I exchange 1-2-3 reversal/swing setups as explained in my two previous journal threads, Simple 1-2-3 PA Reversal Scalps and Another Journal, so please consult with these threads for detailed descriptions of the set-ups. The attachment below is basically how I trade swing reversals - not always always strict 1-2-3 patterns. My purpose is to enter a transaction with the least possible perceived risk. These approaches can be traded any time frame and on almost any currency pair; I exchange 5 min to 60 min time frames based upon my work schedule. Both approaches are really straightforward to execute, and most significantly for me, don't require using lagging indiors or other mathematical manipulations of price data to ascertain whether to buy or sell. Are these patterns profitable? Yep. Win rate of ~ 50% with a lot of scratch trades and small losses that are manageable. My Holy grail? Yep, so long as I strictly stick to my stoploss and permit my profitable trades to operate as long as you can within the time frame I'm trading.




Anyhow, I'll be Pleased to answer questions.

Best,

Dave

As usual, I'll edit this first article to ensure that descriptions of the transaction setups are clear and unambiguous. But please be aware that I don't have any strict rules to what constitutes a good swing or 1-2-3 pattern. The market will move wherever it wants to proceed, and my goal as stated above, is to input with the cheapest perceived risk as possible.

Interesting link that relates to trading: http://www.professionalgambler.com/Winperct.html