The 1-2-3 Trading Method, as we’ve got been instructed, is also blemished.
Those who have studied the one-2-3 Pattern are told that time three will ne’er Retrace below purpose one in a veryn Up Trend and ne’er Retrace over purpose 1 in a Down Trend. we’ve got been instructed that if it happens “All bets ar off.” and “The 1-2-3 Pattern becomes invalid.” However, if you check up on plenty of charts you may realize that this Rule is commonly broken.
The Popular 1-2-3 Pattern is firmly primarily based in Elliott undulatory theory. the explanation why we’ve got been instructed that time three will ne’er retrace on the far side purpose one is as a result of, in Elliott undulatory theory, Wave a pair of will ne’er retrace on the far side the origin of Wave one (beyond 100 percent of Wave 1). If this Primary Rule of Elliott Waves is profaned the Wave Pattern is claimed to become invalid.
However, in follow I even have determined various terribly giant trends that started with associate “Invalid” Elliott Wave count or associate “Invalid” 1-2-3 Pattern. I mentioned however the 1-2-3 Pattern has its foundation in Elliott Waves. we tend to conjointly found that the approach we’ve got learned to identify the pattern is also blemished as a result of usually “Invalid” patterns lead to nice trades.