The 3-2-1 Approach: A Simplified Method for Trading Any Market

I am new to this thread and just want to ask if that system can be useful in trading currencies-spot forex.??
So, bthomas can you plesae tell me what to read to learn that system, or forward me what to read on forums, etc...
I use volumes from euro futures to trade currencies but I trade only high volume levels and did not know about your 3 rules and low volume levels which act as s/r levels.
So please where I can learn about low volume levels and market profile at all.
Thanks and especially for your nice thread.
 
Hi Pilatus,

My suggestion would be to read through the thread titled Market Profile Overview by Charles Cochran first. At the end of that very short thread is a list of Market Profile Resources that would be beneficial.

I would then read through the 3-2-1 Methodology thread in it's entirety. The rules and patterns are covered in reasonably good detail there.

If you would like more exposure and a taste of how the 3-2-1 is applied on a day to day basis, Trademaven offers a one week free trial each month in which you have access to Charles Cochran in the TIE trading room during regular market hours. This will demonstrate the real world application of Market Profile principles.

Let me know if I can be of any further assistance.
 
F2 Comments: The market opened soft and tried to rally into the 0730 news. The news was as forecast and deemed positive for the economy. Indexes rallied and financials sold. The 1000 EDT news was even worse for financials. The selling increased. When the record borrowings from next week’s Treasury auctions hit the tape, the selling accelerated again and was present into the day session’s close.

The market activity favors lower prices Friday. No news to impact tomorrow’s trading. Want to sell early strength and see if 113-20 can be taken out. If not, will cover. First sell zone is 114-11/15. Back up sell is 114-19 OB. Cover, if 113-20 then holds.

F2PM6-18.jpg
 
volume as an indication or tool has lost its edge over the past few years

what used to work - increasing price/declining volume and vice versa are no longer valid

these old tricks don't work anymore

unless you can prove otherwise!
 
Quote from bthomas:

Hi Pilatus,

My suggestion would be to read through the thread titled Market Profile Overview by Charles Cochran first. At the end of that very short thread is a list of Market Profile Resources that would be beneficial.

I would then read through the 3-2-1 Methodology thread in it's entirety. The rules and patterns are covered in reasonably good detail there.

If you would like more exposure and a taste of how the 3-2-1 is applied on a day to day basis, Trademaven offers a one week free trial each month in which you have access to Charles Cochran in the TIE trading room during regular market hours. This will demonstrate the real world application of Market Profile principles.

Let me know if I can be of any further assistance.
More...
Thanks buddy. I will read all you suggest and then will contact you and join Charles chat.
Thanks a lot.
 
Strong Close Leading Into Monday

F2 Comments: The analysis favored lower prices this morning/a retest of 113-20/24. The low was 113-22. Support held and shorts covered and day trade longs took the market to 115-03 before the session ended.

The close was strong. The market activity analysis favors a retest of 115-03 and/or higher prices on Sunday night. The market needs to trade higher Monday or next week’s auctions should pressure prices again. It is always easier to sell a higher interest rate.

I am a cautious buyer on Monday. Need to take out 115-03 to stay with the trade, and then 115-08/12. First buy zone is 114-21/25. Back up buy is 114-17 OB. Exit and/or reverse, if 115-04/08 is then rejected.

F2PM6-19.jpg
 
i think you are talking about standard up/down volume. most of the volume based stuff in this system revolves around volume profile.

Quote from livermoreorless:

volume as an indication or tool has lost its edge over the past few years

what used to work - increasing price/declining volume and vice versa are no longer valid

these old tricks don't work anymore

unless you can prove otherwise!
More...
 
Livermoreorless, no need to prove anything to you. What is most important is for you to prove it to yourself. It's your business...your responsibility.
 
Friday's Rally Continues

F2 Comments: Friday’s rally continued today helped along by weakness in the ES and Dow. The inverse relationship helped the trading today. Get the direction right and all the rest falls into place.

The ZN did make it to near resistance at 115-08. To hold the recent length in their positions the market will have to take out and then hold above 15-08.

Tuesday’s news: Existing Home Sales is expected at 4.83 M and the 2Y auction, which is almost always a good auction. Want to buy early weakness and see if 115-08 can be taken out. If not, will begin to look at the short side of the market.

Aggressive buy zone is 114-29/115-01. Preferred buy zone is 114-25/29. Reverse, if 115-08 is then rejected.

F2PM6-22.jpg
 
Tuesday Pre Market Comments

(06:54)_The auctions begin today w/40 B of the 2Y on the block. The market did probe higher OVN, perhaps satisfying yesterday’s buying structure. If the rally fails to develop this morning, this will be confirmed.

The ES’s reaction to the Existing Home Sales news at 1000 ET is the market’s focus followed by the 2Y auction. Always easier to raise new money with a higher interest rate too. Never easy during an auction week.

OK to buy one time this morning at our previous day’s price points ( Buy 114-29/115-01, exit and/or reverse, if 115-08/12 is then rejected. Back up buy is now 114-21/25 with an exit, if 115-00/04 is then rejected.
 
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