1-2-3-4 Forex Reversal Trading Strategy

uninnova · (#1 (**permalink**))

A 1-2-3-4 reversal chart pattern is build up of 4 definable points, known as point 1, 2 , 3 and 4. A typical 1-2-3-4 chart pattern is best traded after a strong currency pair up - or downtrend and can be defined by an easy set of trading rules. A trader can confirm the reversal trade using a technical indicator such as DMI or MACD.

1-2-3-4 Basic Rules for Short Trades

Point (1): The high in an up trending currency market.
Point (2): A downward correction in the up trend, the lowest bar in the correction before the price moves back up to point (3).
Point (3): The high in the move up from Point (2) but a failure to make a new higher high(Point 1).
Point (4): Go short 1 pip below point (2) ...

( continue with charts on
forex-market.ucoz.com/publ/5-1-0-32 )

Jaack · (#2 (**permalink**))

How is this different than Fibonacci?

rpaco · (#3 (**permalink**))

Quote:

Originally Posted by Jaack

How is this different than Fibonacci?

Did he mention Fibonacci? No he described the break in the trend, the 123 method and added a 4.
After the reversal you may like to use the fib to guess how far down it will fall.

Jaack · (#4 (**permalink**))

Did I write he said Fibonacci? Nope.

I am trying to learn and that was my question.