Based on our experience, being able to trade a 123 Pattern is one of the best ways to become consistently profitable.
And it’s easy to understand why!
A 123 Pattern is simple to identify and always identical to trade.
For instance, in today’s trade, just by using two of our technical indicators for TradingView, we identify what looks like a very great 123 Pattern.
The technical setup is so clear that we don’t need to add extra indicators and, trust us, this is the best trading strategy.
Because we keep it simple!
For this trade, we use our 123 Trading Strategy, which includes setting a reasonable stop-loss, and to project the first impulse to the upside in order to identify the take-profit level.
Trade setup – 19 Jun 2019
The setup is clear and simple. We have:
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- A higher bottom (displayed by the Bottoms Tops Signal indicator)
- A higher low in the RSI Exhaustion (the RSI Exhaustion supports the upward movement of the price)
- Bearish exhaustion in the RSI Exhaustion (colored red)
The combination of these three situations forms a high probability trade, in which the price is very likely to reach the target.
Right regarding the target, we simply project the previous impulse to the upside so that, the price should make a 1-2-3 continuation pattern.
Trade update – 20 Jun 2019
The price is moving higher and the RSI Exhaustion is moving higher as well.
The fact that it is bullish exhausted (colored green) is not a big deal in this circumstance because the price is moving higher, and we expect it to continue to do so.
In similar situations, the RSI Exhaustion could stay exhausted, and maybe even overbought, for a prolonged period of time and the price just continues to rise.
We are expecting a similar scenario now.
Trade closed – 24 Jun 2019
As expected, the price continued to rise and so did the RSI Exhaustion.
Considering the overall technical outlook, the price might move even higher now.
However, the most important thing is that, by forming a perfect 123 Pattern, the price hit our Trading Target.
We were able to get almost a 6.5x profit, just from this trade.
The best part?
All it took was to recognize the 123 Patter and then execute our 123 Trading Strategy.
Do you usually Trade a 123 Pattern when you see it?
Or maybe you prefer different trading patterns?
Let us know by adding your comment on the YouTube video above!
