I’ve read & seen within the threads where the 123 is used across various timeframes & if I’m correct, all these setups are traded off the much larger support & resistance zones regardless whether you’re trading a short term entry or a long term one, right?
If that’s the case, the 1.30 level on EURAUD could be traded if a 123 appeared on a much shorter chart but for smaller profit returns. I have seen them appear quite a lot on 15 or 30 minute charts, but what you’re suggesting is to wait until a larger & more important support & resistance zone is in play & then go looking for the setup?
That sort of makes sense, but just want to check. Do you have any pairs on your current check list that you have already earmarked for this type of setup the next time around by any chance?
Yeah, but it’s not confined to just the 1-2-3. It’s the same deal whichever trigger you’re adopting.
The object of the exercise is to bet when the odds are stacked more firmly in your favor, & if you’re using the concepts shared on here, that involves playing up to & away from these pre-identified significant levels & zones in the direction of the current bias or trend.
Sure.
Betting pullback longs into 0.83 on nzd/usd would be an obvious zone to pay attention to on any further upside.
Same deal on nzd/jpy into the 65.50 zone.
The 1.0750 area on aud/cad is a rather shiny beacon too.
Don’t make a big deal over identifying them.
The obvious zones usually stick out like a sore thumb & if you can spot them without too much hassle, you can bet others who pay attention to that kind of stuff can too.
It’s very rare indeed that the price action fails to obey these spotlight zones, so you’ll get plenty of lead in time to get yourself set & primed.
There are also two pairs reacting off current s&r zones that offered pullback opportunities last week & will continue to, providing the bias remains intact.
Betting long pullbacks on aud/usd & short pullbacks into usd/cad until the trend swings get broken is the higher probability play on those 2, with clear target zones to aim for on both.
Thank you for those two posts.
I wonder if you have a view on EURUSD?
Sorry for the constant questions, but it’s interesting for me to see how the interpretations take shape with the current market as it’s unfolding right now.
I have 2 areas marked out on EURUSD & would like to compare them with yours if it’s not too much trouble.
Thank you again.
I can certainly offer a view but I think you’ll discover far smoother & cleaner opportunities to play it via other pairs including the Australian & New Zealand currencies, particularly the past 3 or 4 months.
Anyway, for what it’s worth the last major swing highlighted at the 1.23-2350 zone when it moved away at the end of May would be shaded in. Same with 1.27-2730 on the descent during the middle & end of June.
The former zone has acted as quite a magnet for the past month & the upper tier will likely act just as efficiently the next time price revisits.
I’ll leave you to work out the most logical lower destination zone, if you haven’t already done so
But to be honest that pair doesn’t interest me at all at current levels, however your aims & objectives might be very different to mine & that will definitely have an influence on whether you get involved or not.
I have last weeks low area at 1.2130/50 & last months low area at 1.2050. I have also plotted out the lower high around 1.2700 from the end of June so I’m more or less in tune with where you’re looking.
Interesting.
Thanks again for your posts, I’ve found them very helpful.
That’s nice pullback action on the AUDUSD & USDCAD today, thanks for yesterday’s summary & heads up with those current charts.
In the absence of a 123 or other such trigger at a pullback entry, I’m guessing the stochastic hook on either the 15 or 60 minute charts would be the tactic to bring into play?
I only recently covered the posts explaining this trigger so haven’t yet had time to fully appraise it in live conditions, but noticed it confirmed the support entry on all 3 of those dips on AUD & the 2 peaks on CAD through the London session this morning before their respective follow through.
In cases such as 2 or 3 pairs all displaying possible entry set ups, I assume the smarter option is to defer to the one exhibiting the greater current average daily range potential, which in this case would be AUDUSD with at least a 1/3rd more range available than USDCAD.
You can bring the hook into play with or without a price action based trigger compact, but you’ll get a better idea of whether it’ll directly benefit you the more you observe it.
Carll mentions in one of the threads that after a while it becomes invisible, & the main reason is that once you begin looking for, & correctly identifying shallow dips & higher low pullback continuations in a confirmed bullish bias & shallow peaks & lower high pullback continuations in a confirmed bearish bias such as those on the aud/usd & usd/cad today, the entries are executed close to the upper & lower tiers of those turns.
When the entry washes out it doesn’t really cost you much, & when it moves into profit you’re usually getting in with plenty of average range to go at. The odds are further increased due to the fact you’re executing with the bias as opposed to betting against it.
Thanks laine.
I agree, I’m going to get a much better idea as I move forward with it & see how consistently it lines up alongside these pullback peaks & troughs. I also appreciate you expanding on the technical reasoning. I do quite like the way it’s being used in this context though, as a pullback filter. Usually you see it portrayed as a standard overbought/oversold indicator.
It didn’t disappoint yesterday on the hourly chart configuration of all three of the pairs catcher highlighted in post #874. It hooked up on all of them during London session pullbacks, even offering a 15 minute 123 trigger on NZDUSD at the same level. The only potential fly in the ointment with those three pairs are their usual ADR projections.
