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Three Drives

Trading With the Three Drives PatternHarmonic patterns are known for their ability to provide effective trade setups. The Three Drives pattern is no different, and in this FXOpen article, we’ll delve into what this pattern is, how to identify it, and explore some of the best strategies for trading it. Introduction to the Three Drives The Three Drives pattern, sometimes referred to as the 3 Drives pattern, is a technical analysis tool used to identify potential reversal points in price movements. Traders look for three consecutive, symmetrical bullish or bearish legs, known as drives, with the third point marking the completion of the formation. The Three Drives is classified as a harmonic pattern and is closely related to the ABCD pattern. However, whereas the ABCD is made up of two legs and one pullback, the Three Drives consists of three legs and two pullbacks. As a result, it can be slightly trickier to find than the regular ABCD chart formation. Still, many traders consider it to have a higher degree of accuracy when predicting trend reversals, so it’s worth learning how to recognise this pattern. Identifying the Three Drives At its most basic, the pattern is identified by a series of higher highs and higher lows (bearish) or lower highs and lower lows (bullish). Specifically, it features three consecutive, symmetrical drives and two retracements. The drives are typically marked 1, 2, and 3, and the retracements are noted as A and B. Like other harmonic patterns, the Three Drives is confirmed using Fibonacci ratios. Thankfully, its rules are fairly simple. They are: - A retraces drive 1 by 61.8% or 78.6% - B retraces drive 2 by 61.8% or 78.6% - Drive 2 is a 127.2% to 161.8% extension of retracement A - Drive 3 is a 127.2% to 161.8% extension of retracement B Additionally, for best results, the pattern calls for the time each drive takes to form to be roughly the same. This also applies to the corrective phases. As with many harmonics, being flexible with the rules may help you distinguish more opportunities. Often, the Three Drives will work without perfect symmetry or the ratios lining up exactly. That’s not to say you shouldn’t aim for it to meet the rules as precisely as possible, but you can allow a bit of leeway if the overall formation looks correct. If you want to try your hand at finding the Three Drives, you can use the TickTrader platform. It’s free to use, and you’ll find built-in Three Drives and Fibonacci retracement tools that’ll help you plot the formation, just like we’ve used in the bearish Three Drives forex example above. Using the Three Drives Pattern for Trading Once you have identified the pattern, it’s time to put it into action. Note that these steps don’t just apply to forex trading; you can use them with whatever asset you prefer to trade. Entries You have two options for making an entry here: with a market order or a limit order. Some traders set a limit order at the 127.2% or 161.8% extension of B, where the third drive is expected to begin reversing. However, while this strategy may result in pinpoint entries, it also makes setting stop losses difficult, as you’re entering before the price has started to reverse. Waiting for price action confirmation might make setting stops much easier but can result in a worse risk/reward ratio. You could try waiting for signs of reversal with candlestick patterns like shooting stars, hammers, or engulfing candles before entering with a market order. Stop Loss If you choose to wait for confirmation, you can just set your stop above the highest point for a bearish Three Drives or beneath the lowest point for a bullish setup. If you’re using a limit order at 161.8%, you could try setting a stop beyond the 170% or 175% extension of B, which would invalidate the setup. You could do something similar if entering at 127.2%. Take Profits Your profit target here is quite flexible. You could choose to exit at a specific risk/reward ratio, like 1:2 or 1:3. Some look to take profit at the 61.8% retracement of the whole pattern, i.e., using the Fibonacci retracement tool from the start of the first drive and the end of the third drive. Alternatively, you could also use the Fibonacci extension tool to find the 127.2% or 161.8% extensions of the entire formation and set a profit target at either level. Bullish Example Here, we can see the roughly symmetrical 3 Drives pattern in the forex market that prompted a significant reversal. Following the massive engulfing candle, a market order would’ve gotten traders into a decent trade. Bearish Example In this example, we see a much larger pattern. While the final drive ended up slightly beyond the 161.8% area, the symmetry and almost perfect retracements to the 61.8% levels indicate that the pattern was likely to play out as expected. Traders could’ve entered at the projected 161.8% extension of the second retracement with a stop above the 170% level to secure an excellent risk/reward ratio. Your Next Steps By now, you should have an understanding of the Three Drives pattern and how to recognise it. If you’re wondering what to do next, you can try following these steps: 1. Practice identifying the formation on historical charts. You can use TickTrader to help with this. 2. Once you become more familiar with the pattern, start formulating a strategy. You could try backtesting a few setups to see how well your system works. 3. You can open an FXOpen account and test your strategy in live markets to refine your approach. 4. Read up on related topics, like harmonic patterns and Fibonacci retracements, to expand your knowledge. These four steps may put you in good stead when it comes to trading the Three Drives chart formation for real. Happy trading! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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Education
