It is amazing how precise this pattern can be. See the exact reaction even on D1 timeframe. Makes me think if such a big stop loss is really worth for the 121 pattern.
For more info about 121 / One2One pattern and the confirmation methods see -> 121 - table of content
Last edited by Admin; 08-08-2012 at 02:49 PM. Reason: 121 pattern examples on Forex market - Updated
Video example of the 121 bearish pattern:
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Interesting and common scenario when after initial proper reaction on the Gartley (in this case bullish), market fails to reach the reasonable TP level (A point price level) and draws a 121 pattern in opposite direction (in this case bearish). Video presents also the decision point (Gartley will continue or 121 will form) at which trader may decide to enter a trade, and reverse if needed.
i like 121 pattern.. the only thing is about targets .. i prefer to place my tp1 in the 50% retracement of the CD leg
If you consider them as running correction the minimum, minimum TP should be on C point price level.
... but I know that some people just take couple of pips assuming there will be always a reaction/short rally on D point price level.
Thanks kor for clearing that up. Even if technically that's the minimum TP, for this pattern I don't feel confortable if I don't take some profits middle way because what I don't like to do is to trail the stop or move to breakeven, at least not till first target is reached.
Is there a Graph/ Pic where we can see ALL the fib% leg retracement and "C" extention rules ?