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There are many ways to deal with 123 patterns.

1. Aggressive entries [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

In the example below we can see an ideal ’3′ point set up in a 123 type formation.

When we look for the ’3′ of a 123 pattern to form, the safest entry is on a candle pattern off  [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

Chikou Span (also known as the “lagging span”) is simply the price plot stepped back by a certain number of periods behind the latest closing price. Therefore 26 days, 26 x 4H, 26 x 5m, etc. depending on which time frame you are using. You can actually achieve the same result by plotting a 1 period simple moving average on the chart and ‘shifting’ it back minus 26 (-26). The number of periods used to lag the Chikou span is customizable on most  platforms and some use a slightly different number by default.

Chikou therefore ‘plots’ the exact closing price 26 periods back, and it is [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

We can effectively use the combination of candle patterns and Ichimoku to give us superior advantage and alert us to an upcoming move.

Below is a chart showing an alert  mentioned 2/6 on the UsdCad where members could use the combination of candle pattern and Ichimoku to warn of pending danger and for a low risk idea. The chart is fairly explanatory but lets run through the scenario.

Chikou Zone overhead (red lines) for possible test by the bulls, who may try to attempt a breakout. (First line has been touched several times).

Bulls try to push the action over the line but it will not hold – bears are too strong and a [The forex alerts and charts are protected for Trader Membership members and above. Join us to see all content]

We can use the combination of candle patterns and Ichimoku to give us superior advantage.

Below is a chart showing an alert mentioned 14/5 on the AudCad where members could use the combination of candle pattern and Ichimoku for a low risk entry with a maximum of 160 available from 5 confirming signals. More follows

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A member asked for more clarification regarding the value and use of Chikou in confirming Tenkan Sen/Kijun Sen crossovers. Here’s a chart that should speak a thousand words. If there is anything you so not understand please ask.

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There are many different ways to use a stop loss and I have illustrated a number below:
MT4 and a number of other brokers have the facility for trailing stops, and its really at members discretion taking into consideration their risk profile as to what figure to use.

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This week I will start  posting some short term trade ideas as and when they become available. I will initially be watching about 6 pairs but will only post when I see reasonable potential. The charts will be very simplistic although they contain everything required without the need for much in the way of text. See the legend for line colours and meanings. There may be multiple green lines shown as potential targets points for consideration, but they are likely to diminish in short term probability the further away they are.

Mini 123 (on a small time-frame)

I noticed one of our members mentioned using the 123 pattern I gave in previous education to get into the GbpUsd trade on Friday, so here are my thoughts on that entry and hopefully everyone can learn something from it and the other signals showing at the same time.

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