Recognizer 1-2-3 Patterns Indicator
Find out the market trend using the Recognizer 1-2-3 Patterns Indicator with five Fibonacci levels.
Description
The Recognizer 1-2-3 Patterns Indicator for MT5 identifies a three-dot pattern at the end of a trend. The indicator builds a zigzag figure with three points. These points or lines; High/low, entry and Fibonacci. That’s why it’s called the 1-2-3 pattern.
The Fibonacci levels add up to this non-drawable zigzag pattern to create the five Fibonacci levels.
These Fibonacci levels, along with a zigzag pattern of three lines without redrawing, determine the price action. Generally, the indicator is useful for price action strategies due to its ability to illustrate price action trends.
The five Fibonacci levels act as support and resistance so you can take your positions accordingly. You can use the Recognizer 1-2-3 Patterns Indicator on any time frame, but the ideal time frame is between 5 and 30 minutes.
How to trade with the Recognizer 1-2-3 Patterns Indicator?
The Recognizer 1-2-3 Patterns Indicator identifies price action at the end of a trend. With non-recoloring zigzag lines and Fibonacci levels, the indicator gives you entry and exit signals.
When the market is in an uptrend, the indicator displays a green line, indicating buy signals. Conversely, when the market is in a downtrend, this indicator draws a blue line, indicating a sell signal.
The five Fibonacci levels act as support and resistance. The lower Fibonacci level acts as support and the higher level acts as resistance.
When the trend changes its direction, the indicator changes color from green to red or vice versa. So, you can exit the trade. You can also exit the trade when the price action falls below or rises above the line.
1-2-3 Setting up the purchase of a pattern indicator
- The indicator should indicate an uptrend.
- Wait for the trend to fully develop.
- Enter the trade where the indicator begins.
- Place a stop loss near the low of the buy point.
- Exit the trade when the price falls below the line.
1-2-3 Setting up the sell pattern indicator
- The indicator should indicate a downward trend.
- Wait for the trend to fully develop.
- Enter the trade where the indicator begins.
- Place a stop loss near the high of the sell point.
- Exit the trade when the price rises above the line.
Conclusion
The Recognizer 1-2-3 Patterns Indicator identifies entry and exit points and reports price action trends. Fibonacci levels allow the indicator to show support and resistance levels.