Show 123 Pattern Indicator for MetaTrader 4 – Free Download [TradingFinder]

The Show 123 Indicator is based on the classic 3-2-1 price pattern and is considered one of the most reliable reversal and trend-breakout structures in technical analysis.

Using an algorithm similar to the Zigzag indicator, this tool identifies recent market swing highs and lows, marking them as 1, 2, and 3 respectively.

Show 123 Indicator Table

The table below presents the general features of the Show 123 Indicator.

Show 123 Indicator at a Glance

The Show 123 Indicator in MetaTrader 4 is an analytical tool similar to Zigzag, used for identifying potential trend reversal levels or breakouts in financial markets like Forex and cryptocurrencies:

• Point 1: Start of the current wave (recent swing high or low);
• Point 2: End of the corrective wave or the first significant change in price movement;
• Point 3: Potential trend breakout or reversal at the second correction.

Unlike the standard Zigzag indicator, which only draws fluctuations, Show 123 provides a suitable structure for identifying the Trigger Point, where breaking the level at Point 2 can lead to a change in market momentum.

Indicator in an Uptrend

The price chart below shows the EUR/USD currency pair on a 30-minute time frame.

In an uptrend, the trading tool identifies three consecutive points and marks them in green. In this structure:

• Point 1 forms at the market's recent low and initiates the upward move;
• Point 2 shows the peak of the initial corrective wave and acts as temporary resistance;
• Point 3 marks the downward correction after Point 2 but remains higher than Point 1, indicating reduced selling pressure and increasing buying pressure.

A buy entry signal is issued after the close of a bullish candle at Point 3.

Indicator in a Downtrend

The image below shows the Ripple cryptocurrency index (RIPPLE) on a 1-hour time frame. In a downtrend, the Show 123 Indicator identifies three consecutive points and marks them in red, displaying the reversal or trend-break structure.

Point 1 forms at the market's peak, and Point 2 at the low of the initial corrective wave, while Point 3 represents a short-term upward reversal that remains below Point 1, indicating weakness in demand.

Show 123 Indicator Settings

The image below displays the settings for the Show 123 Indicator in MetaTrader 4:

• Maxbars: Maximum number of candles to be processed
• Aggression: Indicator sensitivity in identifying points
• Fontname: Font name used to display numbers
• Fontsize: Font size for displaying numbers
• PipTextHeight: Text height for displaying values on the chart

Conclusion

The Show 123 Pattern Indicator, by identifying the three-point structure and focusing on important breakout levels, is a precise tool for detecting trend reversals or continuations.

In an uptrend, a valid breakout of level 2 after holding a higher low indicates buyer strength, while in a downtrend, a breakout of the same level with a lower high confirms weakness in demand.