1-2-3 PATTERN INDICATOR MT4

Find out the market trend with the five Fibonacci-level 1-2-3 Pattern indicator.

• The 1-2-3 Pattern indicator for MT4 specifies the three points pattern at the end of the trend. The indicator plots a zig-zag pattern with three points. These points or lines are; High/low, entry, and Fib. That’s the reason why it is called the 1-2-3 pattern.
• The Fibonacci levels add up with this non-painting zig-zag pattern and pinpoint five Fibonacci levels.
• These Fibonacci levels, along with the non-repainting zig-zag pattern of three lines, detect the price action. Generally, the indicator is useful for price action strategies because of its ability to illustrate price action trends.

The five Fib levels act as a support and resistance, so you can take your positions accordingly. You can use the 1-2-3 Pattern indicator on any timeframe, but a timeframe from 5-minute to 30-minute is ideal.

How to trade with the 1-2-3 pattern indicator?

• The 1-2-3 Pattern indicator pinpoints price action at the end of the trend. With non-repainting zig-zag lines and Fibonacci levels, the indicator gives you entry and exit signals.
• When the market is in an uptrend, the indicator will plot a green line suggesting buy signals. Conversely, when the market is downtrend, this indicator will draw a blue line, indicating a sell signal.
• The five Fibonacci levels act as support and resistance. The lower Fib level act as a support, and the higher pone act as a resistance.

When the trend changes its course, the indicator changes its color from green to red or vice versa. So, you can exit the trade. You can also exit the trade when the price action falls below or moves above the line.

1-2-3 Pattern indicator buy setup

• Іndicator should suggest an uptrend.
• Wait for the trend to fully develop.
• Enter the trade where the indicator begins.
• Place a stop-loss near the low of buying point.
• Exit the trade when the price dips below the line.

1-2-3 Pattern indicator sell setup

• Іndicator should suggest a downtrend.
• Wait for the trend to fully develop.
• Enter the trade where the indicator begins.
• Place a stop-loss near the high of a selling point.
• Exit the trade when the price goes above the line.

Conclusion

The 1-2-3 Pattern indicator pinpoints entry and exit points and tells you the price action trends. The Fib levels allow the indicator to show support and resistance levels.