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.
