Show 123 Pattern Indicator for MetaTrader 5 – Free Download [TradingFinder]

The Show 123 Indicator is based on the classic 1-2-3 pattern, which is one of the most reliable patterns for detecting trend reversals or breakouts.

This tool, employing a method similar to the Zigzag indicator, identifies significant recent market highs and lows, labeling them as 1, 2, and 3, respectively. It then provides entry signals for buy and sell trades.

Show 123 Pattern Indicator Table

The general features of the Show 123 Pattern Indicator are shown in the table below.

Show 123 Pattern Indicator at a Glance

The Show 123 Pattern Indicator is used to detect significant levels of trend reversal or breakout in markets such as Forex and cryptocurrency. This tool identifies three key points for entering trades:

• Point 1: Start of the main wave, which can be a recent significant high or low;
• Point 2: End of the corrective wave or the first significant change in price direction;
• Point 3: The second corrective move, where the trend may reverse or break.

The primary difference between the Zigzag indicator and this trading tool lies in the display of fluctuations and the identification of the Trigger Point, where a price break at level 2 triggers a significant change in market momentum.

Indicator in an Uptrend

The price chart below shows the Bitcoin Cash index on a 30-minute time frame.

In an uptrend, the Show 123 Indicator identifies three consecutive points and marks them in green. In this pattern:

• Point 1 forms at the market's recent low and shows the start of the upward movement;
• Point 2 represents the peak of the first corrective wave and acts as temporary resistance;
• Point 3 shows the downward correction after Point 2 but remains above Point 1, indicating weak selling pressure and strong buying pressure.

A buy entry signal is issued when a bullish candle closes at Point 3, confirming the market's tendency to continue upward.

Indicator in a Downtrend

The image below shows the NIKKEI index on a 1-hour time frame.

• Point 1: Market peak and start of the downward movement;
• Point 2: Low of the initial correction and temporary support;
• Point 3: Selling pressure with weak upward correction.

This structure creates a suitable range for entering sell trades, marking the beginning of a strong downtrend.

Show 123 Pattern Indicator Settings

The image below displays the settings for the Show 123 Pattern Indicator in MetaTrader 5:

• Max bars: Maximum number of candles to be processed
• Aggression: Indicator sensitivity in identifying points
• Font Name: Font name used to display numbers
• Font Size: Font size for displaying numbers
• Pip Text Height: Text height for displaying values on the chart

Conclusion

The Show 123 Pattern Indicator, by identifying the three-point structure and focusing on breakout levels in technical analysis, provides an accurate tool for detecting trend continuation or reversal.

In an uptrend, breaking the level at Point 2 after holding a higher low indicates active buyers, while in a downtrend, a price drop below level 2 with a lower high shows seller strength.