How to use powerful 1-2-3 Trend Reveral Pattern – Day Trading Forex
Using the Above Chart as a Scenario of Illustrations
Scene (1) to (4) :- Down Trend and followed by a UpTrend Reveral at Scene (4)
Scene (5) :- Up Trend and followed by a immediate DownTrend Reveral
Scene (6) :- DownTrend - The 1-2-3 Line break at the First “123 Pattern”.
Scene (7) :- DownTrend - The 1-2-3 Line fail to break.
Exit Strategy :- Exit Point for Both Uptrend Reversal and downTrend Reversal
Exit Strategy :- Exit Point for Both Uptrend Reversal and downTrend Reversal
Conclusion :-
Scene (1) – DownTrend - The 1-2-3 Line does not break.
Scene (2) – DownTrend - The 1-2-3 Line againg does not break.
Scene (3) – DownTrend - The 1-2-3 Line again does not break.
Scene (4) – DownTrend - The 1-2-3 Line Finally Break through and form a Trend Reversal
Scene (5) – UpTrend - The 1-2-3 Line break at the First “123 Pattern”.
Scene (6) – DownTrend - The 1-2-3 Line break at the First “123 Pattern”.
Scene (7) – DownTrend - The 1-2-3 Line fail to break.
Exit Strategy
The Above 7 scenario show very powerful Entry Strategy using the Simple 123 Reversal Pattern.
However Exit Strategy is equally Important
There are 2 conditions to be Fulfilled for both Uptrend Reversal & DownTrend Reversal, before we even want to EXIT
(A)
(B)
Conclusion
This Strategy is very powerful to use again and again repetitive only when there is a UP or DOWN TREND.
On a Range Channel Trend, do not use this Strategy
