The 1 2 3 Pattern Forex Indicator is a reversal pattern that ends at a 127 percent or 161.8 percent Fibonacci extension and is characterized by a string of higher highs or lower lows.
It may indicate that the market has reached the end of its current trend and that a potential price chart reversal is likely to take place. Both the bullish and the bearish versions of the pattern can be used to identify potential buy and sell opportunities.
This indicator pattern is a reversal pattern distinguished by a string of higher highs or lower lows. There are bullish and bearish variations of it.
How to identify the 1 2 3 Pattern Forex Indicator
As you can see above, point 1 is where the price makes its initial low, marking the start of the pattern. After that, the price retraces before creating the second drive’s new bottom at point 2. A 127 percent or 161.8 percent Fibonacci extension of the initial drive should be seen in this second low. The price then reverses direction and launches a third drive down, which should also be a Fibonacci extension of drive two by 127 percent or 161.8 percent. You should concentrate your focus on the third drive since this is where you will find a lengthy entry.
1-2-3-Pattern Forex Indicator download link