by FXOpen
6
CRYPTO- Patterns & patterns. ALGORAND.BINANCE:ALGOUSDT In this post I take a look at some of the patterns I trade and how often they show up. This is a30min chart over the last couple of weeks of ALGORAND. Firstly is a 3 DRIVE into the high. This pattern often occurs at highs or at lows and normally has an ABCD pattern with it. Next we have the 135 pattern which occurs when leaving a high or a low. After that we have the AB=CD Pattern. Now we are completing a Gartley and Butterfly pattern coming in at mulitiple Fibonacci levels. This is just a look at the patterns I use and how often they occur. I hope this helps. Enjoy the day. 👍👍
Education
by L_F
Risk/Reward trade setups are more important than Win RateIf you told somebody new to trading that markets can only go in one of two directions, it would be natural for them to conclude that even a beginner could be right half the time. That’s not the reality because traders don’t make a binary up/down calls on their outright positions. What traders do is say, “I think it’s going to go up to point x (target) and in the process NOT hit point y (stop).” Markets do only go up and down, but the trades we place aren’t a binary call. Our target is “where we think the market will go” and our stop should be “I’m wrong if it hits this point.” It's not a binary decision, it is a decision on the direction and the amount of 'wiggle room' it needs on the way. Don’t Be Fooled by Trading Strategy Win Rate When novice traders come to the markets for the first time, they are bombarded with ads for magical trading systems offering extremely high win rates. It plays on the logical (but false) assumption that a higher win rate is always better. It ignores the cost of the higher win rate, what did we do to achieve it? For example, it's unlikely the S&P 500 Futures will ever hit 0.00, so you could go long S&P 500 over and over and have a 100%-win rate. In the process, you will no doubt sit in trades for extended periods with massive drawdowns. In the event of a market correction, you could quickly draw down $40-$50k per futures contract and sit in for years waiting for a recovery. A high win rate alone is not a measure of success. Should it be a goal? Not in absolute terms. Instead, a trader should chase a decent win rate relative to the break-even point of any specific opportunity. How Traders Think About Risk Reward Let's say you have an opportunity where you believe a price in the market is a key trading level. You think the market will rally higher from current prices 40 ticks. You enter the trade with a 10-tick stop. You risk 10 to make 40. Can you do this and be right every single time? Probably not but you could be right 50% of the time and make great money. This is where confusion creeps in. People associate a 50%-win rate with no edge, with a coin toss. In this example, our win rate is way above the break-even rate for this setup, and so 50% is excellent. It represents an edge. If you combine this with more active trade management, such as scaling into positions that go your way, you change the equation again. Your losers might be 2 lots but your winners 8 lots. This is of course what a lot of 'outright' proprietary day traders are doing — looking for an opportunity with a low break-even point, where they can beat the odds. They don’t care if the actual win rate is 40,50 or 60%. It doesn’t matter. Trading Strategy Win Rate and Run of Losing Trades One other important consideration is the ability to survive the inevitable run of losing trades. Let's say you use an artificially large stop to help achieve a 90%-win rate - an 8 tick stop and a 2-tick target. The moment your win rate dips below 80%, you will start to lose. Take 5 or 6 losers in a row, and you are looking at a drawn down account and the NEED to maintain a high win rate to stop the bleeding. Keep on down that road and the next thing you know they'll be calling you "the new Nick Leeson". Trader Takeaway The ability to exceed the break-even rate is where profits lie. Focusing on trading strategies with a low break-even rate will help you thrive and survive as a trader. BINANCE:BTCUSD 👍
BINANCE:BTCUSDEducation
by AdamsLibrary
