53# Moving Average Channel with 1-2-3 pattern
1-2-3 pattern filtered by moving average momentum and trend strength
Price Action Trading
Submit by Timmy
Moving Average Channel with 1-2-3 pattern is a price action strategy based on 1-2-3 pattern filtered by momentum and moving average channel. This strategy has a constant return but the profitability is not high so the key to success with this strategy is money management. So if you use this strategy for day trading the money managemet must be developed on a weekly basis.
Time frame 5 min or higher.
Currency pairs: major, mino, Commodities, Indices and Stocks.
Apply this strategy only to volatile pairs.
Metatrader 4 indicators:
Simple moving average 60 period with level 15 and -15.
Non Lag Zig Zag (default setting.
123 pattern indicator
Pivot point levels only for intraday trading for swing trading you can use weekly pivot.
Ferrux FX Multi info
Trading rules Moving Average Channel with 1-2-3 pattern
trades only in the direction of the trend
Price above 60 ma channel only buy
price below 60 ma channel only sell
Price above 60 ma channel.
Buy arrow of the 1-2-3 patterns
Trend Strength >50
Ferrux FX green the same time frame and the previous (more high).
Price below 60 ma channel.
sell arrow of the 1-2-3 patterns
Trend Strength >50
Ferrux FX red the same time frame and the previous (more high).
Exit position with predetermined profit target minimum ratio 1.2 stop loss or on pivot points levels. Initial stop loss on the previous swing/high/low. Apply the moving stop loss.
Money Management Progression Lots
2) Fibonacci sequence 1-1-2-3-5-8-13-17-24
Important each currency pair has its own sequence. Do not mix a sequence on multiple currency pairs.
Why apply these very speculative sequences? This 1-2-3 pattern although it does not have a high profitability has a good distribution of the winning trades.
I recommend starting with three currency pairs maximum.
In pictures Moving Average Channel with 1-2-3 pattern
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