Price won't always retrace to the 50% fib if the trend is very strong. However, a 123 pattern was formed on the weekly chart with the uptrend, and the macds on the monthly, weekly, and daily charts are in buy mode. That's good enough for me.

123 Method by lgtj

Hello davibaby and welcome. If price has fallen below the 50% fib in an uptrend on the weekly chart, then that means that price is retracing or there could be a possible trend change. This is where the macd plays an important roll. In this case, I ...

123 Method by lgtj

Welcome pgpb and thanks for following along.

123 Method by lgtj

Welcome porfirio and thanks for your comment.

123 Method by lgtj

Welcome marshy and thank you for your contribution and comment.

123 Method by lgtj

Welcome calderone and thank you for your comment.

123 Method by lgtj

Live example — Look at these charts of gbpusd. First, the monthly chart macd is in buy mode. Second, the weekly chart macd is in buy mode and formed a 123 pattern. Third, price retraced, and the macd went into sell mode on the daily chart. ...

123 Method by lgtj

Live example — Look at these charts of eurusd. First, the monthly chart macd is in sell mode but shows bullish divergence. Second, the weekly chart macd is in buy mode and formed a 123 pattern. Third, price retraced, and the macd went into ...

123 Method by lgtj

Hello pipfirst and welcome. Yes, it is as profitable if you focus on the 4H and daily time frames only. Just make sure that the weekly macd and price action is in agreement.

123 Method by lgtj

Ok, that's pretty much the way I trade the 123 pattern. If you have any questions or comments, please feel free to post. I have to go now. God bless you all.

123 Method by lgtj

Entries con't — Let's talk about entries on the 4H time frame. For the 4H entries, I would plot my fib tool on points 1 and 2 on the daily time frame as long as it's with the weekly trend. As long as the macd's are in agreement, then I would ...

123 Method by lgtj

Hello Bill and thanks for your question. If price goes below the 50% fib level, I wouldn't consider the trade to be off unless price continues to fall and break major support levels and round numbers under the 50% fib level.

123 Method by lgtj

Exits — Let's talk about exits. According to the e-books, whatever the calculated distance is between points 2 and 3, that figure should be the same amount for our target. For example, if the distance between 2 and 3 is 300 pips, then our ...

123 Method by lgtj

Entries and stops — Lets talk about entries and stops. There are three entries that I use. First, the early entry. Second, the conservative entry. Third, the add-on entry. These entries will be taken on the 4H and daily time frames. Let's look ...

123 Method by lgtj

Welcome and thanks for your comment.

123 Method by lgtj

Welcome guernica and thanks for your your contribution.

123 Method by lgtj

Rule 3 — Once the retracement has occurred and has gone into sell mode, now we must wait for the macd to get back into buy mode before we make an entry. Again, patience is needed. image I must go again. I'll be back to cover entries and ...

123 Method by lgtj

Rule 2 — Now we must locate the 123 pattern on the weekly time frame after the buy or sell mode has been established. Then I plot my fib from point 1 to point 2 on the weekly chart and monitor the retracement to the 50% fib level on the daily ...

123 Method by lgtj

Rule 1 — Ok, I'm back. First, we must establish whether the macd is in buy or sell mode. I like to start with the Monthly chart first and then the weekly and daily. I'll use audusd for my examples. Buy and sell modes. image Buy mode image ...

123 Method by lgtj

Your chart should look like this. image Here's a live chart of eurusd image I'll explain the rules in upcoming posts. I have to go for now.

123 Method by lgtj