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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).

NZDUSD: H4 1234 (Shane)

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.

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Does this resemble a head and shoulders chart pattern?

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.

""

Does this look like a double top?

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17 thoughts on “Video: Visit the 1-2-3-4 trading setup with Soh Tiong Hum”

  1. Vince Ding says:

    Great!

  2. Chiah Hang Dennis Eng says:

    Hi Mr Soh,
    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?
    Cheer,
    Dennis

  3. Dennis says:

    This is awesome! Would like to see a continuation of the basics haha! Reinforcement is always good :) Thx for the vid, Tiong Hum.

  4. Su Bee Chin Clifford says:

    haha the ending shock me hahaha… i watch too much Facebook video ending with prank haha
    nice video mr soh, good refresh for T-flow have no ideal for next video ^_^

  5. Vincent Wee says:

    Could you also make a video to demonstrate the entry techniques in 1234 setup?

  6. Siok Neo Elaine Anne Lim says:

    Thanks for the video, I was not able to register and digest all these during the weekend class, at least now i have a place I can revisit for revision. Btw no problem hearing you.
    Perhaps you may want to consider doing a video on candles?

    1. Soh Tiong Hum says:

      Yes. More of everything – check. Entry and trigger – check. What I think under circumstances where time and labour is scarce, is for me to tackle portions of the course that is exclusive to TerraSeeds, Tflow®, Binni and I and not available nowhere else. Therefore, entry is something that might be the next one after I put my mind to it. On the other hand, candles as a topic is pretty broad and plentiful in public domain. So Elaine you got to narrow your request – tell me if there is a specific part of candlesticks that you need covered. Otherwise I will have to give you some reading material from elsewhere but probably not a video from me.

  7. Mehnaz Ghanchi says:

    Another great video….Thanks!!

  8. Benson Ang says:

    nice one mr soh, good recap on TFLOW strategy. Would be good if you can do a video on the different candle patterns or Indicators to spot at point 2 or 4 to reinforced the significance of 1234 Price action.

  9. Steven Lim says:

    how do u confirm the re-test? Fr the nzdusd chart, there is a candle with a tail failing to break up pt 2 which i would see it as a re-test & i would have shorted, but subsequently price shoot up.
    So my question is how do we confirmed a re-test is good?

    1. Soh Tiong Hum says:

      You confirm a re-test in 2 ways:
      1. Price shows candlestick pattern at the point of test (2 or 4) and prints a resistance OR
      2. Price eventually breaks 1-3 trend line.

      In the NZDUSD example, you observed a candlestick with a tail. The tail shows reaction to resistance at point 2 but there never was a confirmation. A confirmation requires candlestick patterns that confirm resistance like evening star, evening doji star, bearish engulfing candles ALL which have a bearish candle (black) that follows. With NZDUSD, there was no confirmation since all the candles just kept going up (white).

  10. Tan Teng Chew says:

    Thanks for the video… indeed a refresher! =)

  11. Ahmed Ibrahim says:

    fantastic..

  12. Edmund TAN says:

    Good video explaining and reinforcing what I learnt abt 1234.
    Thks, Tiong Hum.

  13. louis Leow says:

    Great Video!

  14. louis Leow says:

    Hi Tiong Hum,

    For Pt 3, must it be higher than Pt 1? Can Pt 3 be same about the same level as Pt 1? Can Pt 3 be lower than Pt 1?

    Appreciate your comments.

    1. Soh Tiong Hum says:

      IN a down trend, pt 3 must be higher or same as 1. Cannot be lower.

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