The simple 123 method. Only I trade these setups for trend continuation instead of trend reversal as suggested by the original idea.
The whole idea of X-1-2-3 (X-1 prevailing trend) is to take the reversal trade when 2 is broken. How do you trade the continuation of the X-1?
Nothing complicated....In my 2 cents, the best way to determine an uptrend is to trade with stocks making new 52-week highs.
Trend: X1-X2-1-2 (X1-2 prevailing trend) forms a classic uptrend pattern by having a higher high and higher low and also looking for point #2 making a new 52-week high. Setup: 123 Formation Trigger: Breakout from point #2
Watchlist for Jun 30, 2005 Potential 123 trades: ASFI, CKCM, DGIN, ILMN, ITRI, KAMNA, LIFC, LUFK, OTIV, PGIC, SPIR, STLW, THOR, UHCO, WLSN Updates: ENTU - Close <= $5, scratch from the watchlist. SMTS - A lower High is formed. Trade abandoned. SPNC - Broke Point #2 ( 6.41 ). Recommended Initial Stop at 5.77 UPCS - Broke Point #2 ( 8.18 ). Recommended Initial Stop at 7.58
Watchlist for Jul 01, 2005 Potential 123 trades: ASFI, CAND, ITRI, LUFK, OTIV, PGIC, THOR Updates: CKCM, DGIN, ILMN, LIFC, SPIR, STLW, UHCO, WLSN - Scratch from the watchlist. A lower High is formed. KAMNA - Broke Point #2 ( 18.13 ). Recommended Initial Stop at 16.50 LUFK - Broke Point #2 ( 36.20 ). Recommended Initial Stop at 33.90
If you dont mind provide a description of 123 that you play. There's tons of different steups called 123.
G'day Persama. Nice to see you out here. Haven't followed your posts on ASF but will read it when I get a chance. I didn't have time to look at everything but out of your first three, only ITRI looks to be a goer. Actually, it looks very good. ASFI and CAND both look set to fall. Just my two bobs worth.
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.