Brett has asked me if I could explain the 1-2-3 method that myself and Achoo occasionally reference here (including, coincidentally, the post above).
Well, first thing, I should point out that this has nothing to do with the 1-2-3 pattern talked about at times through the threads here. In fact, we should say that this is a 1-2-3 sequence.
1: Did the H1 bar (#1) make a new High on the day?
If yes, then...
2: Did the following H1 bar (#2) try and fail to make a new High?
If yes, then...
3: Enter SHORT as price crosses back down across the Open Level of Bar #2. (Marked with red circle on the chart below).
Opposite for Long entries.
I did not invent this method - in fact the reason I gravitated towards it in the first place was because I had used something along the same lines on the very high time-frames I used to trade and knew it worked. This particular variant comes via TooSlow over in ''The Other Place'' via our very own Stainless Steel Rat, TRO.
Myself and HAL over there, the two main contributers to the thread, take 90 - 95% off at the +5 mark and let the rest run - plus I will not hestitate to re-enter should price flip and flip again. I will also counter trade on any move that goes negative to keep any bad trade in limbo and to add some extra swag to the bank to give me a head start on my target figure.
The method is deceptively simple and is rock-solid. It repeats and repeats ad infinitum and rewards fine tuning with the ability to relentlessly bank pips.
It will run on any FX pair (though HAL and TS have their favourites and UC is particularly suited to it, due to its tendency to ''top-and-tail'' the day).
I also run it on a stable of indices, my ''Weird Bunch'' - DAX, F40, S&P, US30 and FTSE - and it rocks big time with those.
Here's that chart to give a visual component to the above chunk o' info...
Also, yes, the previous high was also a valid set-up and would have bagged the +5 but I ignored that for clarity here. Plus, there's nothing about only taking one bite of a 1-2-3 cherry. In fact, you will often get one or two small moves before a larger, solid kicker.
Anyway, there ya' go.
Any questions, feel free to ask as always.