BTC - Harmonic Patterns pt.1 'THREE DRIVES PATTERN' (beginners)You may be wondering why you keep losing money in the markets. Well, we've all been there - more often than we wished for. But we asked for it every single time. So, why is that? After years of repeatedly or constantly losing money, I know very well what I've been doing wrong for so long. I came to the conclusion that I - and most people I observed or know in person - keep losing money because of several factors, one of which I will elaborate in this sheet: The absence of a system Many people, who are new to the world of trading and investing, especially those who have suffered (severe) losses in the past, are drifting around, clueless, and are seeking for a helping hand that is supposed to guide them around in the world of making and losing money. That state of helplessness and the general accessability of the internet and social media is the perfect playground for fraud. Since there has been a wave of fake (marketing) gurus all over the internet for quite a while, that many fell victim to, the term 'system' is now broadly misunderstood and causes fear among those who were scammed by 'THE MAGIC AND ALWAYS WORKING SYSTEM'. Usually 'gurus' on the internet charge money for providing a system or pretending to educate people about how to 'REALLY' make money. So what is a system? Before finally adopting or developing a system, one must know what a system is defined by, and what criteria a system has to meet. So what does a system do? A system is supposed to allow one to evaluate more or less reliable entry points/levels. But what does that mean? It means that you don't want to participate in EVERY major move the markets offer you to be part of. In fact a system will focuse on a very specific kind of moves, and you are only supposed to trade/invest according to the potential entry that the system you use provided. You will most likely miss out on many moves, and you will think about the amounts of money you could have made if you had just been part of that one major move that you can't stop thinking about. That thought-process is self destructive though, and will lead to suffering even more losses because most people force themselves to not miss out on the next move, in order to finally be part of the wave that makes the real money. But what defines a proper system? How do you know it works? Well, there is only one way to find out. One who sticks to a system - or several - would only want to take the entries the system provides for them, regardless of what happens outside of their system's frame. And yes, that means missing out on many, many, and many more major moves. However, atually making money by applying a system leads to 'strategy building', which focuses on, or consists of 'money management' and 'risk management'. That is a whole other topic though, which I am looking forward to explaining in further educational posts, but not in this one. A system is supposed to allow you to evaluate ONE specific entry, according to specific conditions that have to be met. In order to allow you to pick up on what I'm trying to say I have prepared a very simple example of a system (also referred to as 'technique'). Since many people wanted to be part of the crypto-spikes that we have recently seen, and bought coins at all time highs, I decided to demonstrate several harmonic techniques on the BTC chart. First of all: Where are we? Where is the example taking place? For having a better idea about the scale and location I added this snapshot of the BTC chart in the daily timeframe: (ALL FOLLOWING SNAPSHOTS WERE TAKEN IN 13H TMF) A system, or technique, may be very simple. The strategy your system will be part of will be more complex. But the system itself may surprisingly be very simplistic. For instance: I have been trading with the use of 'harmonics' for a very long time. I focused on TWO different types of harmonic patterns. 1) AB=CD patterns (ABCD) 2) Three Drives patterns In this case, you could make use of the examples I will provide in a second in two different ways, since they'd have given away a short signal on BTC at the ATH. 1) actually shorting BTC, which isn't a very popular method, since not many brokers offer the ability to short sell crypto currencies, and if they do, it often is very expensive to execute. However, some still do it, and this would've been a perfect entry for a short order. 2) interpreting it as a warning signal to either a) getting out of BTC or to b) not buying more coins. I'll introduce the 'Three Drives pattern' in this post, because it was a very clean, textbook-like pattern in this specific case: So, this is the pattern I have spotted that the BTC ATH (all time high) consists of/portrays. As I have mentioned several times already, a system shall provide an entry. So, only if the requirements are met, you are allowed to make a trade. Since some of you may be unaware of what a three drives pattern is, and how to trade it, i will break it down for you: A three drives pattern is a series of lower lows or higher highs which occur in a very specific relation to each other and usually indicate the market may turn around after completing the pattern. It focuses on analysing the time/price relation between said highs or lows. In detail: It consists of three drives, as the name gives away, which may be a series of three consecutive higher highs, or lower lows: bearish: bullish: each drive is