Introducing the 123 pattern trading system. This is a system derived from a legendary price action pattern, trading the pattern is proven profitable for many traders. The 123 pattern trader has been coded for metatrader4 and currently it works best on higher timeframes.
This system may not be completely suitable for beginners, as it contains many supporting indicators that need to be confirmed before entering in to trades.
- 123 pattern trader overview
- How To Buy Using 123 pattern trader
- How to sell using 123 pattern
- Post Summary
123 pattern trader overview
The 123 pattern trader combo is a complex system which only works when everything is done right. There are two indicators in the indicator window, the first is called the day look and the second one is called day expl.
The day look indicator is similar to MACD, it has some arrows that provide a signal every time price action converges. The day expl works like a histogram with a yellow moving average.
The other indicators are located in the main chart: day signal arrow, day open line, day signal ultra, day bar and 123 patterns v6.
The day signal arrow indicator only points arrows in the direction of the signal. day open line draws a visual white line at the open of the day, the day ultra tracks market action similarly to a moving average.
Finally its the 123 pattern Version 6 indicator, this indicator also has its own arrows to generate signals.
How to buy with 123 pattern trader
- Use the day ultra indicator to determine trend direction, The trend is bullish when prices trend above the day ultra
- You may use other indicators to confirm if the trend is really bullish
- You can either buy before or after the blue arrow pointing arrow confirms a signal
- Place the stop below the red 123 pattern trader lines
- Place target on the higher price action zone
How to sell with 123 pattern trader system
- Determine trend direction, the easiest indicator to use for this task is day ultra. If price are below the day ultra, the market is generally bearish.
- Sell when the 123 pattern v6 prints a red arrow
- Place the stop above the blue line
- Targets must be on lower price zones
These instructions are only an abstract, after all a trading system is only a tool. Money management and discipline are essential for excellent results. You can also use your own imagination, add indicators you think will make the picture much more clear, or remove indicators that are destructing you from seeing the real picture, there are no limits.