1-2-3 Forex & Stock Trading Strategy (Boost Your Profits $500 per Day)

The “1-2-3 Trading Strategy” is a powerful method that can elevate your trading skills to new heights. It relies on the MACD indicator along with a straightforward price action pattern to guide your trading decisions.

By incorporating these tools, you can enhance your ability to identify potential trading opportunities and make more informed choices in the market.

This strategy offers a systematic approach that simplifies the complexities of trading, making it accessible and effective for traders of all levels of experience. Once you’ve trained your eyes, you’ll start spotting signals everywhere. Whether it’s the start of a fresh trend, the conclusion of a retracement, or even within a trading range, these signals can be found.

They’re also visible within both rising and falling trends. By developing your ability to recognize these patterns, you’ll gain a deeper understanding of market movements and be better equipped to make informed trading decisions.

This skill allows you to capitalize on opportunities across various market conditions, ultimately enhancing your overall trading success.

• Download “TraderVersity-123Systeme” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “TraderVersity-123System.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “TraderVersity-123System” trading system and strategy.
• You will see the “TraderVersity-123System” is available on your Chart.

This scalping trading strategy is based on price action and simple market structure that any trader should know. The strategy is mostly used as a continuation trading setup that is designed to take advantage of the trend of the market, using a simple 1-2-3 pattern and MACD histogram.

And even though it is a continuation pattern upon confirmation, it can also be used as a reversal pattern from the short term trend direction.

In the 1 2 3 pattern, we begin by identifying point 1, followed by the upward movement to point 2. Subsequently, there’s a retracement that forms a higher low, marking point 3. The pattern is complete when the price surpasses the recent high of leg 2.

At this stage, we prepare for a breakout trade, but it’s crucial to seek confirmation. Blindly following signals without considering the broader context can lead to significant losses. This confirmation is provided by the MACD histogram.

For a long setup like this, while forming point 3, the MACD histogram must remain positive, staying above the zero level. This indicates that although the momentum may be weakening slightly, it remains positive overall. When the price breaks point 2, it signals a strong entry point. During the correction phase when point 3 was formed, the bullish momentum persisted, providing confidence in entering the trade. This combination of price action and MACD analysis helps us make more informed and strategic trading decisions, reducing the risk of losses and maximizing potential profits.

• Stop Loss
  You should always secure your open trades with a stop loss order. Although the success rate of these patterns is relatively high, there is never a guarantee that the trade will work in your favor. Your stop loss is below the point 3.

To effectively filter short signals using the 1 2 3 pattern and MACD histogram, follow these steps:

Firstly, identify a downtrend. Point 1 marks the peak where the price encounters resistance before declining. Point 2 emerges as a lower low, establishing a support level.

Subsequently, point 3 takes shape as the price attempts to rebound but faces resistance again. It’s crucial to note that point 3 must be lower than point 1 to validate the pattern for a short setup.

During the formation of point 3, monitor the MACD histogram closely. For a successful short setup, point 3 must coincide with a negative MACD histogram, staying below the zero level.

Even if the MACD histogram shows an increase in negativity during the formation of point 3, it’s essential that it remains below the zero line. This signifies sustained negative momentum in the market.

As the price breaks below point 2, indicating a continuation of the downtrend, it’s an opportune moment to enter the trade. This breakout confirms the downward momentum, aligning with our trading strategy.

By incorporating these steps into your trading approach, you can effectively identify and filter short signals, enhancing your ability to capitalize on downward market movements while minimizing the risk of false signals.

• Stop Loss
  You should always secure your open trades with a stop loss order. Although the success rate of these patterns is relatively high, there is never a guarantee that the trade will work in your favor. Your stop loss is above the point 3 (swing high).

This “1 2 3 MACD Trading Strategy” is an extremely low risk, high reward strategy which can and will change your life if you use it properly. The only thing that could make this system fail over the long term is you not sticking to the rules. that’s it!

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