The pattern may be found here: https://admiralmarkets.com/analytics/traders-blog/price-action-tricks-how-to-trade-1-2-3-patterns. here yellow arrow will show 1, red arrow will show 2 and blue arrow 3. enter trade when 2 breaks
This is the second time I've read about trading this pattern lately, Im going to give it a shot or two
Maybe ... for some people ... nothing there for me to trade (nor for anyone else I know who trades 1-2-3 formations!).
the problem with 1 2 3 formations (at least for me) there can be some subjectivity involved , what you could identify as 1, 2 , 3 is not necessarily the same for me. I got this 1, 2 3 and ross hook indicator helping me at times (at least least to try make it more objective) , though it doesn't seem to be very accurate (you can tweak the bar counter i think) and if the trend isn't so strong there can be 1,2, 3 lows and highs at the same time, making the decision to trade more obscure.
It depends partly on what you mean by "accurate", but it doesn't strike me that 1-2-3's and RH's are something I'd want an indicator to identify for me ... (just my perspective: I haven't seen these indicators for a few years, admittedly, and there might be something better now). The major issue, it seems to me, is to identify when and whether you want to look for signals and in which direction. My strong suspicion (though I can't prove it, needless to say) is that the people who have lower win-rates with these formations are taking many trades that I wouldn't take, myself. Easy to say, of course, and perhaps not very helpful to anyone, but it is what it is ...
Thank you for posting this 'problem'yep that is the problem with most trading set ups-because there are so many time frames at work [?]. also as Xela said she uses it as reversal pattern. the chart you posted is in a range-this works very well when there is trending or swinging market.i do not think you can use this as stand alone pattern.