Thread: Whats wrong with 123 Pattern

Originally Posted by ;

It is not a bad egy. It is certainly incorrect. But, it's more of an intro than a professional system. It teaches you how you can consider, but not necessarily commerce.

Ideas such as support and resistance are all, in my mind, an evolution of the 1-2-3 method. When you examine your charts for SR rather than 1-2-3, I see a lot more successes where 1-2-3 has failed.

1-2-3 works in trending markets. . .SR works in trending and ranging...

Entirely agree with you partner.

I remember investing in the 1-2-3 pattern when I first started out in FX. I tested it for a few weeks on demonion, and got mixed results, so I just left it. On it's own it's nothing special, it's more of a help, if you opt to use it.

Originally Posted by ;

Anyway, here's a pic of us flying through town on our choppers. The locals were all in tears as they pointed and quivered in abject terror...I figure we must have had them scared out of the minds.

Dang, terrifying! Born to be wild.

Originally Posted by ;

But I don't think it's too discretionary, the measures are now laid out. A 1 is shaped, a 2 follows, U commerce if and only if a 3 is shaped. If a 3 is shaped, execute, otherwise, abort.

Right, but who is to say which is the 1st, which is the 2nd which is the 3rd. In case you have a string of peaks and troughs, which is which? Where does the pattern stop and start? I have the same concern w/ elliot waves also, how can you know which wave is which until it is all said and done? But what works for you, works for you. I will just say why I, personally, don't use patterns like this... that is all. I favor micro patterns or bar sets.

Because Individuals today have a Difficulty

1 Attachment(s) nothing wrong with it
I use it Stocks, FX and any chat in the world

and my notes are
it's best about the daily and with no gaps, it is going to generate little losses
but using intraday the amount of false signs increase since the noise

The only issue is: it's a reversal pattern and that is mean you constantly wait for the current trend to undo and ch the new fad from the beginning and after two or three false attempts and you start to shed your confident inside while the current trend continue

so you cant use it alone, you MUST mix it with continuation pattern like Ross Hook to fulfill the gap of waiting that the reversal and go too with the current trend (search the forum about it, we have many discussion about this topic or see Joe Ross books)

that the RH in uptrend is a pub that high compared to prior and the following pub

you must love the continuation patterns over the change to be with the trend and don't let your transactions consistently top/bottom choosing

since I stated nothing wrong and I used it everyday in several markets with great success but the difficulty from the people is that they don't easy systems, they love the complied multi-indior systems

That is the point

but you want to practice it a bit more, the 123 pattern are two 123 large and 123 non
123 high should have previous uptrend into REVERSE it and vice versa to your 123 Low

attempt to rely on it bar by bar and place signals on the chart and dont use the zig zig indior to save from congestion
when your count ends using four closes on the range of the fifth pub then take break cuz you are in congestion and watch only the breakout from this congestion
and only use stop orders



you can found many examples and discussion by searching the forum
ex articles: post1, post2, post3, post4

I attached your chart with a few clarifiion
https://www.forexsoutheast.asia/cryp...ze-indior.html

Originally Posted by ;

nothing wrong with this
I use it Stocks, Currency Market and any chat in the world

and my notes are
it is best about the daily and without gaps, it is going to generate little losses
but using intraday the amount of false signs increase because the noise

The one problem is: it is a reversal pattern and that's mean you constantly await the current tendency to reverse and grab the new fad from the start and after two or three false attempts and you start to shed your confident inside while the current trend continue

so that you cant use it independently, you MUST combine it with continuation pattern like Ross Hook to fulfill the difference of waiting the reversal and go too with the current trend (search the forum about it, we've got many discussion about this topic or see Joe Ross books)

the RH in uptrend is a bar that high compared to prior and the next bar

you have to adore the continuation patterns more than the change to be together with the trend and don't let your transactions consistently top/bottom picking

as I said nothing wrong and that I used it everyday in several markets with great success but the problem in the people is they don't simple systems, they adore the complex multi-indior systems

That really is the point

but you need to practice it a bit more, the 123 pattern are two 123 high and 123 low
123 high should have prior uptrend to REVERSE it and vice versa for your 123 Low

try to rely on it bar by bar and put signals on the chart and dont use the zig zig indior to save from congestion
as soon as your count ends using four sticks on the range of the fifth bar then take break cuz you are in congestion and watch just the breakout from this congestion
and just use stop orders



you can found many examples and discussion by looking for the forum
ex articles: post1, post2, post3, post4

I attached your chart with some caution

Thanks a lot Benssol,

Here is the kind of objective analysis I was actually looking forward to.
Coming from a seasoned trader who has actually tried the system , seen the pitfalls and made alterations to find a winning advantage.

Like U rightly said, people would rather accept complex systems with packages of custom indiors and ignore the very simple price patterns that appear to stare at them in the face everyday.

Smaller time frames can really provide many false signals resulting in series of losses; I feel that's why folks appear to have negative comments about it.

In years pastI've considered it about the daillies, but on account of the large stoploss it may demand I had to fall lower.

I have read Joe Ross' novel but I just ignored its message for obvious reasons. Well I will go and take another look and consider your other suggestions and see if I will develop a border too.

More useful gifts or links/materials on this will be highly appreciated

One need to Learn what works for him and work on it

Evaluation
https://www.forexsoutheast.asia/atta...2474731157.txt

The 1-2-3 method is a legitimate idea. No method works all the time and some folks cannot work any way anytime.
Abide from the fundamental rules and it will work.

Originally Posted by ;

nothing wrong with this
I use it Stocks, FX and any chat on the planet

and my notes are
it's best about the daily and with no gaps, it is going to generate little no of losses
but using intraday the amount of false signs increase since the sound

The one problem is: it's a reversal pattern and that's mean you constantly wait for the current trend to undo and grab the new trend from the beginning and after two or three false attempts and you begin to shed your confident in it while the current trend continue

so you cant use it alone, you MUST unite...

Nice article Benssol, I am a little late to the party but will go again and loosen the remainder of your chart observation thread, a few very useful stuff on the market. Thank you.

123 is a great pattern to look for but be certain you're trading it, like anything else in an active market! I only trade the very first few hours of the asian market (when its moving nicely) and London to the first hour of new york. New York gets choppy after about an hour.

Originally Posted by ;

Hello Everybody, I truly did not want to start a thread, but as it goes, if you don't ask questions, you dont receive answers. And I would not want to leap into someone else's thread having an off-topic this new thread? It's a question about the favorite 123 pattern/system. What's wrong with the machine? It's talked about in just about any introductory trading conversation and it's everywhere on the internet , but I barely hear people speak about trading the machine; particularly here at FF. Is it that it isn't a profitable system? Or it's just...

The 123/1234-Pattern is a fantastic indior to recognize a change-of-direction ... The issue is that we can't play all of the present patterns as a lot of times it might just be a correction within a bigger 123/1234-Pattern ...
One approach to solve this problem is by playing with 2nd-chances ...