Description
The PZ 123 Pattern Indicator is a reliable and easy-to-use technical tool for MetaTrader that detects 123 chart patterns in real time. The 123 pattern is formed by three price points: a swing low or high (point 1), a retracement (point 2), and a second swing near the original point (point 3), with the retracement typically falling between 38.2% and 71.8% of the original move. These patterns are widely known for their flexibility and can appear as either reversal or continuation formations depending on market context.
The indicator confirms each pattern with a breakout beyond the second swing point and then issues a clear trading signal. Once a breakout occurs, the indicator plots an arrow, triggers alerts, and displays calculated stop-loss and take-profit levels based on the height of the formation.
This tool is designed for traders looking to identify actionable breakout opportunities with minimal configuration. It is non-repainting and non-backpainting, making it highly reliable for both trend-following and reversal strategies. Customization is extensive: traders can adjust pattern size, retracement depth, pattern type, and more.
Key Features
- Detects reversal and continuation 123 patterns
- Filters retracement depth using customizable Fibonacci ratios
- Signals confirmed breakouts with arrows and alerts
- Displays stop-loss and take-profit levels based on pattern size
- Includes a performance dashboard with historical signal statistics
- Fully customizable drawing and alert options
- Works on all timeframes and instruments
- Non-repainting and non-backpainting
Technical Details
- Evaluated once per bar (not tick-based)
- Breakout arrows are drawn only after confirmation
- Pattern scanning uses swing logic with configurable spacing
- Multiple instances can be loaded with different amplitudes
- Signals are complemented by visual and audio alerts
Input Parameters
- Amplitude – The minimum number of bars between swing points 1, 2, and 3. Larger values detect broader patterns; smaller values detect shorter, more frequent patterns.
- Min. Retracement – Minimum Fibonacci retracement for the 123 setup. Ensures patterns have enough depth to be valid. Set to 0 to disable this filter.
- Max. Retracement – Maximum Fibonacci retracement allowed in a valid pattern. Set to 0 to disable this filter.
- Pattern Type – Choose whether the indicator should detect reversal patterns, continuation patterns, or both.
- Max History Bars – Number of historical bars to analyze when the indicator loads. Reducing this value speeds up load time.
- Display Stats – Enables or disables the on-screen performance statistics showing signal accuracy and count.
- Display SL/TP Levels – Show or hide automatically calculated stop-loss and take-profit levels on the chart.
- Drawing Options – Customize line and label appearance for bullish and bearish patterns, including color, thickness, and font size.
- Breakouts – Visual style settings for the breakout arrows: color, size, and width.
- Alerts – Enable or disable alert notifications. Options include screen pop-ups, sound, email, and push notifications.
Disclaimer
This indicator is a tool for technical analysis only and is designed to assist in chart interpretation. It does not constitute financial advice, investment recommendation, or any guarantee of results. Trading involves a high risk of loss and can result in the loss of your entire capital. Use this indicator at your own risk and only with money you can afford to lose. For complete details, please read our Terms and Conditions.
