Display of 123 Pattern Indicators for MetaTrader 4 – Free Download [TradingFinder]

The Show 123 indicator is based on the classic 3-2-1 price pattern, considered one of the most reliable reversal and trend breakout structures. technical analysis .

This tool uses an algorithm similar to the Zigzag indicator to identify recent market swing highs and lows and labels them as 1, 2, and 3 respectively.

Display 123 indicator table

The following table presents the general characteristics of the Show 123 indicator.

List of 123 indicators

The Show 123 indicator in MetaTrader 4 is a Zigzag-like analytical tool used to identify potential trend reversal levels or breakouts in financial markets, such as Forex and cryptocurrencies:

• Point 1 : The beginning of the current wave (the latest high or low point of the wave);
• Point 2 : The end of the correction wave or the first major change in price trend;
• Point 3 : Potential trend breakout or reversal during the second adjustment.

Unlike the standard Zigzag indicator which only plots fluctuations, Show 123 provides a suitable structure to identify trigger points where a breakout of Point 2 levels could lead to a change in market momentum.

Indicators are in an upward trend

The price chart below shows the EUR/USD currency pair on a 30-minute time frame.

In an uptrend, the trading tool identifies three consecutive points and marks them green. In this structure:

• Point 1 formed at the market's recent low and began to rise;
• Point 2 shows the peak of the initial corrective wave and acts as a temporary resistance level;
• Point 3 marks a downward correction after point 2, but is still above point 1, indicating reduced selling pressure and increased buying pressure.

After the bullish candle closes at point 3, a buy entry signal is issued.

Indicators are in a downward trend

The chart below shows the Ripple Cryptocurrency Index (RIPPLE) on the 1-hour time frame. In a downtrend, the Display 123 indicator identifies three consecutive points and marks them in red, showing a reversal or trend breakout structure.

Point 1 is formed at the market's high, point 2 is formed at the low of the initial corrective wave, and point 3 represents a short-term upward reversal, still below point 1, indicating weak demand.

Showing 123 indicator settings

The image below shows the settings of the Display 123 indicator in MetaTrader 4:

• Maxbars : Maximum number of candles to process
• Aggression : Indicator sensitivity when identifying points
• Fontname : the name of the font used to display numbers
• Fontsize : font size for displaying numbers
• PipTextHeight : The text height of the displayed value on the chart

Conclusion

Show 123 The Pattern Indicator is an accurate tool for detecting trend reversals or continuations by identifying three-point structures and focusing on important breakout levels.

In an uptrend, an effective breakout of level 2 after holding higher lows indicates strong buyer strength, while in a downtrend, a breakout of the same level and lower highs confirms weak demand.