interconnected with a corrective move, the corrective moves will play a very decisive role in determining the entry. bearish: bullish: The numbers (1.27) that the three drives pattern, that Tradingview offers, already includes, measure the price excess of the correction move in relation to the next high. In order for the trade to be executed the price excess must either be 1.27 or 1.618 (1.62 approx.). If you're uncomfortable with the three drives drawing tool you could simply measure it by yourself using a fibonacci retracement featuring the 1.27 and 1.618 extensions and apply it on the corrective moves of the three drives pattern, just like this: The following drive should then bounce off the 1.27 or 1.618 extension. You must apply the Fib rectracement on the second correction wave too. The end of the 3rd drive, which should bounce off the 1.27 or 1.618 extension too would then initiate the trade. You would SIMPLY (according to this system) make a trade. All that you have to do is to find a system that has proven to work out to a certain degree in the past (always do never ending backtesting), implement it in your strategy (risk-, and money management) and strictly take the entries that your system provides for you. A system is supposed to give you the confidence you need to blindly execute it according to its rules and requirements. The only way to gain said confidence is to a significant amount of backtesting over and over again, and literally studying the system. A trade that you are afraid of to take, for whatever reason, can still be interpreted as a strong signal to close your current positions, as in the case of this BTC example. Not many people would dare to simply short BTC on the ATH, but relatively many people would probably start takeing profits or selling their coins if they spotted a short entry - according to whatever system(s) they may use. There is not THE perfect system out there. Find a system you can apply confidently and implement it in your strategy. Now, the remaining question is where to take profits once you're in. The Three Drives pattern offers several take profit levels. There may be other ways to successfully take profits, but this is the way that has proven to be the most profitable one for me: I usually simply attach a FIB retracement to the end of the first correction move and to the end of the 3rd drive , and I take partial profits at each of these marked levels. (0.382; 0.5; 0.618; 1.0; 1.27; 1.618). Back to the REAL example: the entry: the take profits: While there are many ways to apply or trade the Three Drives pattern, and some focuse on the retracements in specific, while I focuse on the extensions of the correction moves only. I don't pay much attention to the retracement level of the correction moves because there simply isn't a reliable retracement level. Some fall back to 0.382 while others retrace as far as 0.618 or 0.786. The issue with trading and investing is, that one's ANALYSIS is one thing, but actually initiating a trade, spotting the chance of making money in time and not hesitating to take action is a whole other thing. The only way to act with confidence when the time has come and to actually making the trade is to apply a system that has PROVEN to work. If you don't have a system you won't have the guts to take the chance for a good trade because you burned your hands in the past. Focuse on the entry. Not on where prices may go in the future. If you got your entry right, you can take profits wherever you want to. An analysis doesn't make money. The trade does. The market may do whatever, no one knows what tomorrow will bring, so focuse on the only thing you can influence: The entry and the risk that comes with it. And take profits. Especially in these times. Whatever it is that you do, may it be automated or manual trading, the only way to prove a system is working, is to backtest it. Over and over again, on hundreds or thousands of examples. Thank you for taking the time to reading this rather complex and long article. Cheers ;)
COINBASE:BTCUSDEducation
by AlphaTradingGermany
2
Three Drives Harmonic Chart PatternThe three drivers chart pattern is a well known harmonic chart pattern that acts as a trend reversal. The pattern consists of either three higher highs or lower lows which is an indication of a potential trend reversal. There are two different types of three drives pattern: Bullish Bearish Bullish Three Drives Pattern There are three different waves in the pattern as the name suggests, three drives. With the subsequent drives, there are lower lows that are being formulated in the pattern with three different bottoms. Once the third wave is completed and the low point has been observed, a buy signal can be created with formulating the Fibonacci levels and generating the buy signal with a Fibonacci extension of 1.27 or 1.628. For the stop-loss and take profit levels, you can formulate a new Fibonacci level with the start and end of the pattern and keep 161.8% as the stop-loss level and 61.8% as the take profit level. The important point that confirms the drives is a similar time period between the uptrend after the 1st wave and 2nd wave also a similar time period between the 2nd wane and 3rd wave for the downtrend. The bearish three drives pattern is completely opposite of the bullish three dives pattern and can be spotted in a similar manner. The three drives pattern belongs to the family of harmonic patterns and thus makes use of not just chart patterns but also technical retracement levels to validate the pattern. A three-drive pattern that does not meet the retracement criteria can be discarded. The pattern is therefore qualitative as well as quantitative in nature. ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
