Show 123 Pattern Indicator for MT4 – Free-[TFlab]

The Show 123 Indicator MT4 is a technical analysis solution based on the classic 3-2-1 price formation, a pattern widely regarded as a dependable structure for identifying trend reversals and breakout scenarios in financial markets.
Using an algorithm similar to the ZigZag indicator, this tool analyzes recent swing highs and swing lows and automatically labels them as Point 1, Point 2, and Point 3, offering traders a clear and organized representation of market structure.


You can download it from this link:

https://cdn.tradingfinder.com/file/6...4-by-tflab.zip

You can also access the MetaTrader 5 version of this Indicator through this page:

https://www.cryptocraft.com/thread/1...atrader-5-free

For instructions on how to install:

https://www.forexfactory.com/thread/...-in-metatrader

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Show 123 Indicator Overview
The Show 123 Indicator for MetaTrader 4 (MT4) is designed to support traders in anticipating potential directional shifts across multiple asset classes, including Forex, cryptocurrencies, and stocks.
Unlike standard ZigZag indicators that only visualize price fluctuations, the Show 123 Indicator emphasizes a functional price framework, enabling traders to identify high-probability entry and trigger zones with greater precision.

Core Pattern Identification Logic

1. Point 1
   Marks the origin of the current price wave and forms at a significant swing high or swing low.
2. Point 2
   Defines the end of the initial corrective phase and establishes a key structural level that frequently functions as support or resistance.
3. Point 3
   Represents the second corrective movement and acts as a potential confirmation zone for breakouts or reversals.

A confirmed break above or below Point 2 following the completion of Point 3 typically signals a change in market momentum.

Indicator Classification and Application Scope

Indicator Categories

1. Signal & Forecast MT4 Indicators
2. Trading Assist MT4 Indicators
3. Chart & Classic MT4 Indicators

Platform Compatibility

1. MetaTrader 4 (MT4)

Required Skill Level

1. Intermediate

Indicator Function

1. Reversal and Breakout Detection

Timeframe Support

1. Multi-Timeframe Analysis

Trading Style

1. Intraday Trading

Supported Markets

1. Forex
2. Cryptocurrencies
3. Stock Markets

Show 123 Indicator Behavior in an Uptrend
In bullish market conditions, the Show 123 Indicator marks the three structural points in green, highlighting potential continuation or reversal opportunities.

Uptrend Structure Explanation

1. Point 1 forms at a recent market low and initiates the upward price movement.
2. Point 2 appears at the peak of the first corrective phase and acts as temporary resistance.
3. Point 3 develops above Point 1, indicating reduced selling pressure and increasing buyer strength.

A buy signal is validated after a bullish candle closes following the formation of Point 3, suggesting a continuation of the upward trend.

Show 123 Indicator Behavior in a Downtrend
During bearish market conditions, the indicator displays the 1-2-3 pattern in red, allowing traders to identify declining demand and potential trend continuation.

Downtrend Structure Explanation

1. Point 1 forms at a major market high.
2. Point 2 represents the low of the first corrective decline.
3. Point 3 is a temporary upward retracement that remains below Point 1, confirming bearish dominance.

A sell signal is triggered when price action rejects Point 3 and breaks below the established structural level.

Show 123 Indicator Settings in MT4
The indicator includes customizable inputs to adapt to various trading styles and market environments.

Adjustable Parameters

1. MaxBars
   Sets the maximum number of historical candles analyzed by the indicator.
2. Aggression
   Adjusts the sensitivity level for detecting swing points.
3. FontName
   Determines the font style used for chart labeling.
4. FontSize
   Controls the size of numerical point labels.
5. PipTextHeight
   Defines the vertical spacing of displayed text on the chart.

Conclusion
The Show 123 Pattern Indicator is a precision-oriented technical tool that streamlines market structure analysis by clearly identifying critical swing points and breakout levels.

1. In uptrends, a confirmed break above Point 2 following a higher low at Point 3 reflects strengthening bullish momentum.

1. In downtrends, the formation of a lower high and subsequent structural break confirms sustained selling pressure.

By combining clear structural visualization with actionable breakout logic, the Show 123 Indicator remains a valuable resource for traders seeking reliable reversal and continuation signals within the MT4 trading environment.