If you’re looking for a very profitable forex pattern that can be seen on all time frame’s and currency pairs, then look no further.
It’s called the 1-2-3 trading pattern and forms on every market turning point.
The 1-2-3 Forex Reversal Pattern strategy offers traders buy and sell signals based on the popular 1-2-3 pattern and the much needed flexibility and simplicity.
Chart Setup
MetaTrader4 Indicators: Figurelli Series.ex4 (default settings), Fibonacci Retracement tool*
*Here’s how to insert the Fibonacci Retracement tool directly from the Metatrader 4 platform.
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Download
Download the 1-2-3 Forex Reversal Pattern Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy order if the following indicator or chart pattern takes precedence:
- If the 1-2-3 forex pattern forms in the midst of a downtrend as seen on Fig. 1.0, with price finally breaking above the peak level labelled 2 (marked with the black horizontal line), price is said to be on its way up i.e. a buy order.
- If the red histograms of the Figurelli Series.ex4 custom indicator aligns above the 0.00 signal level as illustrated on Fig. 1.0, the market sentiment is said to be bullish, hence a trigger to go long on the designated pair.
Stop Loss for Buy Entry: Place stop loss below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions are in place:
- If price breaks below two consecutive Fibonacci retracement levels, then price can be said to be experiencing downward pressures i.e. a trigger to exit or take profit at once.
- If the histograms of the Figurelli Series.ex4 custom indicator align below the 0.00 signal level, price is said to be pushed lower, hence a trigger to exit or take profit without delay.
Sell Entry Rules
Enter a sell order if the following indicator or chart pattern are on display:
- If the 1-2-3 forex pattern forms in the midst of a uptrend as depicted on Fig. 1.1, with price finally breaking below the bottom level labelled 2 (marked with the black horizontal line), price is said to be on its way down i.e. a sell order.
- If the red histograms of the Figurelli Series.ex4 custom indicator aligns below the 0.00 signal level as seen on Fig. 1.1, the market sentiment is said to be bearish, hence a trigger to go short on the designated currency pair.
Stop Loss for Sell Entry: Place stop loss above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds true:
- If price breaks above two consecutive Fibonacci retracement levels, then price can be said to be experiencing upward pressures, thereby triggering a possible exit or take profit.
- If the histograms of the Figurelli Series.ex4 custom indicator align above the 0.00 signal level during a bearish alert, price is said to be pushed higher, hence a trigger to exit or take profit at once.
Sell Trade Example
