1-2-3 Pattern Day Trading Strategy Download

One day trading strategy that can be downloaded for free is the 1-2-3 Pattern Strategy. The 1-2-3 patterns, day signal ultra, and other important indicators are used as filters to determine the trend in the successful trend-following approach known as the 1-2-3 Pattern Day Trader. This strategy, which is mostly employed in Forex intraday trading, finds pivot lows and highs, enabling traders to enter positions that follow the market trend and benefit from a good risk-to-reward ratio.

This Day Trading Strategy’s Indicators

The Day Signal Arrow, Day Open Line, Day Signal Ultra, Day Bar, Day Look, Day Explosion, and the 1-2-3 Pattern V6 are among the indications used by the system. Together, these indications enable traders to identify the proper direction of the market in close proximity to support and resistance zones.

These are the primary markers that this technique uses to choose entries. However, there is an extra indicator included with the system, so you can try further filtering the signals.

1-2-3 Pattern V6

This indicator is essential to the approach since it determines the entrance signal and produces Blue and Orange buy-sell arrow indications. Other indicators in this day trading strategy assist in removing less lucrative arrow signals from this indicator.

Day Signal Ultra

Day Signal Ultra functions as an EMA 190 with color changes. When the price is more than the Day Signal Ultra, this ribbon’s color turns white. On the other hand, when the price drops below the Day Signal Ultra, the ribbon turns orange. To determine the intensity of the trend, one must consider the slope of the Day Signal Ultra. Traders ought to think about taking long positions when the price is above the indication and the slope is rising. Conversely, when the indicator slope is descending and the price is below the Day Signal Ultra, it is recommended to execute short transactions.

Day Look

Another trend-following indicator is called Day Look, and it plots a histogram using the difference between the long- and short-term moving averages. A price trend is indicated by a histogram that is above the zero line when it shows an upward trend in prices and a downward trend if it falls below it.

Day Explosion

Renamed Waddah Attar Explosion indicator with a nice color scheme is what Day Explosion is basically. It shows trend strength, explosion force, or momentum and works on several time intervals. When the trend is upward, the histogram’s color changes to white; when it is downward, the bars turn orange. In addition, the indicator plots an explosion signal line that serves as a momentum threshold and offers useful information for all currency pairs throughout all time periods.

This 1-2-3 Pattern Strategy can provide you with trade signals that you can use exactly as they are or, as is advised, refine the signals further by adding your own chart research. Although this technique is accessible to traders of all skill levels, it can be helpful to practice on an MT4 demo account until you have the consistency and self-assurance necessary to move on to actual trading.

The entire day trading strategy is done by hand. The trader will decide whether to enter the market, put protective stops, or take profitable profits when the indicators generate the signals. As a result, the trader needs to understand the concepts of risk and return and know when to enter and quit based on initial support and resistance zones.

1-2-3. Any Forex currency pair as well as other assets including stocks, commodities, cryptocurrencies, precious metals, oil, gas, etc. can be traded using the pattern trading system. It is most effective on M5, M15, and M30, but you can use it on any time frame that works best for you.

Trading Rules for 1-2-3 Pattern Strategy

When employing this 1-2-3 Pattern Strategy, don’t forget to tighten your stop losses around High Impact News Releases or abstain from trading for at least 15 minutes prior to and following these events.

As usual, effective money management is essential to getting the best results. You need to understand psychology, emotions, and discipline in order to trade profitably. Understanding when to trade and when not to is essential. Steer clear of trading amid negative market conditions, such as low volume or volatility, after significant sessions, exotic currency pairs, wider spread, etc.

• only makes trades in the trend’s direction.
• Price is rising and is above the ultra-indicator Day signal’s white dots.
• Price in a downward trend is below the ultra-indicator Day signal’s orange dots.

Buy Entry

• 123 pattern V6 Blue buy arrow.
• Day signal ultra indicator White dot.
• Day look indicator White bar.
• Day explosion White bar above Yellow line.

Sell Entry

• 123 pattern V6 Orange sell arrow.
• Day signal ultra indicator Orange dot.
• Day look indicator Orange bar.
• Day explosion Orange bar above Yellow line.

Trade Exist

A fixed profit objective can be used to liquidate any positions utilizing this day trading strategy. As an alternative, the profit objective ought to be established by referring to a prior high-low level, resistance, or support. In the event that the system conditions change, you can also manually exit the deal.

• Depending on the time frame, the initial stop loss may be 5–10 pip above or below the signal bar.
• M5 7–12 pips, M15 8–15 pips, and M30 15–25 pips is the profit target.

It is advised to employ a stop loss. Use the prior high/low swing or previous support/resistance as a reference point to set stop loss (SL) below the entry price. It is not recommended to use fixed stop loss values without any reference points.