Could the 1-2-3 Pattern be the Holy Grail?

[Stonecold69]

I don't have anything in particular in mind, but I love my stochastic oscillators. Do you think there's anyway to add a stochastic into the 1-2-3 analysis to improve the probability of a good entry?

Hi UncleBuck,

Let me know what you want - also what parameters you'd like to be user-changeable....do you want a histogram or lines?

If you're not sure then I'll have a think since I am interested in Stochs so will bash my brains to think of a way to incorporate it after looking back through some 1-2-3 patterns over the last month


Stonecold

[UncleBuck]

Hi UncleBuck,

Let me know what you want - also what parameters you'd like to be user-changeable....do you want a histogram or lines?

If you're not sure then I'll have a think since I am interested in Stochs so will bash my brains to think of a way to incorporate it after looking back through some 1-2-3 patterns over the last month

Stonecold

I've adapted one of the FXFatcat Templates for me. I like to have a lot of stochastic levels on my chart, as different people will be looking at different levels, so whose to say that when I'm looking at oversold on my fast oscillator, someone else is looking at a slow oscillator and their's is just coming out of overbought!

So I liked the idea of having lots of stochastics on one chart; and when all the stochastic levels gather below or above the 85 level, it's usually quite a reliable indication that price will soon reverse on the particular time frame which you're looking at.

I try to find the perfect storm, where all / most of the stochastics are oversold or overbought on multiple time frames. These are the creme de la creme of trades, but require a bit of patience in finding them.

I don't know if it's possible for you to program an ea which will take a trade based on 20 Stochastic oscillators being oversold or overbought, and furthermore, whether it's possible for the EA to look at other time frames as well, where there is an option where the EA will only take a trade when all the stochastic oscillators are oversold/bought on more than one time frame.

The chart below is what I currently use. Have a look below.

[UncleBuck]

Attached is a 4 hour example. As you can see, it looks oversold on the 4 hourly as well. So it's even more tempting to take a long. It's also a great indicator to get out of current trades which you're in. I'm in a short at the moment, so I will close the short.

[Stonecold69]

Hi UncleBuck!

I have the software to create an ea and yes you can involve multiple timeframes in the decision stages of it's coding or more accurately the tech analysis stages!
I am willing to go for it and make something for you but we'll need to communicate every now and then till it's running the way you like which is hopefully profitable as then it will benefit me as well lol (plus other members if you're happy to share!)

The Other thing is I can combine different timeframes' stochastics into a single indicator and you don't NEED to have loads of lines, it can be reduced to a few OR I can simply make it so horizontal or vertical bars fill the indicator window in one of several colors like a 'temperature scale' where bright green (Lime) would be BUY BUY BUY and RED is SELL SELL SELL and the middle would be Gray or Orange for example....
I haven't done many EAs so it will be interesting for sure

Let me know more details via pm in order to save 'cluttering' this thread unless you think it will help the 1-2-3 trading (I'm happy to help you but don't want to go off topic in the actual thread - I hope you understand ol' bean )

Stonecold (back online in a few hours )

[Stonecold69]

Hi Guys 'n' Gals,

So, I have been thinking on this trend question and it comes to mind that there are aactually a few questions which are trend-related....

1.Do I take 1-2-3 trades only with the trend or only against the trend or both?
2.When I take the trade, do I need the trend of a higher OR lower trend to be confirming my trade.....

To break this down further, take an example where you wish to take a 1-2-3 Double Top Reversal 1-2-3 (a.k.a. a possible Kevin Haggerty 1-2-3) and at the time of the trade, the Higher timeframes are more than likely still showing a Bullish Trend while the lower timeframes would more than likely be showing a Bearish trend with M1 POSSIBLY being the most in agreement and the subsequent higher timeframes up to the one we are trading in would gradually be less in sync with our counter-trend trade...

This makes me think that an indicator showing say the trend based off an MA's direction for other timeframes would be useful - possibly something along the lines of an indicator which shows the trend of two higher and two lower timeframes - of the user's choice.

I shall be looking at various indicator set-ups and writing some code over the weekend so if anyone has any ideas however silly they may seem or however great lol please post your thoughts and I'll look into those parameters!

Right - I'm back to doing some coding - Happy Trading people!!


