Tag Archives: 3drivespattern

Trade: AERO – A Strong Buying Opportunity

Trade: AERO – A Strong Buying Opportunity

I initially posted this chart on 5th of December on advfn board expecting a retrace to lower 8s or early 7s before prices could start moving to 10p area for the completion of Bat Pattern.

AERO Bat Pattern Buying Opportunity
AERO Bat Pattern Buying Opportunity

However, there was new of placing which caused a minor sell off but the bat pattern formation is still valid. In fact now since B point of BAT pattern has been broken upwards, it becomes a great BAMM style  (read more about it here) buying opportunity.  At the moment AERO is looking a very strong Risk/Reward buying opportunity with several technical reasons (Bat Pattern, 3 Drives Pattern, Harmonic Movements)  to buy.

Snapshot:

This is how AERO is looking now. This can give us approximately 1:4 Risk/Reward Ratio.

AERO - A Good Buying Opportunity
AERO – A Good Buying Opportunity

Reasons For Trade:

  1. 3 Drives Pattern is forming potentially taking price to 10p
  2. Bat Pattern is still forming
  3. BAMM entry available right now.
  4. Price is slightly oversold on lower time frames

Stop Placement:

5.25p

Targets:

9.5p

Trade Execution:

On market

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
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Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
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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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Leave a comment: I would love to hear your thoughts, suggestions on this topic. Please leave a comment.
---------------------------------------------------------------------------------
Disclaimer: This web site is just my financial trading log and is for educational purposes.
Please do your research, analysis and take your decisions. You must not rely on my actions or analysis.
Please see the Disclaimer page.
---------------------------------------------------------------------------------