5
EDUCATION + WORK Harmonious pattern ABCD + "Three movements" BATI wrote a series of articles on harmonious patterns. On the coin, which I trade from time to time for about two years, a harmonious ABCD pattern is now formed. I decided to publish the information here on the site. I combined a teaching idea with a trading one. Immediately I showed the options for working on a coin, so as not to spam trading ideas and spend time on it. Below I will describe in detail. First, on working on the tool, and then below I will give a little training material. I’ll cut the text as much as possible, as I understand that people don’t want to read a lot of text, for some people this is an overwhelming task)))). On the chart itself, I showed potential movements depending on the retention / breakout of local support / resistance levels. ______________________________ 1 work option. The price has almost reached point D, which could become a potential pivot point in this local movement. ABCD is nothing more than part of the movement in the channel. Channel width 100%. Therefore, in case of confirmation of point D and a price reversal, the potential first profit is + 100%. If this happens, then the ABCD pattern is reorganized into a harmonious pattern of "Three movements." I have shown the areas of potential reversal and observation on this chart. 2 option work. A variant of work if the ABCD pattern is not confirmed and point D does not become a price reversal zone. The formation of a triple bottom. Pivoting bullish shape. The downward stopping zone I showed on the chart. I doubt that it will be pierced, how this will ruin the canvas for the work of the "artist" in the future. To an important zone of resistance and confirmation of this figure + 100% Full working out of the figure triple bottom + 300%. Option 3 (unlikely) If the price breaks through the support zone (green area) and is fixed in a downward movement below it. Then you should forget about trading this cryptocurrency and "turn gray on the fence" until a good entry point appears. But even in such a situation, when they will do a "trick", you can partially take the movement + 40%. Note that in any movement options with the correct entry points (reversal zones), the risk is minimal, the profit is maximum, both locally in movements, and is possible when the trend develops and in the global one. ____________________________________ The previous trading idea for this coin in this pair, which gave + 40%. Actually now, as in the global price forms a symmetrical triangle , this downward movement is nothing more than a pullback after breaking the triangle up. The result after a while + 40%. The same coin is only a trade for bitcoin . BAT / BTC Fractal 2019. History repeats itself. Potential + 180% And the result is + 40% and now rollback. Notice, everything goes according to the fractal plan. ___________________________________________________________________________ LEARNING MATERIAL on the theme of harmonious patterns ABCD and "Three movements". 1) ABCD pattern . This is the simplest version of a harmonious pattern. Nevertheless, the figure is an important brick on the way to understanding the principles of constructing harmonic figures and, moreover, is part of most of them. ABCD is a reversal pattern foreshadowing a change in market trends. That is, the figure helps to predict when the price ends the growth and prepares to fall, or vice versa, completes the fall and prepares for growth. A key feature of the pattern is the symmetry of the AB and CD knees. The figure begins with a rise or fall in price on the segment AB. The BC segment is usually a sharp correction, the size of which should fit in 38.2% - 88.6% of AB. Ideally, the size of the correction should be from 61.8% to 78.6%. At point C, the price reverses and continues to move parallel to segment AB. In this case, point D should be in the range of 113% - 261.8% of the knee BC . The main rule is to observe the symmetry of the pattern. Ideally, the length of the elbow CD should be fully consistent with the length AB. That is, it means matching both in time and in price. Rules for trading a pattern: 1) The length AB should correspond to the length of the CD. 2) The time it took for the price to go from point A to B should be similar to the time from C to D. This harmonious ABCD pattern has two varieties: 1) Bearish pattern . 