Humpty Dumpty’s Corner – The 1,2,3 Method

Hello Forex Fans!

Yes, its me again. Im obviously a glutten for punishment, but I can say that Jude made me do it! He he he……..Anyway, onward we go!

Last night we talked about trends. How can we tell when a trend is forming? Well, Im glad you asked, cause Im going to tell you. Buckle in cause here we go!

You will notice on the chart below, that EUR/CHF was forming an uptrend. One more way to test the start of a trend is the 1,2,3 method.

As you can see on the chart, the 1,2,3 method is demonstrated. This is another confirmation of a trend start. You can see shortly after the 3d leg formed is when our 100 MA’s crossed and our RSI went above the 50 line. This is an excellent time to get into a long. One rule of thumb is that the 3d leg is usually the longest leg in the trend.

I see a pattern forming on the USD/JPY currently. Can you find it? As a precaution, I am waiting for it to cleanly break the 61 fib line to go long. With US news tomorrow, it could effect the outcome.

After tomorrow’s news, we may see some trends start to form. If we do, you can rest assure I will be here to point them out.

Until next time………………

Humpty