Support and resistance are one of the most widely used concepts in trading.

The support and resistance are specific price points on a chart expected to attract the maximum amount of either buying or selling.

The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers.

If a bull market when the price moves up and then pulls back, the highest point reached before it pulled back is now resistance.

Resistance levels indicate where there will be a surplus of sellers.

When the price continues up again, the lowest point reached before it started back is now support.

Support levels indicate where there will be a surplus of buyers.

In this way, resistance and support are continually formed as the price moves up and down over time.

The reverse is true during a downtrend.

1-2-3 pattern is a time-tested tool that is successfully used by traders worldwide. it is one of the major Price Action patterns that helps determine a possible direction of a price by accurately predicting changes in market sentiments at an early stage.

The pattern is a common formation made of 3 key elements that indicate that the trend has changed its direction, trend reversal. also, it may occur at the boundary of a trading range or the end of a trend retracement.