The 123 Patterns V7 forex indicator is a typical breakout Metratrader 4 indicator.
This technical indicator draws 2 colored breakout lines on the chart, a blue and red one.
The blue signal line is used to trade bullish breakouts while the red signal line is used to trade bearish breakouts.
In the upper left corner of the activity chart, the 123 Patterns V7 forex indicator displays the most current breakout signal, either “BUY” or “SELL”.
It’s recommended to use the 123 Patterns indicator together with a trend following indicator or an oscillator (RSI, MACD,..).
For instance, when the 123 Patterns forex indicator gives a breakout signal to the downside and the overall trend is down, it might be a good idea to trade the sell breakout.
Furthermore, the indicator also displays the current spread and ratio on the chart.
The EUR/USD 5-Minute chart below displays the 123 Patterns V7 Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the 123 Patterns V7 MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when price closes above the blue breakout line and the overall trend is upward.
Sell Signal: Open sell trade position when price closes below the red breakout line and the overall trend is downward.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (ShowBears, ShowBulls, ShowDots) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the 123-forex-patterns.ex4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)