1-2-3-4-signal

1-2-3-4-signal is a signal that is triggered in a bottom pivot or a top pivot. A 1-2-3-4 signal in a bottom pivot means that the share price has recorded three lower rates in a row, the lowest price during day 3 is lower than the lowest price on day 2, which is lower than the lowest price during day 1.

A 1-2-3-4 signal in a top pivot means that the share price has recorded three top rates in a row, the highest price during day 3 is higher than the highest price during day 2 which is higher than the highest price during day 1. A stop loss for a 1-2-3-4 signal is placed on the third day, the lowest value for a buy signal and on the third day's highest value for a sell signal.

A buy signal for a 1-2-3-4 signal in a bottom pivot is given the next day if the top level of the 1-2-3-4-signal bar is passed. A sell signal for a 1-2-3-4-signal in a top pivot is given the next day if the lowest level of the 1-2-3-4-signal bar is passed. When you act on 1-2-3-4-signals, decisions are always taken in the direction of the trend. 1-2-3-4-signals is triggered in recoils of the dominant trend.