1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

1-2-3-4 Forex Reversal Trading Strategy

Discussion in 'Beginners Bootcamp' started by uninnova, May 12, 2009.

  1. uninnova

    uninnova Recruit

    Joined:
    Mar 6, 2009
    Messages:
    2
    Likes Received:
    0
    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 )
     
  2. Jaack

    Jaack Private

    Joined:
    May 4, 2009
    Messages:
    14
    Likes Received:
    0
    How is this different than Fibonacci?
     
  3. rpaco

    rpaco Sergeant

    Joined:
    Oct 3, 2007
    Messages:
    184
    Likes Received:
    0
    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.
     
  4. Jaack

    Jaack Private

    Joined:
    May 4, 2009
    Messages:
    14
    Likes Received:
    0
    Did I write he said Fibonacci? Nope.

    I am trying to learn and that was my question.
     

Share This Page