242# Reversal Pattern Strategy
123 Reversal-Trend Trading
HFT high frequency trading with SR
Submit by Dimitry
Reversal Pattern Strategy is a trading system based on the support and resistance lines draws by the 123 pattern indicator, this feature is very important because I can trades or trend following in the direction of the main trend or reversal.
The function of all the other indicators is to help make the best choice of trading in both trend and reversal.
This template is for trading with binary options or for scalping and day trading.
Time Frame 1 min, 5min, or 15 min.
Currency pairs: majors and minors.
Expiry time 1 min 5 candles, 5 min or 15 min 3 candles.
Metatrader 4 indicators setting
Zig Zag (12,5, 3).
UFX Trend (draws the channel trend ).
123 patterns (the main indicator).
Daily open line.
M5 cash M15 (fast ema 1 period, slow ema 50 periods, RSI 7 periods).
1a green dot timing trend indicator.
Heiken Ashi default setting.
RSI 3TF alerts
Example of trading rule for reversal trading
Wait that forms the support dot line of 123 patterns.
Heiken Ashi green bar,
1a green dot.
M5 cash M15 buy arrow.
RSI 3TF crosses upward.
Initial stop loss on the previous swing low.
Wait that forms the resistance dot line of 123 patterns.
Heiken Ashi red bar,
1a red dot.
M5 cash M15 sell arrow.
RSI 3TF crosses downwward.
Initial stop loss on the previous swing high.
In the pictures Reversal Pattern Strategy in action.
Share your opinion, can help everyone to understand the forex strategy.