1 2 3 Forex Pattern Indicator V6 With Arrows (MT4)

About the 1‑2‑3 Forex Pattern Indicator V6

The 1‑2‑3 Forex Pattern Indicator V6 for MT4 automatically detects classic 1‑2‑3 reversal patterns with clear arrow signals.

Ideal for spotting reliable trend exhaustion and entry points, it simplifies pattern-based trading for both beginner and advanced traders.

Key Features

• Auto 1‑2‑3 detection: Identifies the three-point reversal pattern (swing point, pullback, breakout)
• Arrow alerts: Bullish and bearish arrows appear when the pattern completes
• Customizable filters: Adjust pattern sensitivity, look-back periods, and alert types
• Non-repainting: Signals remain fixed once displayed
• Multi-timeframe use: Works consistently on timeframes from M5 to H4

How It Works

1. Swing identification: Detects three consecutive trend points: high (1), low (2), and breakout point (3)
2. Pattern validation: Confirms breakout past point 2 to complete formation
3. Signal generation: Plots an arrow and an optional alert once 3 is exceeded

Free Download

Download the “123PatternsV6.ex4” indicator for MT4

Benefits of Using This Indicator

• Helps catch reversals early with a classic pattern
• Visual clarity via arrows simplifies trading decisions
• Non-repainting design ensures historical integrity
• Versatile for trend-following or counter-trend setups
• Reduces mental load—pattern detection is automated

Indicator Example Chart (EUR/USD M5)

How to Trade Using This Indicator

Entry Signals

• Buy: Blue arrow appears when price breaks above point 2 after a valid 1‑2‑3 bullish setup
• Sell: Red arrow appears when price breaks below point 2 after a valid bearish setup

Stop‑Loss & Take‑Profit Setup

• Stop‑Loss: Place just below point 2 low (for Buy) or above point 2 high (for Sell), typically a 5–10 pip buffer
• Take‑Profit: Measure the distance from 1 to 2, project it from point 3 for the pattern target, or use a 2:1 R/R ratio

Example Trade Scenario

1. USD/JPY H1: Points 1→2→3 form, price breaks above point 2, green arrow appears → Buy.
2. Enter at candle close, confirming breakout.
3. Stop‑Loss: Just below point 2 low.
4. Take‑Profit: Distance (1–2) projected from 3, or aim for 2:1 reward ratio.

Download Now

Download the “123PatternsV6.ex4” indicator for Metatrader 4

1-2-3 Pattern v6 + X Super Trend Candles Strategy for MT4

This strategy combines the classic price action strength of the 1-2-3 Forex Pattern Indicator v6 with Arrows and the trend-confirming clarity of the X Super Trend Candles Forex Indicator.

The goal is to identify valid trend reversal or continuation setups based on proven 1-2-3 chart patterns, confirmed by candle-color shifts from the Super Trend tool.

What is this Strategy About?

The 1-2-3 Pattern Indicator v6 detects key turning points in the market using the popular 1-2-3 formation — a reliable reversal structure often seen at major tops and bottoms.

It marks entries with arrows when the pattern completes.

The X Super Trend Candles Indicator colors the price candles based on the trend direction, making it easy to visually confirm the current momentum.

When both align, it gives high-probability trade setups that are easy to follow and act on.

This strategy works best on M15, M30, and H1 charts and is suitable for both reversal traders and those looking for early entries in trend continuations.

Buy Setup Rules

• Wait for a bullish arrow signal from the 1-2-3 Pattern Indicator v6, indicating the completion of a valid bullish pattern.
• Confirm that the X Super Trend Candles Indicator is showing green candles (bullish trend confirmation).
• Enter a buy trade at the close of the candle where both conditions align.
• Stop Loss: Place just below the pattern’s point 3 (lowest low of the structure).
• Take Profit: Use a 1:2 risk-to-reward ratio or the next resistance zone.

Sell Setup Rules

• Wait for a bearish arrow from the 1-2-3 Pattern Indicator signaling a valid bearish formation.
• Confirm with red candles from the X Super Trend Candles Indicator.
• Enter a sell trade at the close of the confirmation candle.
• Stop Loss: Set just above the pattern’s point 3 (highest high of the structure).
• Take Profit: Aim for 2x the risk or exit near the next support level.

Advantages of the Strategy

• Uses a time-tested chart pattern (1-2-3) backed by visual trend confirmation.
• Easy-to-read signals — arrows and candle colors make execution simple.
• Works well in both trending and reversing markets.
• Can be applied across multiple timeframes depending on trading style.

Drawbacks

• False signals may appear in ranging markets without trend confirmation.
• Requires patience to wait for both indicators to align.
• 1-2-3 patterns can be subjective if traded manually — rely on indicator logic.

Strategy Conclusion

The 1-2-3 Pattern v6 + X Super Trend Candles Strategy is a disciplined approach that combines price structure and trend momentum.

With clear entry signals and visual trend confirmation, this system reduces emotional decision-making and enhances consistency.

It’s especially effective for traders who prefer structured, rule-based setups.

Be sure to test the strategy thoroughly on a demo before applying it in live markets.

Back‑Test Insights, Pros & Cons

Back‑Test Results

• Effective in trending environments, with full pattern completion required
• Win rate ~60–85%, improved with sensible risk management

Pros

• Classic reversal pattern with clear entry criteria
• Non-repainting ensures signal trust
• Automatic identification reduces manual chart scanning

Cons

• Patterns may not form often in flat markets
• Breakout can fail—use additional filters (e.g., volume or trend)
• No built-in exit handling—requires user-defined TP method

Indicator Specifications

Final Words

The 1‑2‑3 Forex Pattern Indicator V6 is an elegant and automated tool for traders who rely on classic reversal setups.

It simplifies the detection process while ensuring historical integrity.

When used with solid SL/TP rules and trend confirmation, it provides a disciplined approach to capture key reversal moves in MT4.