As the title says, there are many price action strategies, but what’s your favourite? Mine is the 1-2-3 strategy.
The reason why it is my favourite is because it is powerful, almost always accurate and is very easy to identify its pattern, and also because the occurrences are quite common, unlike other price action strategies like the double top/bottom and the head and shoulders.
I`ve heared about that strategy and even added to the “Bookmarks” an interesting article about it, but left it for the future.
As for me, the double top/bottom and head and shoulders pattern are very rare on the markets nowadays. It is also quite difficult to identify them and find entry point with the relatively small stop.
At the same time, if to speak about the patterns that work fine I will mention breaching of trendline, triangles and peanuts.
In fact, almost all patterns consist of trendlines (either horizontal or diagonal). That is why is is better to start with the most simple strategy - the breaching of trendline drawn through at least two highs or two lows.
I have never seen this ‘strategy’ before. But can tell you just from that chart that it won’t work. If you’re making consistent returns from this I’ll be very surprised. Personally I wouldn’t recommend it, it’s too subjective.
I would use buying breakouts if you want to start somewhere.
That chart is just a generalization. Here is a more clear example:
And here is another chart combined with standard Bbands
So far from historic data, I’ve seen that all but one occurrence have been accurate.
You are not seeing double tops and bottoms and Heads and shoulders because you are not looking for them. They are everywhere and with the highest accuracy when they is little News effect on the pair though. Fundamentals will always destroy technical when they occur.
Got this image from the Feds some time ago… 