2) Bullish pattern . Bearish ABCD pattern gives a sell signal. Bullish pattern ABCD gives a buy signal. TNT / USD 1 day. Harmonious bearish pattern ABCD . ETH / USD 1 day. Harmonious bullish ABCD pattern. In real trading on the market, there are a variety of variations of this pattern. But, it’s a good rule to observe the corresponding sizes of AB and CD corrections, since it is much more difficult to trade an asymmetric pattern. Asymmetric, incomprehensible patterns are better to skip. If I trade such formations, then without a Fibonacci grid, I do not need it. I already see what she has to show. In most cases, this is a working analysis tool and at the beginning of your analysis you should use a Fibonacci grid. In trading these formations, I use strong support / resistance levels, the symmetry of this formation and healthy logic in the calculations. Tradingview has a template for this harmonious ABCD pattern and the "three movements" pattern. This simplifies the work and makes it possible to quickly search for this formation on the chart. ______________________________________ 2) Model of the pattern "Three movements". The Three Movement model is a fairly well-known pattern. Its analogues can be found in wave analysis (diagonal triangle) and the book of Linda Raschke (three Indians). It is very reminiscent of ABCD , as if a continuation of this formation. This is a price movement in an upward or downward channel . In the framework of harmonious trading, we consider this model taking into account the Fibonacci ratios. In the classic version of the "Three Movements" pattern, it is provided that movements 2 and 3 complete on projections 1.27 or 1.618. Correction of movements 1 and 2 - at the levels of 0.618 or 0.786. In the real market, models with ideal proportions are quite rare. Therefore, if you want to really earn money, get used to the fact that book "idealized" patterns in the real market are very rare. You need to be able to trade what is, and not what you want. This model has a greater predictive property if it is in the expected end of the trend. Typically, the formation of the “Three Movements” is a signal that the market already does not have enough strength to continue the trend and perhaps the beginning of at least a correction. This harmonious Three Movement pattern has two varieties: 1) Bearish pattern . 2) Bullish pattern . LTC / USD 1 day. Harmonious bearish pattern "Three movements" ( ascending channel ). In the example, we see that the upward trend price has broken, which triggered a trend reversal. ETH / USD 1 day. Harmonious bullish pattern "Three movements" ( downward channel ). As we see, the next correction wave reached the resistance line of the downward channel . The target is taken. Learn to “predict” a more likely future. Always have different options for your work in a given situation. Work according to the basic plan, based on the situation that is being implemented. In order to trade in a market in which the deposits of most traders are destroyed, you must have vast experience, and be a whole head taller for the rest.
Education
by SpartaBTC
2
EDUCATION + WORK Harmonious pattern ABCD + "Three movements" BATI wrote a series of articles on harmonious patterns. On the coin, which I trade from time to time for about two years, a harmonious ABCD pattern is now formed. I decided to publish the information here on the site. I combined a teaching idea with a trading one. Immediately I showed the options for working on a coin, so as not to spam trading ideas and spend time on it. Below I will describe in detail. First, on working on the tool, and then below I will give a little training material. I’ll cut the text as much as possible, as I understand that people don’t want to read a lot of text, for some people this is an overwhelming task)))). On the chart itself, I showed potential movements depending on the retention / breakout of local support / resistance levels. ______________________________ 1 work option. The price has almost reached point D, which could become a potential pivot point in this local movement. ABCD is nothing more than part of the movement in the channel. Channel width 100%. Therefore, in case of confirmation of point D and a price reversal, the potential first profit is + 100%. If this happens, then the ABCD pattern is reorganized into a harmonious pattern of "Three movements." I have shown the areas of potential reversal and observation on this chart. 2 option work. A variant of work if the ABCD pattern is not confirmed and point D does not become a price reversal zone. The formation of a triple bottom. Pivoting bullish shape. The downward stopping zone I showed on the chart. I doubt that it will be pierced, how this will ruin the canvas for the work of the "artist" in the future. To an important zone of resistance and confirmation of this figure + 100% Full working out of the figure triple bottom + 300%. Option 3 (unlikely) If the price breaks through the support zone (green area) and is fixed in a downward movement below it. Then you should forget about trading this cryptocurrency and "turn gray on the fence" until a good entry point appears. But even in such a situation, when they will do a "trick", you can partially take the movement + 40%. Note that in any movement options with the correct entry points (reversal zones), the risk is minimal, the profit is maximum, both locally in movements, and is possible when the trend develops and in the global one. ____________________________________ The previous trading idea for this coin in this pair, which gave + 40%. Actually now, as in the global price forms a symmetrical triangle , this downward movement is nothing more than a pullback after breaking the triangle up. The result after a while + 40%. The same coin is only a trade for bitcoin. BAT / BTC Fractal 2019. History repeats itself. Potential + 180% And the result is + 40% and now rollback. Notice, everything goes according to the fractal plan. ___________________________________________________________________________ LEARNING MATERIAL on the theme of harmonious patterns ABCD and "Three movements". 