Stonecold

[Stonecold69]

Sorry for super-quick post but health has been bad and I am only checking in!

I have noticed a few things in the few trading days I have had in the past week and that is with the entry line on the 1-2-3's - I am considering looking at how Tom DeMark trend lines for the retracement might give us an earlier entrance - now before anyone who may have SnapbackFX thinks I am talking about that then no - I am not.... I am looking at a way to breakdown the sub-trend which is the retracement from pivot (1) to (2) and subsequerntly gives us our entry when (3) passes (2) normally but this would be a way to consider the retracement as being 'over' and therefore we could get in much quicker than at pivot (2) but we need to have a model to build the rule off. I will gather some screenshots over the coming days.....

Sorry for the rambling, I am genuinely trying to use this thread as a voyage of 'discovery' and through sharing, I am hoping that little gems of info may be shared amongst us fxfatcat members 8-)

Bye for now,

Stonecold

[Stonecold69]

Hi Everyone,

Well, it's been a while but I have been struggling with health issues and although not here, I HAVE been putting in a lot of thought to my trading and how we can crack this thing!!
Although I have found myself straying from the 1-2-3 pattern and for the most part, regretting it, so I thought I'd come back and voice some of my thoughts...
I found myself falling for some of the systems out there and they were pretty disappointing to be honest and I think I should just stick to what I started out with '1-2-3' trades but I am now looking at more areas that will benefit 1-2-3 trading and from this, I have found myself looking at Chaos theory via Bill Williams and also Elliott Wave theory - not to become a 100% Elliott Wave Trader (although who knows, right??) but to perfect my 1-2-3 // ABC // AB=CD type trading as it really is the most common 'pattern' out there really whether the market is trending or range-bound which then makes me think of one of the areas I was targetting in my list...that of Trend direction and detection using 'other' timeframes! If 1-2-3's are A-Trending i.e. occur in any and all directions, then how important is the trend....I mean, if we can come up with ways for detecting which type of 1-2-3 we are looking at then we have already answered the question of 'what trend is THIS 1-2-3' trading in as, for example if we are trading a Kevin Haggerty trade this is a reversal of the main trend direction and so we know it will be going the direct opposite of the existing trend direction whether that is a good or bad trend - the only question that may still be asked is does Trend STRENGTH come into the equation when looking at a 1-2-3 trade?

Anyway, I see noone is posting here at the moment so it is more of a mental tool for me to 'air' my thoughts lol!

If any of you have any ideas then please shout out and let me(us) know

I gotta go,

Stonecold Out!

[Stonecold69]

Hi Everyone,
Sorry it's been so long but I was just going throgh the charts and came across this and thought 'That's a great KH setup and 'Bu*&er' I wish I was on that

Here it is:



N.B. The [1] should be over to the right a little so it is directly on the down trend-line which breaks the up trend!

Hope to be back soon as I have neglected the thread due to life's challenges but I am still looking for the grail and yet again 'other' things have distracted me and I keep seeing examples that I should have been going for so I am planning to come back and get active again!

Stonecold

[LindaL]

Stonecold, very interesting thread. Sorry to be ignorant, but what exactly is a standard 123 and what is The Kevin Haggerty Method. I'm not famliar with either

You have to make a little research, as it is not easy for understanding.

[Stonecold69]

Hi Linda,

I'm not sure if the 'comment' after the quote is meant for me but this thread is meant as my personal journey looking for the 'Holy Grail' and it seem(s)(ed) that the 123 may be as close as one can get - by creating the thread, I was inviting anyone who was interested to join in with the discussion and/or research!!
If you actually start at Post #1 and read the posts, 1.You will indeed see what a 1-2-3 Pattern is and 2.You will also see what the Kevin Haggerty version is!
I don't want to be grumpy or negative but my health is very poor and I am not really able to do much at this time so I really don't want to repeat information which is already here in earlier posts....
If you came to this thread to actually walk away with a massive money making system then go now as that is not what this is about but if you want to learn about a pattern which occurs every day on almost every pair (if not all) that does offer profit opportunities to those that learn how to use it, then go to the first post and read everything - THAT is the way to get the most from this
I am getting better and do plan to return to this thread soon and will continue the concept.


Stonecold69