This pattern is very popular with traders who use the Pirce Action Strategy. More specifically, the 1-2-3 pattern is a signal of reversal that is distinguished by a sudden zig-zag at the end a trend. This indicator plots the pattern automatically on the MetaTrader chart (also available for MT5). The developer Pavel Zamoshnikov, from Russia, initially published the indicator on the MQL5 Market on September 28, 2016. He then released some updates on request by users. The tool was updated to include new features and bug fixes, ending with version 3.5 in April 2019. The tool has gained popularity because the pattern is widely sought after. The author’s pool of products includes 45 indicators, EAs and signals.
Pattern 1-2-3 Indicator Overview
This indicator is highly specialized, but because drawing a pattern can be subjective, it is difficult to code, and even harder to determine the correct levels to draw points 2 and 3. The formula is based on the Zig Zag Indicator, which is then adjusted by several conditional measures. Some of these can be changed in the “Method of pattern triggering” parameter. The Overview page shows all the capabilities of the indicator. The 1-2-3 pattern will be drawn in real time, and an alert will trigger once the pattern has been completed. The video that explains how the indicator works is short and great. The indicator can be used to show these patterns on any trading instrument – whether it is forex, equities or crypto.
The settings allow traders to easily adjust the actual display of 1-2-3 numbers. Fibonacci Levels are used with the non-repainting Zig Zag adjusted indicator. The points are then pinned to up to five Fibbonaci level scanned by the indicators. These levels can also be used for Stop Loss or Take Profit automatically placement. They can even display a description, if desired. The full alert component can be used to send a signal to the trader via email, push or mobile device. A new Exper Advisor contains the 1-2-3 pattern detection from this indicator.
In the settings panel, you can adjust the number of candles for calculation, Zig Zag indicator depth, the method for pattern triggering (breakout from the 3rd point line or just touching), show Take Profit and Stop Loss levels and how they are calculated, some visual settings and how or when the alert will be triggered.
The Pattern 1 2 3 indicator can be bought for $30 with 10 activations without the option to rent it. A demo is offered in the separate link on the ‘Overview’ page. This price is relatively low comparing to other indicators doing the same or similar function but we have found some free versions elsewhere, just not exclusively made for the 1-2-3 pattern.
A total of 19 users gave this indicator a good rating of 4.6 stars and commenting often, showing high interest. This descriptive 3-star review shows not all are happy:
“After purchasing the indicator, I found a lot of problems. From a formal point of view, this is a good indicator. However, when used in practice, there will be too much noise, which is not practical. The formation of the trend is mainly after the completion of the 123 mode, that is, after breaking the 2 points horizontal line. If only 2 points of the horizontal line are needed. After the breakthrough, the market signal is stable and other signals are redundant. Any other signal warnings are noise. There are no such separate alert message reminder options set in the metrics. Your indication is that multiple message reminders appear with a switch and the sound is the same. This is not a very good difference, it is trouble…”
Just note there are only two reviews with a rating lower than 5 stars.
This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/18523