1) ABCD pattern. This is the simplest version of a harmonious pattern. Nevertheless, the figure is an important brick on the way to understanding the principles of constructing harmonic figures and, moreover, is part of most of them. ABCD is a reversal pattern foreshadowing a change in market trends. That is, the figure helps to predict when the price ends the growth and prepares to fall, or vice versa, completes the fall and prepares for growth. A key feature of the pattern is the symmetry of the AB and CD knees. The figure begins with a rise or fall in price on the segment AB. The BC segment is usually a sharp correction, the size of which should fit in 38.2% - 88.6% of AB. Ideally, the size of the correction should be from 61.8% to 78.6%. At point C, the price reverses and continues to move parallel to segment AB. In this case, point D should be in the range of 113% - 261.8% of the knee BC. The main rule is to observe the symmetry of the pattern. Ideally, the length of the elbow CD should be fully consistent with the length AB. That is, it means matching both in time and in price. Rules for trading a pattern: 1) The length AB should correspond to the length of the CD. 2) The time it took for the price to go from point A to B should be similar to the time from C to D. This harmonious ABCD pattern has two varieties: 1) Bearish pattern. 2) Bullish pattern. Bearish ABCD pattern gives a sell signal. Bullish pattern ABCD gives a buy signal. TNT / USD 1 day. Harmonious bearish pattern ABCD. ETH / USD 1 day. Harmonious bullish ABCD pattern. In real trading on the market, there are a variety of variations of this pattern. But, it’s a good rule to observe the corresponding sizes of AB and CD corrections, since it is much more difficult to trade an asymmetric pattern. Asymmetric, incomprehensible patterns are better to skip. If I trade such formations, then without a Fibonacci grid, I do not need it. I already see what she has to show. In most cases, this is a working analysis tool and at the beginning of your analysis you should use a Fibonacci grid. In trading these formations, I use strong support / resistance levels, the symmetry of this formation and healthy logic in the calculations. Tradingview has a template for this harmonious ABCD pattern and the "three movements" pattern. This simplifies the work and makes it possible to quickly search for this formation on the chart. ______________________________________ 2) Model of the pattern "Three movements". The Three Movement model is a fairly well-known pattern. Its analogues can be found in wave analysis (diagonal triangle) and the book of Linda Raschke (three Indians). It is very reminiscent of ABCD, as if a continuation of this formation. This is a price movement in an upward or downward channel. In the framework of harmonious trading, we consider this model taking into account the Fibonacci ratios. In the classic version of the "Three Movements" pattern, it is provided that movements 2 and 3 complete on projections 1.27 or 1.618. Correction of movements 1 and 2 - at the levels of 0.618 or 0.786. In the real market, models with ideal proportions are quite rare. Therefore, if you want to really earn money, get used to the fact that book "idealized" patterns in the real market are very rare. You need to be able to trade what is, and not what you want. This model has a greater predictive property if it is in the expected end of the trend. Typically, the formation of the “Three Movements” is a signal that the market already does not have enough strength to continue the trend and perhaps the beginning of at least a correction. This harmonious Three Movement pattern has two varieties: 1) Bearish pattern. 2) Bullish pattern. LTC / USD 1 day. Harmonious bearish pattern "Three movements" (ascending channel). In the example, we see that the upward trend price has broken, which triggered a trend reversal. ETH / USD 1 day. Harmonious bullish pattern "Three movements" (downward channel). As we see, the next correction wave reached the resistance line of the downward channel. The target is taken. Learn to “predict” a more likely future. Always have different options for your work in a given situation. Work according to the basic plan, based on the situation that is being implemented. In order to trade in a market in which the deposits of most traders are destroyed, you must have vast experience, and be a whole head taller for the rest.
