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Тrading strategy 1,2,3

This formation is trend confirming

To see that you have a 1-2-3 formation in the price chart, you must have the following condition:
– Clearly distinguishable peaks and bottoms – no tops of one two bars, a well-shaped tops and bottoms. know how to reduce the graph to see this.
– 1 point from the image always ends with point of a corrective move – see first how the two points I have given the image in a different trend
– Point 2 is the end of the trend movement (movement swings) and then starts again correction
– Point 3 is the end of the correction of swings movement that results from point 1 to point 2

How to trade this formation?

strategy123-insyde

In an uptrend:

Waiting for a price to make a bottom, which is higher than the previous (point 1).
Monitor for new swing in the direction of the trend (point 2).
Correction of the movement from point 1 to point 2 – this is pull beck to item 3
Then now is our turn, wait for the price to break the level of point 2 (top), which is our signal to open the order.
Stop -put it a few pips under point 3.

In a downtrend:

Wait for the price to make the peak, which is lower than the previous one (point 1).
Monitor for new swing in the direction of the trend (point 2).
Correction of the movement from point 1 to point 2 – this is pull beck to item 3
Then now is our turn, wait for the price to break the level of point 2 (bottom), which is our signal to open the order.
Stop – put it a few pips above point 3.


 Trader Milko Zashev


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