Introduction to 1-2-3 Trading Method
1-2-3 trading signals can usually be seen in the beginning and in the end of a trend. You enter the trade after the 1-2-3 signal has been given.
Basically the signal consists of different day's high and low prices.
The most simple explanation on how you could draw
this signal on paper yourself is the following
– from the top-left corner draw a diagonal to the center of the page (1),
now from that (1) draw a diagonal line towards top-right corner,
only end it in the middle of the diagonal (2) and from point (2) draw a diagonal
towards bottom-right corner, only end it before you reach the low of point 1 (3).
Draw a horizontal line from point 2 and once the same price has been achieved on the chart, wait until it goes just a bit lower and then BUY.
Sell signal is exactly the opposite.
The more bars you can see between the signal points,
the bigger move you can expect.
|
