Features of the 123 Forex Patterns Indicator
The 123 pattern is a three-wave price formation that shows the patterns of market trend reversal and continuation. It recognizes bullish and bearish chart patterns to assist forex traders in making entry decisions during critical price reversal moments. The indicator works with all kinds of MT4 platform currency pair charts. The 123 Forex Patterns indicator focuses on significant price fluctuations around the daily market highs and lows to identify trend continuation or reversal patterns.
How the Indicator Can Benefit You
Recognizing trend reversals: The 1-2-3 pattern is a traditional technical analysis pattern you can use to spot possible trend reversals. Pivot point 1 marks the start of a potential trend correction, often leading to a break of the previous trend’s trendline.
Pivot point 2 signals a likely trend reversal when formed outside the previous trend’s trendline. Pivot point 3 confirms the 123 reversal pattern, ideally staying below or at the level of pivot point 1. The confirmation level is aligned with pivot point 2 and validates the pattern. You can save a lot of time by letting the indicator identify this pattern automatically.
Verifying your analysis: The indicator can assist you in verifying your analysis as it offers visual signals on the chart if you are already skilled at spotting 1-2-3 patterns.
Indicator Setting Description
Show Bears: Turn on/off, displaying the bearish trend patterns.
Show Bulls: Turn on/off, displaying the bullish trend pattern.
Show Status: Turn on/off, displaying the trend states and buy/sell information.
Show dots: Turn on/off, displaying the fractal points using the colored dots.
VolFilter: Turn the volume filter on/off to determine trend reversals.
VolMaFast: Allows you to alter the parameters of the fast volume moving average.
VolMaSlow: Allows you to alter the parameters of the slow volume moving average.