If you’re an active trader, you know how important it is to have the right tools to analyze the markets and make profitable trades. One of the most popular tools for technical analysis is the breakout scanner, which helps traders identify potential breakouts in the market.
One breakout pattern that many traders look for is the 123 pattern. This pattern consists of three price swings: a high, a low, and another high (or vice versa). When the price breaks above or below the second swing, it’s considered a breakout, and traders may look to enter a trade in the direction of the breakout.
To make it easier for traders to identify this pattern, developers have created the Breakout Scanner 123 Pattern Indicator for the popular MetaTrader 4 (MT4) platform.
In this article, we’ll take a closer look at the Breakout Scanner 123 Pattern Indicator MT4, how it works, and how you can use it to improve your trading.
What is the Breakout Scanner 123 Pattern Indicator MT4?
The Breakout Scanner 123 Pattern Indicator MT4 is a custom indicator for the MetaTrader 4 platform that scans the charts for the 123 pattern and alerts traders when a potential breakout is imminent.
The indicator works by analyzing price action on the chart and looking for the three swings that make up the 123 patterns. When the price breaks above or below the second swing, the indicator will alert the trader with an audible and visual alert.
The Breakout Scanner 123 Pattern Indicator is fully customizable, allowing traders to adjust the sensitivity of the indicator to their trading style and preferences. It’s also compatible with multiple currency pairs and timeframes, making it a versatile tool for traders of all levels.
How to use the Breakout Scanner 123 Pattern Indicator
Using the Breakout Scanner 123 Pattern Indicator MT4 is relatively straightforward. Once you’ve installed the indicator on your MT4 platform, you can add it to your chart by clicking on “Insert” in the top menu and selecting “Indicators” > “Custom” > “Breakout Scanner 123 Pattern”.
Once the indicator is on your chart, you’ll see a series of dots and lines that represent the 123 patterns. The dots represent the highs and lows of the price swings, while the lines connect them.
When the price breaks above or below the second swing, the indicator will alert you with a sound and a popup window. You can then decide whether to enter a trade in the direction of the breakout or wait for further confirmation.
It’s important to note that the Breakout Scanner 123 Pattern Indicator is just a tool and should not be used as the sole basis for your trading decisions. Traders should always use proper risk management and combine multiple indicators and analysis techniques to make informed trading decisions.
Benefits of using the Breakout Scanner 123 Pattern Indicator
There are several benefits to using the Breakout Scanner 123 Pattern Indicator MT4 in your trading:
1. Saves time
Manually scanning the charts for the 123 pattern can be time-consuming, especially if you’re trading multiple currency pairs and timeframes. The Breakout Scanner 123 Pattern Indicator automates this process, allowing you to focus on other aspects of your trading.
2. Improves accuracy
Even experienced traders can miss potential breakouts in the market. The Breakout Scanner 123 Pattern Indicator eliminates this risk by alerting you to potential breakouts as soon as they occur.
3. Customizable
The indicator is fully customizable, allowing you to adjust the sensitivity and other settings to your trading style and preferences.
4. Compatible with multiple currency pairs and timeframes
The Breakout Scanner 123 Pattern Indicator MT4 is compatible with multiple currency pairs and timeframes, making it a versatile tool for traders who trade across different markets and timeframes.
5. Reduces emotion-based trading
Emotion-based trading can lead to poor decision-making and costly mistakes. By using the Breakout Scanner 123 Pattern Indicator, traders can remove emotions from their trading and rely on the objective signals provided by the indicator.
Breakout Scanner 123 Pattern Indicator Settings
Breakout Scanner 123 Pattern Indicator MT4 Free Download
Conclusion
The Breakout Scanner 123 Pattern Indicator MT4 is a powerful tool for traders looking to identify potential breakouts in the market. It saves time, improves accuracy, and reduces emotion-based trading.
While the indicator can be a valuable addition to your trading toolkit, it’s important to remember that no indicator or tool is perfect. Traders should always use proper risk management and combine multiple indicators and analysis techniques to make informed trading decisions.
If you’re interested in using the Breakout Scanner 123 Pattern Indicator in your trading, be sure to test it thoroughly on a demo account before using it with real money. With proper use and risk management, the Breakout Scanner 123 Pattern Indicator MT4 can help you become a more profitable trader.
