The trading plan is based on the classic price action 1-2-3 patterns and LevelForecast price levels. Identifying a 1-2-3 pattern with price levels of LevelForecast works great, both in direction trend and reversal trend. It is easy to determine the pattern on the charts, you can find it with any timeframe and with a high degree of probability build a model of further price movement.

Pattern 1-2-3 is the price movement in the range of price levels LevelForecast, according to the following rules:

  1. price movement on an existing trend in the range of price levels LevelForecast
  2. slight rollback of prices within the range of price levels LevelForecast
  3. reverse trend price movement

 

Pattern in an Up trend:

  1. Existing trend
  2. Higher high
  3. Higher Low

Pattern in a Down trend:

  1. Existing trend
  2. Lower Low
  3. Lower High

 

Entry rules to BUY

After the formation of the 1-2-3 pattern and the breakdown of point 2 (green dash line) results in continuation further price movement to the Up direction.
The confirmation of the 1-2-3 pattern comes with the breakout of point-2.
In the range of the nearest price level LevelForecast, set a Buy-Stop order.
Takeprofit set at the next price level LevelForecast according to the Up trend direction.
Set Stop Loss just below the point-3 of the formed pattern. This is necessary to protect your order from unexpected price movements.

Examples of Long setup

 
  • ...
    GPPJPY M30

    Setup to market after confirming the pattern point-2 (green dash line) at the price level of LevelForecast as named M30

  • ...
    EURCHF M30

    Setup to market after confirming the pattern point-2 (green dash line) at the range of price level of LevelForecast as named M30

  • ...
    EURUSD H4

    Setup to market after confirming the pattern point-2 (green dash line) at the price level of LevelForecast as named H1

 

Entry rules to SELL

After the formation of the 1-2-3 pattern and the breakdown of point 2 (red dash line) results in continuation further price movement to the Down direction.
The confirmation of the 1-2-3 pattern comes with the breakout of point-2.
In the range of the nearest price level LevelForecast, set a Sell-Stop order.
Takeprofit set at the next price level LevelForecast according to the Down trend direction.
Set Stop Loss just below the point-3 of the formed pattern. This is necessary to protect your order from unexpected price movements.

Examples of Short setup

 
  • ...
    GPPJPY M30

    Setup to market after confirming the pattern point-2 (red dash line) at the price level of LevelForecast as named M30

  • ...
    EURCHF M30

    Setup to market after confirming the pattern point-2 (red dash line) at the range of price level of LevelForecast as named H1

  • ...
    GBPUSD H1

    Setup to market after confirming the pattern point-2 (red dash line) at the price level of LevelForecast as named H4

 

The Risk Warning

You should consider whether you understand how work technical analysis on financial markets and whether you can afford to take the risk and potential loss. You should not deal in financial instruments unless you understand their nature and the extent of your exposure to risk and potential loss. If you are in any doubt, you may test trading strategy on training account, before entering into to real financial market.


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  • Use on different timeframes and markets (FX, Commodities, Indices, Crypto, Stocks)
  • Automatic build of Price and Time Levels within the predicted range
  • Desktop version for MT4 and MT5 trading platforms.

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Risk Warning: Many financial products as CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
From 69% to 71% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs
work and whether you can afford to take the high risk of losing your money. Your capital can be at risk.