Display of 123 Pattern Indicators for MetaTrader 5 – Free Download [TradingFinder]

The Show 123 indicator is based on the classic 1-2-3 pattern, which is one of the most reliable patterns for detecting trend reversals or breakouts.

Using an approach similar to the Zigzag indicator, this tool identifies significant recent highs and lows in the market and marks them as 1, 2, and 3 respectively. It then provides entry signals for buy and sell trades.

Display 123 mode indicator table

Show 123 The general characteristics of the mode indicator are shown in the table below.

123 morphological indicators at a glance

Show 123 Pattern indicator is used to detect significant levels of trend reversal or breakout in markets such as Forex and cryptocurrency . This tool identifies three key points for entering a trade:

• Point 1: The beginning of the main wave, which can be a recent significant high or low;
• Point 2: The end of the correction wave or the first significant change in price direction;
• Point 3 : The second adjustment action, the trend may reverse or break through.

The main difference between the Zigzag indicator and this trading tool key lies in the display of fluctuations and the identification of trigger points, where a price breakout of Level 2 triggers a significant change in market momentum.

Indicators are in an upward trend

The price chart below shows the Bitcoin Cash Index on a 30-minute time frame.

In an uptrend, the Show 123 indicator identifies three consecutive points and marks them in green. In this mode:

• Point 1 formed at the market's recent low, indicating the beginning of an uptrend;
• Point 2 represents the peak of the first adjustment wave and serves as a temporary resistance level;
• Point 3 shows a downward correction after point 2, but is still above point 1, indicating weak selling pressure and strong buying pressure.

When the bullish candle closes at point 3, a buy entry signal is issued, confirming that the market is continuing its upward trend.

Indicators are in a downward trend

The chart below shows the Nikkei on the 1 hour time frame.

• Point 1: The market peaks and starts to fall;
• Point 2 : Initial correction low and temporary support;
• Point 3 : Selling pressure, upward correction is weak.

This structure creates the right range to enter a sell trade, signaling the beginning of a strong downtrend.

Displays 123 mode indicator settings

The image below shows the setup of the display 123 pattern indicator in MetaTrader 5:

• Max bars : Maximum number of candles to process
• Aggression : Indicator sensitivity when identifying points
• Font Name : The name of the font used to display numbers
• Font Size : Font size for displaying numbers
• Pip Text Height : Text height of displayed values ​​on the chart

Conclusion

Show 123 Pattern indicators, by identifying three-point structures and focusing on breakout levels technical analysis , provide an accurate tool for detecting trend continuation or reversal.

In an uptrend, a break above the point 2 level after holding higher lows indicates active buyers, while in a downtrend, a price break below the point 2 level and lowering highs indicates strong sellers.