The 123 MW Forex Trading System is a price action-based trading system that relies on simple yet effective chart patterns to identify potential trading opportunities.
The 123 MW system is based on the use of multiple timeframes, including the 1-hour, 4-hour, and daily charts.
Traders are encouraged to analyze the charts at these timeframes to identify potential trading opportunities.
The system also makes use of support and resistance levels, trend lines, and candlestick patterns to confirm trade signals.
The chart pattern itself consists of three points: point 1 is a high or low point in the market, point 2 is a retracement from point 1, and point 3 is a move in the direction of the original trend, which breaks through the level of point 1.
This pattern can indicate a potential trend reversal, and traders can enter trades in the direction of the new trend once it has been confirmed.
Buy Signal Generation With The 123 MW Forex Trading System
To buy in the 123 MW Forex Trading System, traders wait for a bullish price action pattern at a support level, such as a bullish pin bar or engulfing pattern. Confirmation occurs when the pattern’s high is broken, signaling an opportunity to enter a long position.
The stop loss is set below the pattern’s low, and profit targets are placed at previous swing highs or logical resistance levels. This strategy requires patience and discipline to wait for the right set-up.
Sell Signal Generation With The 123 MW Forex Trading System
In the 123 MW Forex Trading System, the sell signal occurs when the price breaks below the lower support level (S1) during a downtrend. The stop loss is set above the recent swing high and the take profit at the previous support level (S2).
The RSI indicator is used to confirm the strength of the downtrend. Proper risk management should be used to minimize losses.