Cryptocurrency Q&A
What is the 123 pattern in stocks?
What is the 123 pattern in stocks?
InfinityRider
Thu Sep 12 2024
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7 answers
1629
Excuse me, could you please elaborate on the concept of the 123 pattern in stocks? I'm curious to understand how this technical analysis tool is used to identify potential trading opportunities. Specifically, what are the key elements that make up this pattern, and how does it indicate a potential reversal or continuation of a trend? Additionally, are there any specific market conditions or indicators that are often associated with the formation of a 123 pattern? I'd appreciate any insights you could provide.
7 answers
ethan_lewis_journalist
Sat Sep 14 2024
The fourth column indicates when the price retests the low established in the third column but fails to break lower, signaling a potential reversal. This is where traders look for signs of strength, such as increased buying pressure.
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Valentina
Sat Sep 14 2024
The 123 bullish pullback pattern is a technical analysis tool utilized by traders in the cryptocurrency market. This strategy aims to pinpoint a specific type of pullback, where the asset's price experiences three distinct swing moves.
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EtherWhale
Sat Sep 14 2024
The pattern is structured in a five-column format, providing a clear visual representation of the price action. It enables traders to identify when the retracement, or temporary decline in price, falls below the bullish breakout level.
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CryptoWanderer
Sat Sep 14 2024
In the context of bullish market conditions, a breakout occurs when the asset's price surpasses a key resistance level, indicating a potential uptrend. The 123 pattern focuses on the subsequent pullback, which often precedes a continuation of the uptrend.
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BusanBeautyBloomingStarShine
Sat Sep 14 2024
The first column of the pattern represents the initial swing move, where the price starts to rise. The second column marks the peak of this move, followed by a pullback or decline in the third column.
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