDF in post 6:)
What time frames are you using? and is this specific to a time frame/currency pair?
Thank you. 