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Three Drives

Bitcoin Violent First Pullback from Leg up from LowsExtremely violent price action indicates that we have more downside on the 4H and, on higher timeframes, that there is significant likelihood that the move from the lows was a bull trap. Whether we ultimately move to fill the gap from the short squeeze and/or form an equilibrium pattern, complete an ABC correction from the $9.76k highs, or move to new lows since all time highs, there is still more downside to come on the 4H. A bullish three drives pattern visible on the 15min and significant hidden bullish divergence on the 4H indicate to me that we should form a higher low on the 15min and consolidate between $8.9k-$9.3k for some time (potentially up to $9.4k, but I don't believe the market is bullish enough to get there). Getting to the $9.2k-$9.4k region will likely result in significant lower time frame bearish regular and hidden momentum divergences. Breaking new lows with good volume before this would paint a very bearish picture for higher timeframes. The amounts of Bitfinex Bitcoin longs and shorts are significantly bearish .
BITFINEX:BTCUSDShort
by petermh
1
Three Drives Patternhere are basically three ways that you could enter a trade: Put in a pending order at the last 1.272 level, with a stop loss guess Wait for the market to print a strong rejection bar, like a Pin Bar or Outside Bar, then enter the trade, with a stop loss on the other side of the bar Wait for the market to break through the 1.272 level, then put in a pending order if the market drops below the 1.272 level and use the previous swing high/low as the stop loss. Most resources will tell you to wait for the level to be rejected, then put in a trade (#2). So let's go with that method for now.
Long
by slrocheleau
Three Drives, RSI BAMM, ABCDThe Three Drives Pattern™, Although it was not specifically identified, one of the first references to a Three Drives pattern™ was outlined in Robert Prechter’s book, “Elliot Wave Principle.” He described the general nature of price action that possessed either a three-wave or a five-wave structure. Adapted from this principle, symmetrical price movements that possess identical Fibonacci projections in a 5- wave price structure constitute a Three Drives pattern™. In “The Harmonic Trader,” the patterns importance of other larger retracements and projections improved the accuracy of the pattern in real trading situations. The book was one of the first to emphasize the the critical aspect of this pattern that each drive complete precisely at consecutive harmonic ratios – either a 1.13, 1.27 or a 1.618. Also, the price legs should possess clear symmetry with each drive forming over equivalent time periods.
BITFINEX:ETHUSD
by slrocheleau
AB=CD, Crab, Bearish 5-0, RSI BAMM"The 5-0 pattern®, was discovered by Scott Carney and released in his book, Harmonic Trading of the Financial Markets: Volume Two. Is a unique structure that possesses a precise alignment of Fibonacci ratios to validate the pattern. Although the 5-0 pattern® is considered a retracement pattern, as the 50% retracement is the most critical number within the Potential Reversal Zone, the measurements of the various price legs are slightly different than the Bat pattern™ or the Gartley™. The 5-0 is within the family of 5-point harmonic reversal structures and is primarily defined by the structure’s B point – as is mandatory for all harmonic patterns™. However, the 5-0 pattern® requires a reciprocal AB=CD measurement to define the pattern’s completion. The basic premise of the pattern is to identify distinct reactions following the completion of a contrary trend. Valid 5-0 patterns® typically represent the first pullback of a significant trend reversal. In many instances, the AB leg of the structure is a failed final wave of an extended trend. The 5-0 is an incredibly precise pattern that possesses only two numbers – the 50% retracement of the BC leg and the Reciprocal AB=CD Pattern™ " - Scott Carney
NYSE:WFC
by slrocheleau
Bullish Three Drives / ABCD PatternHow to Identify the Three-Drive The pattern consists of a series of three higher highs or lower lows, which signals a potential reversal. As you can see from the charts above, point A should be the 61.8% retracement of drive 1. Similarly, point B should be the 0.618 retracement of drive 2. Then, drive 2 should be the 1.272 extension of correction A and drive 3 should be the 1.272 extension of correction B. By the time the whole three-drive pattern is complete, that’s when you can pull the trigger on your long or short trade. Typically, when the price reaches point B, you can already set your short or long orders at the 1.272 extension so that you won’t miss out!
Long
by slrocheleau
Three Drives, Shark & RSI BAMM the three drives pattern is a reversal pattern designed to highlight times when the market is exhausted in its current move. … the pattern has a bullish version and a bearish version. … the pattern is composed of three waves or drives that complete at a 127% or 161.8% Fibonacci extension. … the trade is entered in the opposite direction to the overall move, when the third drive is completed at a 127% or 161.8% Fibonacci extension. … the stop loss goes below the 161.8% Fibonacci extension for a buy and above the 161.8% Fibonacci extension for a sell. … draw a new Fibonacci retracement from the start of the pattern to the completion point of the pattern and take profit at the point where price will have retraced 61.8% of that distance. The Shark pattern has the following ratios. AB leg extends OX leg between 113% – 161.8% BC leg extends beyond O by 113% of the OX leg BC leg is also an extension of AX by 161.8% – 224%
OANDA:DE30EURLong
by slrocheleau