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Three Drives

AUDUSD AB=CD to 3-DriveHere we have a symmetrical AB=CD on the aussie-dollar. You are able to trade ab=cd's on their own, some may go long here. However, i'm not a fan. Due to the set up of this channel, I will wait for the 0.786 retracement, then, rather than waiting for the 3rd drive to complete, I will short the 3rd drive as it reaches the top of the channel. Combining technical analysis with fundamentals: going into next week we are expecting a stronger dollar; tonight aussie exports have been announced and they are slightly higher than expected, rising by 9.4% rather than the forecasted 8.0%. Exports bringing money into the country and adding to the trade balance, this may be enough to strengthen the aussie between now and next week to the extent where it reaches the top of the channel before the short. AB=CD patterns should be as symmetrical as possible- we can see here that both waves equal 52 bars, 2 days and 4 hours exactly. Taking a trend line from A to C, a 0.786 retracement touching the channel would be a marvellous entry. Trading is never as straightforward- I doubt it will hit exactly where i'd like, but i'll roll with it and see where it takes us. My short TP will be in line with point D of the AB=CD, with a stop loss just above the previous high. AB=CD Ratios in addition to symmetry C: 0.618-0.786 D: 1.272-0.618 3-Drive ratios in addition to symmetry Retracements: 0.618-8.272 Extensions: 1.272-1.618
Short
by KyleMcQuade
AUD/CAD - Three DrivesHello traders, here we have AUD/CAD on the daily chart with a potential bearish three drives pattern. I'd like to thank Six Figure Capital student www.tradingview.com for spotting this setup. Price completed the 2nd price drive at the 1.272 extension and we're now completing the 3rd price drive around 1.06000. You will need to pay close attention to price action and candlestick formations in that area for the perfect entry point. The pattern is not as symmetrical as I would like it to be, however, I won't ignore this setup as each point forms at a key level in the market. This is a great trading opportunity with over 1:4 risk to reward. Thank you all for your continued support, don't forget to add me on social media :)
Short
by LewisGlasgow
2
Potential Bearish 3 Drives Pattern on EURUSDHey all! What we can see here is a potential three drives pattern forming on EURUSD. What tipped me off about this particular pair is the fact that the second drive featured a bullish move that hit the 1.272 retracement of the first drive almost perfectly (indicated by the orange arrow). So what we can expect to see is the third drive to hit the 1.272 retracement of the second drive - as per the definition of the 3 drives pattern. I've been expecting this pattern ever since the price hit the 1.09071 mark, and the drop in price from the 27th of March onward has given me more confidence to pursue this potential idea. You can try and catch the third drive up with a very aggressive entry but the structure always has a chance to change on a dime - especially given the dollar's recent unpredictability. The more conservative play would be to wait until the price hits 1.09791 and then signs of a retracement. Another reason to stick to the conservative play would be the fact that the price might even hit the 1.618 retracement (unlikely but not unheard of) and then come down to about the 1.06342 level. Conservative Setup: Entry: 1.09585 TP: 1.05874 SL: 1.09796 Aggressive Setup: Entry: 1.06844 TP: 1.09763 SL: 1.06369 Always take the necessary precautions when trading! Good luck!
Short
by Cohiba93
Potential ABCD Pattern on EURCAD (600+ pips)Hey all! It's been a pretty quiet week so far but I've been patiently watching several pairs to see if any plans become more viable. EURCAD is one of these pairs and I was specifically waiting to for it to show signs of a reversal off of the 0.618 retracement. Now that it has done that, we can predict a potential bearish long-term ABCD pattern forming here - assuming that the D leg goes to completion. If this happens, we can also predict that the price will hit the 1.272 retracement at the 1.47540 mark sometime in late May 2017 then come back down to any of the 3 fib retracement levels (Drawn in red and based on the A-D leg) in Early June. I'm also expecting minor consolidation on both the bullish and bearish drives between the 1.42993 and 1.43491 price levels that may end up determining which target is most likely to be hit. As we've seen in previous ABCD and 3-drive patterns, trading the C-D leg is very risky and I wouldn't really advise it. This is more of a proof of concept should the idea materialize. In any case, we have two plays for both the risky and conservative traders: Aggressive Setup Entry: 1.41698 TP: 1.47586 SL: .1.40672 Conservative Setup Entry: 1.46586 TP: 1.43778, 1.42606, 1.41463 SL: 1.48319
Short
by Cohiba93
EURUSD 5-OHappy Friday, Troops. I haven't been active in a while- I've been working on those 5-o's. They still aren't doing anything for me, I'm a much bigger fan of the Ms and Ws, but here goes. As harmonic swing traders we look at the daily chart for direction and use the 4 hour to find a pattern that fits direction (in a nutshell)- I occasionally look at daily patterns with support and resistance from weekly charts but that's once in a blue moon. If you look at this daily chart there's a ascending wedge; within said wedge we have a 3-drive pattern. I'll be long until the 3-drive is complete. At which point, a bearish 5-o is completing on the daily chart. I'll be looking for a short signal from around 1.095(ish), and entering until the pivot point around 1.06. Again, I'm new to the whole 5-O game, it was suggested to me by a friend- lets see how this plays out!
by KyleMcQuade
1
Three Drives PatternWe have completed a three drives pattern, now we should short looking for 61.8% retracement of the whole move up. We have this pattern accompanied by regular bear div in the last three peaks, and a longer term hidden bear div from ATH. So this should be an easy short. We still have a 2 points trendline to break, and for now we lack the necessary volume to do it, but i guess volume will eventually come. Entry would have been ideally 1230, i personally entered in a new short by this pattern on the broken 4 points trendline (1217), an other possible entry for a safer trade, would be breaking the second trendline (1205) Stop loss new local high (1233) Target 61.8% retracement of the whole pattern (1164)
COINBASE:BTCUSDShort
by bagofXMR
5
EUR/USD - Three DrivesHello traders, following up from my previous post on EUR/USD with a bullish BAMM setup (chart is shown below), price is now forming a bearish three drives pattern on the 4h chart. Price completed the 2nd price drive at 1.23 and we're now beginning the 3rd price drive which I plan to capitalise on. You will need to pay close attention to price action and candlestick formations in the current area for the perfect entry point. A clear break and close below the trendline would indicate a move lower, therefor invalidating the pattern. This is a great trading opportunity with almost 1:4 risk to reward. Thank you all for your continued support, don't forget to add me on social media :)
Long
by LewisGlasgow
60
CHF/JPY - Three DrivesHello traders, this is an early prediction for CHF/JPY which I will update as the trade progresses. Today we have a potential bullish three drives pattern on the 4h chart with several trading opportunities, long and short! Price has now completed the 2nd price drive at 1.44, but it could drop to a maximum of 1.618 therefor altering the entire pattern. I'm going to trade this differently, rather than waiting for the entire pattern to complete I will be going short from the 0.618 or 0.786 retracement level. To back up the price move we have a valid AB=CD within the three drives structure, with a similar amount of price bars although the time completion is slightly off for the C to D leg. As always, trade safe everyone.
Long
by LewisGlasgow