A 1-2-3-4 reversal chart pattern is build up of 4 definable points, known as point 1, 2 , 3 and 4. A typical 1-2-3-4 chart pattern is best traded after a strong currency pair up - or downtrend and can be defined by an easy set of trading rules. A trader can confirm the reversal trade using a technical indicator such as DMI or MACD.

It is a reversal chart pattern is build up of 4 definable points

The 123 Forex trading strategy is one of the most effective way to trade reversals. It works on anytime frame and on any currency. I prefer patterns like that because it has to do more with the price action so it's not just about using Forex indicators it's about the behavior of the price it self.

Long Position: The rules for long entry are as follows. 1) Wait for new blue-orange lines to appear on your chart. 2) The price has to go above the blue line.