Charting Tools
Let's Get Technical
123 Tool
Use the 123 tool to chart both top and bottom formations. To draw a 123 formation, select the 123 tool from your Charting toolbar. Position the mouse pointer over the spot you would like to place the 1 point and click to place. Move to the 2 point and click to place. Move to the 3 point and click to place.
123 Formations - Technical Analysis
The 123 formation anticipates a change in trend. There are both top and bottom formations.
123 Top Formation
The 123 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 1 point is the annual price high for the contract.
To trade a 123 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 (an industry standard) or just above the 3 point (a more conservative stop loss placement).
123 Bottom Formation
The 123 bottom formation anticipates a change in trend from down to up
on a break above the number 2 point. A 123 bottom formation is easily
identified because the number 1 point is the annual price low.
To trade a 123 bottom formation, place a buy order just above the 2 point. Then place a stop loss order just below the 1 point (an industry standard) or just below the 3 point (a more conservative placement).
Resizing the 123 Drawing
Select the 123 drawing by clicking on it. You will know the 123 drawing is selected when boxes appear on the corners. Click on a box and drag it to your desired length. Release the mouse button to place.
Moving the 123 Drawing
Select the 123 drawing by clicking on it. The drawing is selected when boxes appear at the 1, 2, and 3 end points. Drag to the new location and release the mouse button to place.
Deleting the 123 Drawing
Select the 123 drawing by clicking on it. Press the Del (Delete) key on your keyboard. You can also right-click the 123 drawing and select “Delete” from the drop-down menu.
Example of the 123 Top and Bottom
Preferences
Select the 123 drawing by clicking on it. The properties will show up in the preferences section of your control panel.
1. Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.
2.
Line: From here you can choose the color, line style, and line
thickness.
3. Font: Select the font, size, and color of the text. You can also choose to see numbers or letters. Select Text to hide or show your text on the chart.
4. Show Text / Show Arcs / Snap / Show Prediction / Always Show Lines: Select these options to display the 1-2-3 tool the way that you prefer. You can choose to hide or show Text, Arcs, Prediction, and line You can also choose whether you would like the 1-2-3 Tool to snap to price bars.
5. Line Label: Select from different options for your labeling your 123 lines.