123s Higher Lows and Lower Highs
This pattern can also be a continuation pattern, but at the top or bottom of a trend this pattern provides a good confirmation of the direction change. The "3" point is a failed retest of the previous High or Low. The failure of the test signifies the change from a Bull market to a Bear market and vice versa. The "3" point can also be referred to as a Higher Low or a Lower High. This pattern is very useful for finding a trade entry when there isn't a CI system entry.