3 Drives Pattern To Drive Trading Profits

3 Drives Pattern To Drive Trading Profits

3 Drives pattern is a Harmonic Trading Pattern which is highly profitable and predictable. It however requires patience to wait for it complete. It is not a very common pattern as the formation of this pattern requires the price action to go up and down in opposite directions and hence it can be confusing too. Combines with other trading tools it can be very powerful.

A Three Drive Pattern as the name suggests has 3 main legs. The pattern itself is a 5 leg pattern. It can also be thought of combination of two ABCD patterns.

3 Drives Pattern
3 Drives Pattern

It starts at a certain point and an initial AB leg is completed. Then a retracement follows between 61.8 and 78.6 Fibonacci levels to form BC leg. Price action then creates another leg  CD (ideally equal to AB leg or 127.2 Fibonacci extension of AB leg). This complete the first ABCD pattern. Once this ABCD pattern is complete the price action is expected to reverse and go in the direction of point C. If the price action does not close above C and start retracing towards point D again creating another equal or 127.2 Fibonacci Extension, we have a 3 Drive Pattern forming.  Then in order to correctly identify it, we mark new abcd pattern starting with point C of first ABCD pattern and wait for secondary abcd pattern to complete. Between point A and point d we have 5 legs which first condition of a 3 Drives Pattern. Legs BC, CD, cd form 3 impulse legs which makes it a 3 Drives pattern.

At the completion of of point “d”, we expect market to reverse and at least heights of c point. In a string trend, price action can go up to point C and A too.

 3 Drives Pattern Bullish

3 Drives Pattern Bullish
3 Drives Pattern Bearish
3 Drives Pattern Bearish

-Happy Trading

TradeYodha

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