The 123 Forex Patterns indicator for MT4 is a powerful tool that helps traders identify potential trend reversals and price continuation zones. It is suitable not only for forex trading but also for stocks and cryptocurrencies, allowing traders to anticipate profitable buy and sell positions.
Trend-following traders particularly benefit from the indicator as it highlights pullback areas, enabling better entry points and improved profit margins. Beginner traders will find the 123 Forex Patterns indicator easy to understand and apply, making it an excellent starting point for pattern-based trading.
The 123 pattern is a three-wave price formation that identifies both trend continuation and reversal points. The pattern helps traders recognize bullish and bearish formations, providing clear entry and exit signals. The indicator works on all currency pairs available in the MT4 platform and is effective on hourly to daily timeframes, making it suitable for scalping, intraday, and swing trading.
The 123 Forex Patterns indicator targets key price movements around market highs and lows, helping traders identify trend continuation or reversal setups.
Identify the starting point of the reversal pattern (Point 1) at the low of a bullish candle.
Observe the first price movement and wait for a retracement (Point 2–3).
Enter a BUY trade when the price moves above the high of the blue candle marking the start of the pattern.
Spot the high of a bearish candle as the starting point (Point 1).
Track the retracement phase to Point 2–3.
Enter a SELL trade when the price breaks below the low of the red candle.
By targeting these key reversal levels, traders can catch the trend from the earliest stages, maximizing potential profits.
Identifies high-probability reversal zones
Works across forex, stocks, and crypto
Suitable for scalping, intraday, and swing trading
Highlights key price levels for entries and exits
Beginner-friendly with visual cues for trend reversals
The indicator simplifies chart pattern recognition, helping traders make informed decisions with minimal guesswork.
The 123 Forex Patterns indicator for MT4 is an essential tool for traders who want to identify reliable trend-following setups. By highlighting bullish and bearish patterns and key price levels, it helps traders anticipate price movements effectively. This free MetaTrader 4 indicator is especially recommended for beginner traders looking to start with pattern-based strategies.
For more free MT4 and MT5 indicators, visit IndicatorForest.com.
Published:
Nov 25, 2025 00:56 AM
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