Charting Tools: 1-2-3

Charting a 1-2-3 Formation:
  1. Select the 1-2-3 Tool from the Charting Toolbox.
  2. Position the mouse pointer where you would like to place the #1 point and left click to place.
  3. Move to the #2 point and left click to place.
  4. Move to the #3 point and left click to place.

Moving a 1-2-3 Drawing:

Select the 1-2-3 drawing by clicking on it, drag to the new location and release the mouse button to place.
Note:  The tool is selected when a line appears connecting the 1, 2, and 3.

Deleting a 1-2-3 Drawing:

Select the 1-2-3 drawing by clicking on it and press the Delete Key on your keyboard.

Resizing the 1-2-3 Drawing:
  1. Select the 1-2-3 drawing by clicking on it.  The drawing is selected when boxes appear on the corners.
  2. Click on one of the boxes to drag the select point and release the mouse button.

Changing Properties of a 1-2-3 Drawing:

  1. Right-Click on the drawing to view the properties menu. (see below)
  2. Properties that can be changed are:
    1. Foreground: Changes the line and arc color of the 1-2-3.
    2. Line Thickness: Changes the thickness of the 1-2-3 line.
      Choose values from 1-6.
    3. Line Style: Changes The line style of the 1-2-3 line, which shows when the line is selected.  Choose from solid, dashed, dotted and more.
    4. Arc Thickness: Changes the arcs formed at the 1,2,and 3 points. Choose values from 1-6.
    5. Font: Changes the Font, Size, Style, and Color of the 1,2,and 3.
    6. Show Text: Select to view or hide the 1,2,3.
    7. Send to back: Changes the layer of the tool.  This option is used when more than one tool is in the same area of the chart. Click on Send to back when you need to access a tool under the 1-2-3 drawing.

1-2-3 Top Formation

The 1-2-3 Top Formation anticipates a change in trend from up to down on a break below the number two point.  This formation is easily identified because the number one point is the annual price high.

To trade a Top Formation, place a SELL order on a break down past the #2 point.  Then, place a stop loss order just above the #1 point (Considered to be an industry standard) or just above the #3 point (A more conservative stop loss placement.) See Chart Below.

 

1-2-3 Bottom Formation
The 1-2-3 Bottom Formation anticipates a change in trend from down to up on a break above the number two point.  A 1-2-3 formation is easily identified because the number one point is the annual price low.
 
 

To Trade a Bottom Formation, place a BUY order just above the #2 point, then place your stop loss order just below the #1 point (Considered an industry standard) or just below the #3 point (Considered a more conservative position.) See Chart Below.