If you look at redchilly chart you can just about see where the first 123 low formed...The 123 low breakout happened when gsk gapped up..That 123 low you could not trade due to the massive gap up.
bear in mind that redchilly is using the 123 low for a very short term based trading.

That's a Bigger 123 low

If you wait for a break of 1689 and play the bigger 123 low your SL will be below 1602 which is quite far away from entry (87 points)
I normally trade 123 lows with a low R:R ratio - maximum SL Distance would be 50 points ( used to be 60 in past!!)

I would use the break of such a big 123 low to gauge the trend strength and momentum rather than trading it

I.e If we break above 1689 I would be looking for Long positions

Thanks RC,

I thought you were looking at 123 low as 1=1528, 2=1689, 3=1602 with target of 1775.5! Hence why I was asking if we can include the gap 1560 to 1611 on 22 April in a 123 low as part of the move from 1 to 2.
Would this also be possible or very unlikely?

Count wrote:
Hi Count

No need to thank me mate we are all here to share good trade set ups and help each other on this great website that Remo has set up

We should encourage others to join CV and make this a healthy trading community

123 low breakout on GSK I am on about is formed in the last four trading days
(1=1602, 2= high of 1640, and 3 = low of 1612)

1689 is a resistance for this trade if it makes sense as its a previous high

There are two gaps
1. 1560 to 1611
2. formed today as it gapped up at the open

I look at this gaps as rise in momentum as I am a trend trader

Hi RC,
Thanks for all your efforts in giving heads up for potential trades.
Sorry if I'm being a bit thick but don't we have to wait until above 1689 for confirmation of 1602.5 as low. Also, from your experience could the gap up from 1560 to 1611.5 potentially affect the outcome or can it just be disregarded?

Another 123 low breakout today

Long @ 1637
SL is below 1610