I'm hoping to set the ball rolling for a discussion of trading with 123 formations, after there's been some interest expressed in this method recently in other forums. These 123 formations can be traded on virtually any instrument and any time-scale. Personally I use these setups to trade the highly volatile Nasdaq stocks by using daily charts. You can always yahoo for "123 trading overview" to look for more information about the 123 formations. I use a derivation of 123 system. Only I trade these setups for trend continuation instead of trend reversal as suggested by the original idea. Let's hope we can get some interesting discussion going and find some good trades here.