Posté le: Ven 24 Juin - 19:45 (2011) Sujet du message: bullish Three-Drive Pattern
The bullish Three-Drive Pattern three “drives” to a market bottom
What is it?
Suggests a potential reversal of a bearish market
One of the rare patterns where price and time symmetry are key
Once you know what to look for, this pattern may be easily identified or “jump out” at you
Formed by three consecutive symmetrical valleys
Contains two connecting (intertwined) bullish ABCD patterns
Also contains a bullish butterfly pattern (completing at the third drive)
Why is it important?
Suggests the culmination (exhaustion) of a bearish market where a more significant correction may occur
May offer an excellent risk-to-reward ratio
Pattern failure suggests a potentially strong bearish continuation may be in progress
Sounds good... So how do I find it? First, it’s important to remember not to force a three-drive pattern. Price and time symmetry are key, so the pattern should really stand out as three distinct, symmetrical drives to a bottom. Traders should also remember that the three-drive is far less common than a butterfly or Gartley (especially on longer timeframes).
The bullish Three-Drive Pattern Rules
Symmetry is the key to this pattern
Drives 2 and 3 should be 127.2% or 161.8% extensions of the A and C retracements
The A and C retracements will typically be 61.8% or 78.6% of the previous swing
In strongly trending markets, these retracements may be 38.2% or 50%
The times of the A and C retracements should be symmetrical. The same is true for extensions (second and third drives to the bottom)
A large price gap at anytime may be a sign that the pattern is wrong. Traders should wait for further confirmation that a bottom is in progress
Example 1: GBP/JPY, 2 min
Source: GFT _________________ time is money and money is time