Video: Visit the 1-2-3-4 trading setup with Soh Tiong Hum
Posted 30 June 2015
So this is really an effort now to recap some of Tflow®’s lessons into video for online learning. I tackle the 1-2-3-4 setup, the role of points 2 and 4 as well as psychology behind i.e. to find a good solid place to enter, one that is tried and tested. The illustration is based on a downtrend/sell setup. For up trend, change reference of resistance to support.
This video is in mp4 format and has a duration of 4 min 41 secs. If you have trouble viewing, please leave me a message. At the moment, I am not going to upload this video onto Youtube because it is really meant to be private. If there are some of you who are savvy with all this and can point out a better solution, please do so.
Also do feel free to leave me your questions as well as wish list for future topics.
Update 01 July 2015
1. I raised the volume some. It is still soft but it is the best I can do. Unfortunately I don’t want to re-do the whole video over until I am really free (like last 2 weeks of December when I don’t trade). It’s really fine with headphones.
2. If you can log in to see this page but can’t see the video, it means you don’t have an Mp4 player for your computer. I am not blocking it from you.
3. Reader Dennis Eng asked
You mentioned there is one scenario where pt 4 is so much higher than pt2. What if pt 4 cut back down to pt 2 , Is pt 2 still good?
This part of the discussion starts from the 3:00 mark. If point 4 cuts below point 2, there is the chance 2 is good but there is also the question whether the cutting down portion is also a false break. There was a previous Q and A posting made on NZDUSD. In the post, a similar setup was encountered at which a point 4 break point 2 turned out to be false. See below. The best way is to wait for price to retrace to 2 for a re-test in order to establish 2 as resistance again (watch video from 2:50 to 3:00 mark).
4. Some of you may notice that this frame below looks like a head and shoulders pattern. Yes it does. But the 1-2-3-4 setup is more than a chart pattern. However if it comforts you, pattern recognition helps and it will serve you if you understand the psychology behind both are quite similar.
5. Now that we think that the frame above looks like a head and shoulders, does this below look like a double top? Again a 1-2-3-4 is more than a double top but the principles are quite similar. Isn’t the double top about price hitting a resistance twice and failing? Hint: test – retest.