I don't think Timepass would mind me marking up his chart to show my point.
A 1-2-3 is the first chart pattern I learned, and the only pattern I actually incorporated into my methodology, because it is so powerful. I learned it from a very respected trader in another forum.
First, and with all due respect to Timepass, his chart shows what a 1-2-3 is not. I will post a bearish 1-2-3 next. The reason his is not bearish 1-2-3 is that the 3 went higher than the 1.
I doubt this will happen, but if the market reverses from the exact current point, you have a bullish 1-2-3 formed. Your entry would be just on the other side of the swing high.
A 1-2-3 is actually ideal at the beginning of a trend, but regardless, wherever they form, a very strong move ensues.
Another thing you want to look for in a 1-2-3 is symmetry. The better the symmetry, the more predictable and stronger the move. 1-2-3's work without symmetry, but still, symmetry makes for an ideal setup.
Symmetry: What we look for is <> the same amount of candles from the 1>2 as the 2>3. The other thing is if you take your Fibo and measure the 2>3, ideally, you want a 78.6 correction to it. This is ideal symmetry, and it is rare that you will get it, so you look for a less than ideal situation for a still ideal trade.
The ideal symmetry also produces a very rare gartley. I have trader/friends that gartleys are the only thing they trade. They don't get many trades, but when they do, it is amazing the quality of trades they get.
Next is a bearish 1-2-3.
Can u pl brief rules of 123 patterns?
