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Three Drives

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
NOVOB: Multiple patterns confirming big short opportunityI know most folks on this website are not trading NovoB but it is always nice to see multiple patterns coming together to confirm a trade. So we have a potential CD leg forming on NovoB with a c.-40% downside target to the congestion zone between 180 to 200. What is interesting the completion of a 135 pattern which forms the BC leg of the larger ABCD. Still looking for those longs but this market is not making it easy!
OMXCOP:NOVO_BShort
by WellTrainedMonkey
Make Money Using This Complete Trading Strategy #forexThe Three Drives patterns is one of the most powerful setups: Bullish Three Drives pattern: 1)First wave is a normal bearish wave. 2)Followed by first pullback wave (shouldn't exceed 0.9 of 1st bearish wave). 3)Then Second bearish wave that extends beyond the first bearish wave low and reach between 1.27 and 1.618 Fibonacci extension for the first pullback wave. (Note that if the price drops below 1.618 but doesn't close a candle below it, then it is considered 1.618 extension ). 4)Then followed by a second pullback wave. (shouldn't exceed 0.9 of 2nd bearish wave). 5)Then the most important wave is the third bearish wave, which extends beyond the second bearish wave low. At this point you should be ready to monitor the price from 1.27 to 1.618 extension for the second pullback wave. This area it is called the PRZ(Potential Reversal Zone). Expect an upside rebound at this area. Note: Symmetry increases the reliability of the pattern: If the 2nd bearish wave extends 1.27 for the first pullback wave, expect the third bearish wave to complete also at 1.27 for the 2nd pullback wave. This is the ideal and best case, but note that sometimes we can have different extensions and it will also work. Final step: add a confirmation tool like the hammer candlestick pattern at the PRZ before going long. EXAMPLE ON CHART: Typically, as i mentioned above, the first and second extensions should be somewhere from 1.27 to 1.618. There are some variations which i wont discuss in this post. In this case the price dipped below the 1.27 extension level but failed to close candles below it. At the third wave, the price hit the 1.27 extension and formed a long lower shadow candle, suggesting buying interest and confirm out trade. Entry should be put at the 1.27 extension level following the closing the of confirmation candle. The above are my own personal observations and conclusions. Best Regards, Technician
Education
by Technician
21
Zoomed Outlook On ETHBTC PairFollowup on my last ethbtc pair post. The more I look at the pair, the more I feel I should have posted that last one as Neutral rather than Long. There are conflicting indicators going both directions. There are several really interesting things going on here on the 2D chart. First of all the macro-pitchfork is looking good. We are sitting around the median line, which is neutral territory. There seems to be a bear div on RSI that looks eerily similar to the last top. Most interesting of all is the potential for a three-drive pattern to play out. Traditionally you look for 1.272 fib extensions of each wave down for the next upper target, then a 0.618 fib retrace. But this is crypto, so to hell with traditional guidelines, right? What we've been seeing is ~416.8% extensions on each run up and ~86% retracements. This post is just to give you an idea of the overall trend, still very bullish, but neutral/bearish near-term. Not shown here, but the weekly chart shows weekly RSI bear divs throughout each run up, so perhaps it is a continuation signal with this pair. Last three drive could reach as high as 0.625 by August, 2018. Also I thought was interesting, although this will change over time, is that the "flippening" so to speak, would occur at a price level of 0.1728 eth/btc if the current circulating supplies of each remained constant. *THIS IS NOT TRADING/FINANCIAL ADVICE*
Long
by Manifested
Crude: 3 Drives To $70 By Mid June/July 4th.Disclaimer: In between trades I like to project price for entertainment purposes only. I trade purely on price action - sup/res. After seeing a million charts I like to predict how price will act. Again I never pre-empt price action (wait - that's a lie. I sometimes do and that how I lose on trades). Always wait for the trade to come to you. Patience is key. Let me know what you think? Comment with your charts, thoughts, whatever. $USO $USOIL $XLE
TVC:USOIL
by Market_Masta
2
Three Drive Reversal for ETH in Coming WeeksDespite what people may think, three-drives are actually a reversal pattern. Although this initially looks bearish, and it is, it's safer to trade it upon confirmation. Once completed, three drives indicate exhaustion of a trend, and can be played similarly to most other harmonic patterns. What we look for is three consecutive price swings in the same direction, in this case downwards. Each push down should be a 1.272-1.618 fib extension of the previous rally/correction. Each correction should retrace roughly 61.8% of the previous push down. Here we can see that we are clearly in the range having two falloffs, the last of which meets the requisite 1.47 fib extension. If this were to play out, we would expect a third leg down between $500 and $300. If price reaches this low and finds support it would be a potential buy signal, with the target being 61.8% of the cumulative downward move, putting our sell targets between $950 and $1050. Stop losses could be set below the 1.618 fib extension. I always like to have at least two signals pointing to similar targets, and it just so happened that the daily 200 SMA lines up pretty spot on with our higher, 1.272, fib target. We've also broken below and are currently sitting under the 50 EMA's resistance, a possible indication of bearish continuation in the short-term. We would need to break the 200 EMA support before setting our sites on the 200 SMA/harmonic target. All in all, a pretty safe trade. I encourage you to always do your own due diligence and trade responsibly. *THIS IS NOT TRADING ADVICE*
COINBASE:ETHUSDLong
by Manifested
Predicted Trading Range for 2/26 and Possible 3 Drives FormingPart I: The predicted trading range for tomorrow, Monday, February 26, will be between 25402 and 25000. Market futures say 25411 at this time, but given the lack of news over the weekend it is likely they will return to more realistic levels. Obviously a 400 point swing is highly unlikey, but given the volatlily that the Dow has experience as of late, this type of swing is within the realm of possibilty. The range is made up of two trend lines and a support level. The upper trend line dates back to November, when it initially emerged as a support and stayed that way until the events of early February. Now it is holding the market back and providing the perfect cushion for the three drives pattern we could see forming this week. The second trend line is relatively weaker. It is a short trend line whereas the previous example is dates back months. I would be surprised if the market hits this line tomorrow, expect a quick jump to the long run trend line in the morning and a slow retreat towards the market open price throughout the day. Finally, there is a support/resistance line that first appeared in January at 25320, just below where the market futures are tonight. If we have a full day open to close above this line, we could see an avoidance of the three drives pattern I have illustrated on this graph. As a note, the candlesticks may only be 4 hours long but given where we are in the economic cycle this month could pave the way for the next year. Part II: Partial three drives pattern initiated, possible completion of the bearish pattern over the next week. As we can see, the first triangle of a bearish three drives pattern has been nearly completed. If tomorrow we have contact with the resistance trend line, and the inititation of a retracement, expect a bearish three drives pattern to be fully engaged. If so, this could be the C wave in the current DJIA Elliot Wave cycle. \ I'm nuetral heading into this week, but anticipate on picking up a bearish position if these two predictions begin to develop. As always I love to hear feedback and any questions or comments.
DJ:DJIShort
by scotch321