Forex Profit With System 123
Technique 123 calculates the wave of price movements to predict the possible direction of the next movement, and is generally used to look for the possibility of a trend reversal.
This system takes the long-established 123 technique in financial markets. Technique 123 is a technique that calculates the wave of price movements to predict the likelihood of the next direction of movement. And this technique is used to look for possible trend reversal .
Maybe what will be your question is how to determine points 1, 2, and 3. When the price movement is trending then the price undergoes a deep correction, the starting point of the correction we make point 1. While the end of the correction level is the level at which prices are consolidating is the 2nd point. While point 3 we select a price movement condition that meets the Fibonacci 61.8% retracement criterion from point 1 and 2 or more but does not pass through point 1.
We take the example of a 15-minute movement of GBP / USD on December 13, 2010. At 3:20 p.m. the price is at the level of 1.5793 then the price gradually decreases until the correction starts at the level of 1.5718 at 17.15 WIB. This level we make the point 1.
After we get the 123 point, we wait for the price to break above point 2 to be used as a buy entry level (in the range of 1.5767 level – entry point) with the stop loss level a few pips below the point 3 (in the range of 1.5716 – SL1) or below the point 1 and the amount of the profit target is equated with the distance between points 2 and 3 and is obtained at the level of 1.5814 – TP1. We can apply risk management by opening 2 lots. The first lot we spend when TP1 is reached. Then SL1 we up to SL2, so for this 2nd lot we are risk free. Then we remove the second lot in TP2. This system is very suitable in trading sessions with large volatility, ranging from European and American trading sessions.