I’m in the process of sorting & filtering my pairs into 2 groups. The higher ADR pairs (mostly the popular majors) will obviously carry more intraday potential, with the lower ADR crosses favouring a slightly longer term outlook, but I can already see the potential benefits of at least using the stochastic hook as a filter when price is pulling back & showing signs of continuing its established bias.
From what they say, each year is different Matt. It really does depend what’s driving & influencing prices & the impact on the generic market.
Generally their spot positions aren’t quite as active or aggressive as other business periods & the focus tends to be directed more closely on specific currencies that are under or over performing, thus offering potentially attractive (shorter term) betting opportunities.
The girls & one or two of the more senior/experienced guys take off towards the end of July for 6 or 7 weeks, but there’s still trading to be done via wider markets (options, stocks, futures & commodity bets).
How are things with you?
Still using the framework/structure to get your bets away?
A couple of the original & a few other former thread regulars hang out & post occasional snippets elsewhere these days Carl89.
It isn’t really dead as such, simply that there’s no need to keep repeating the same thing over & over.
Once you’re into the groove with the structure of identifying the key levels & primary bias & you wrap a couple of repetitive & logical set ups/trigger combinations around that structure, it’s a case of rinse & repeat whenever the appropriate opportunities reveal themselves.
Hey catcher, I read a few post back , one of you guys said that although you mark off supply and demand zones using a line chart. Its not a line , its a zone. So how do you guage that zone and when looking at a level on , lets say a daily chart and price breaks through that line on a lower time frame, what how do you know if its a break of the zone and price will advance or turn back around? This has always confused me! Can you help me out? Im not new to trading but have struggled with the higher and lower time frame and entries on the lower time frame. Anyone that understands my question , could be so kind as to skype me. Dappadap1 is my skype id. Thanks in advacne!
One of the recommendations they make is to use a combination timeframe approach, where the higher timeframe is the primary template from which you annotate the levels & zones of significance (such as prior day/week high & low levels & near-term S&R zones), & the lower timeframe is the secondary template where you trigger your entries & set ups based on the info from the primary chart.
So if you’re obtaining your bias, levels/zones from a daily chart, those S&R zones will be transported & visible all the way down to however low on the timeframe scale you wish to view them from.
They only advise trading in sync with the bias as identified from your higher timeframe template.
The identification process is pretty clear & straightforward.
You look for higher swing highs & higher lows cycling up & lower swing lows & lower highs cycling down on your primary timeframe chart.
Once you’ve identified that process & it’s in motion, you drop down to your secondary timeframe chart & they have offered a couple of logical set ups & trigger options for people to choose, such as legging in via pullbacks long or short (via 1-2-3’s or stochastic hook set ups) in the direction of the dominant bias.
You can bring the prior day & week high/low & the pairs average day & week range into play if you so wish as guides to assist with entry & trade management.
Not really Understanding this statement "You look for higher swing highs & higher lows cycling up & lower swing lows & lower highs cycling down on your primary timeframe chart.
Once you’ve identified that process & it’s in motion, you drop down to your secondary timeframe chart
If Im looking at a daily chart and Im looking at a level of supply or demand, what does higher highs and lows have to do with that time frame? Should I not be looking at the lower time frame for those swings and lows? Kinda confused. can you post and illustrated chart of what you mean?
The first question you need to answer is, what do higher highs, and higher lows generally indicate? And what do lower highs, and lower lows usually mean?
Mark up a few of those on a 4 hour chart, and when those conditions persist you should see some patterns.
Well I know what they mean, uptrend for price making higher highs and down trend for price making lower highs and lower lows. But what is the point your trying to get across? I am looking at a daily chart for a supply level, I see price has reached there, I go down to a lower time frame. 5 minute for example, what am I looking for is my question? Higher highs into the level meands nothing cause price could turn around at shortly after breaking through. I am trying to understand what to look for as an entry for a move in the right direction when price moves to these higher time frame levels , that’s all
If you’re using the the daily timeframe exclusively as your primary observation tool to identify & plot potential supply & demand zones & the 5 minute timeframe as your secondary or trigger frame to execute your trades, then as soon as price enters such a zone on the daily chart you drop down into your 5 minute & begin preparing to trigger an entry.
So if you’d identified the 3120-70 area as a likely candidate for potential supply, being the top/closing zone from the 14th & 17th of September, the next time price revisits that area (on the 17th & 18th October), you would begin preparing to trigger short set ups on the 5 minute chart based on whatever you use to get you into the trade.
Which is where the higher high, higher low & lower high, lower low price action references enter the equation.
If you are also bringing their additional price aid assistors into the mix such as average daily range coverage awareness prior to entry, & prior day & week high-low levels to guage possible short-term sticking points, then that would be the time to take note of those items.
