The 123 pattern reversal trading strategy begins by identifying three main points. For example, in an uptrend, when the market hits a new high, label that point as 1. We then wait for the price to pull back to a short-term support area. This point is labelled as 2. Finally, when the price moves up to an area between points 2 and 3, we label this as point number 3.
When price comes back down we trade a put option as it goes past level 2.
Read: Ultimate Guide To Trading Synthetic Indices
Choose the expiry equal to the time frame in which you spot the reversal.
See more binary options strategies here.
Other Posts You May Be Interested In
How To Easily Register As A Deriv Payment Agent (2021)
Comprehensive Guide To Online Forex Trading In South Africa
How To Trade Without Verifying Your Account: Quick & Easy Ways
Other Posts You May Be Interested In
HFM Cent Account Review: A Comprehensive Guide ✅ 2024
Overall, HFM cent accounts are a good option for beginner traders who want to start [...]
Read MoreXM Broker Review 🔍: Features, Pros & Cons Revealed (2024)
Our team of trading experts put XM forex broker to the test and in this [...]
Read MoreThe Best Forex 🎮 Demo Contest Brokers For South Africans
What Is A Forex Demo Contest? A forex demo contest is a competition that is [...]
Read MoreFBS Review: South African Edition (2024) 🔎
Our FBS broker review takes a closer look at the features, benefits, and drawbacks of [...]
2 Comments
Read MoreLearn The Effective 123 Pattern Reversal Trading Strategy
The 123 pattern reversal trading strategy begins by identifying three main points. For example, in [...]
Read MoreHow To Get $30 XM No Deposit Bonus Today 🎁
The XM no deposit bonus of up to $30 (R480) for new clients allows you [...]
Read More