1-2-3 Trading Signal

Here are few paragraphs from the book,

Generally, the more bars that are involved in the 1-2-3 buy or sell pattern THE BIGGER the move. In the above three examples I would expect bigger moves form the last two examples as opposed to the first one. Simply because there are more bars involved in the 1-2-3 patterns. Like I say, it is a general rule. Not hard and fast. Something for you to chew over.

Now, 1-2-3 patterns happen in ALL time frames. I mean from 5 minute tick charts right the way through to yearly charts. As I have never and never will day trade I am not going to show any examples of this. But let’s look at weekly and monthly charts, just to prove to you that the 1-2-3 pattern is valid in these time frames.