Pattern 1 2 3
The indicator automatically identifies the 1-2-3 pattern on the chart.
- The indicator is able to monitor the formation of pattern in real time. It informs the trader when the pattern is completely formed (when the price breaks the line in point 2) and displays the completed patterns in history. The patterns are never redrawn.
- The indicator can identify patterns on any instruments (currency pairs, stock market, gold, etc.) without the need to adjust to each instrument.
- Simple and clear visualization of patterns. It is possible to display points 1,2,3 on a chart (option "Show points #1,2,3").
- The indicator determines the possible targets for triggering the pattern. The targets are calculates based on the Fibonacci levels or the Fibonacci extension (set by the Method of calculating the Profit Levels parameter). From one to five targets can be calculated. These targets have a description on the chart, which contains the Fibonacci number and the price level. In order to show them, enable the display of graphical objects descriptions (press the F8 key on the chart and select the "Show object descriptions" option).
- The indicator uses a custom proprietary non-redrawing ZigZag for determining patterns, therefore the indicator never repaints its signals.
- The indicator generates audio and text message when a pattern is formed. It features sending email messages and push notifications to mobile devices (the 'ON/OFF-Mail' and 'ON/OFF-Push' parameters).
You can test the indicator's demo version here.
Features of trading the 1-2-3 pattern
- The 123 pattern can indicate either a reversal or a trend.
- The 123 pattern is effective on any instruments and timeframes from M5 to MN.
- The greater the number of bars forming the pattern (from point 1 to point 3), the greater the price movement is predicted after breaking the pattern.
- If point 1 has a pin-bar (Hammer or Shooting Star in candlestick analysis), it strengthens the pattern.
- For Intraday trading, it is recommended to look for the pattern only on the European and American sessions.
- According to the trading system, a pattern is considered to be triggered when a bar breaks the line at the level of point 2. That is, the bar must close on the other side of the line, and not simply touch or pierce it. However, the indicator can also consider a simple touch of the line from point 2 as pattern triggering (parameter "Method for pattern triggering").
- Number of bars for the indicator calculation - the number of bars for the indicator calculation
- Depth of ZigZag - the number of bars to search for ZigZag peaks (analogue of the Depth parameter of the standard ZigZag)
- Color to BUY / Color to SELL - the color of lines forming a buy/sell pattern
Parameters of profit levels
- Method for pattern triggering - choose method: "Touch of the line from point #2" or "Breakout of the line from point #2"
- Show the Profit Levels - show the profit levels (Disabled - do not show; Current pattern only - show the target levels for the current pattern only; All patterns - show the target profit levels for all patterns in history)
- Method of calculating the Profit Levels - method for calculation of profit levels (Fibo Levels; Fibo Extention)
- Profit target #1 (Fibo number) - Profit target #5 (=0 - disable) - Fibonacci number for calculating the target №1 - №5 (if =0, line is not displayed)
- Style line of the Profit Levels - line style of profit levels
- Method of calculating the Stop Loss - calculate SL from point 1 or point 3 to output the stop level
- Show points #1,2,3 - show/hide points
- Points size - choose size
Notifications and sound
- Text of the Message - information about the pattern (Full - all levels; Short - only the price level of breakout line in point 2)
- ON/OFF – Sound when the signal – enable/disable sound signals
- Signal of the line breakdown - pattern 123 is complete – name of the sound file for line breakout - the 1-2-3 pattern completed
- Pre-alarm - pattern 123 began to emerge – name of the sound file played when a pattern starts to form.
- ON/OFF - Alert – enable/disable messages in the terminal when signals occur.
- ON/OFF - Mail – enable/disable sending notification emails
- ON/OFF - Push – enable/disable sending push notifications to mobile devices
This message appears only if there are no more important messages about the formation of the Pattern-123 or the breakdown of the point #2 line at this moment.
2. Added the option "Text of the Message": Full (detailed information on the pattern: all levels) / Short (only the price level of breakout line in point 2)
3. Added the option "Method of calculating the Stop Loss" (calculate SL from point 1 or point 3) to output the stop level
4. Fixed minor bugs.
2. Added two additional Fibo levels for target calculation. Now the indicator has five levels for each pattern. The level will not be displayed if it is 0.
3. Added displaying of points 1,2,3. Enabled by the "Show points #1,2,3" parameter
The frequency of zigzag change is configured in the "Depth of ZigZag" parameter - an analogue of the "Depth" parameter of the standard ZigZag.