Education
by SpartaBTC
3
W bottom BTCUSD SHORT We have yet another W bottom; certainly a common theme in the hundred and dozen or so publications I’ve done this far. Frustratingly trying to deal with this glitch that’s slicing my publications and rap as well as followers and all that stuff into two different accounts also preventing me from intraday trading on my pro account ironically so while they get sorted out (Check my chainl link publication for more info - Case anyone wondering why I feel the need to mention this is strictly due to the four or five people that actually read my publicationsCase anyone wondering why I feel the need to mention this is strictly due to the four or five people that actually read my publications so I did not want them to feel like I have been in them so rest easy loyal friends —- did not want them to feel like I have abandoned them, more like a temporary sabbatical while I sort this issue out. In the meantime I would implore you to check my Twitter/Linkdeln for any updates. I take it in this matter will be resolved within the week. W bottom signaling parabolic movement and time frame shows the short position I would take for anyone looking to dump before retracement and as always read horizontal represents the stop loss which is the figure you should always go for— Regardless of how bullish you believe the market is. Trade safely have a wonderful day and DM me if you have any questions or concerns. Happy birthday to my brother/best friend, Adam! Ll Peace & Love -@a1mTarabichi Disclaimer Market is extremely volatile so please keep that in mind do not FOMO or FUD and this is not financial advice. - Note: My main account just like all my other handles I. E. Twitter/ Linkdeln (among others) Is – a1MTARABICHI The glitch/duplicate account is identical just minus the M & 1 so “atarabichi” And so just pay attention to the same one that I’ve always been posting on there and that is the main one (Also the only one with the pro green badge) Hopefully does not cause too much confusion and will be fixed sooner rather than later Have a great evening once again -mT
BEducation
by UnknownUnicorn1445512
PKR-USD Chart shows that Pakistani Rupee has massively DeclinedFX_IDC:PKRUSD Chart shows that the relationship between FX_IDC:PKRUSD have gone stronger. PKR has declined massively in past 12 months as per our analysis covering the Tenure of March 2018 to 2019 the period of May to July has shown massive Decline. Perhaps Bailout packages and friendly aid can might help the graph go upwards to a few bars, However the mainstream idea remains bearish against USD as IMF loan approches near we should expect more depreciation to PKR. The chart shows a little potential gains between 0.0071xx and 0.0073xx However it doesn't seems Promising enough to attract investors. Current Oscillators are highly on red side the buying orders for rupee are almost zero and if this trend keeps moving forward in next days we can expect a downard hit to 0.0065xx.. so plan wisely Sometimes you Earn the other times you learn. happy trading
Education
by CognitoBTC
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
ABCD & THREE-DRIVE EXPLAINEDHi Traders, Please find below three basic trading strategy's that can be implemented to any market on a daily basis. I have only given out basic information on the ratio's and fibonacci's of the two strategy's, should you need anymore in depth information don't hesitate to contact me. ABCD Rules Of Engagement: 1. Point C must retrace to a 0.618 of the A - B move 2. Point D must be a 1.272 projection of the B - C move 3. Buy/Sell at the D leg completion. Three -Drive Rules Of Engagement: 1. Point A should be the 0.618 retracement of drive 1 2 Point B should be the 0.618 retracement of drive 2 3. Drive 3 should be the 1.272 extension of the B correction
Education
by UnknownUnicorn180388
35
An example of how to spot a good trade #forexFriends, I haven't had time to post any of my trades in recent days. So i thought i would post some of the trades I took recently. I know this is after fact, but the aim is just to share the knowledge and experience. I made 4 trades, 3 winners and one loser. I will post them throughout the week as i am taking a small rest from markets during the election week. This is an example of finding areas of interest on the daily chart then moving to the lower time frame for the trigger. On the left hand side daily chart, by the end of october the price was testing a a key area where the long term falling trend line meets the 200-days simple moving average. At that stage, i was monitoring the pair for signs of a bearish reversal to confirm a rejection of that resistance area, especially that the daily RSI was showing a bearish divergence as well. I moved to the four-hour chart awaiting the trigger. In this particular case, the trigger was a three drive pattern that evolved and completed at 80.54. The price was making new highs but the RSI wasn't yet signalling a divergence on the four-hour chart as well. Afterwards, the price formed a small hanging man candle on the four-hour chart, and accordingly and due to all these signals it was a setup that was worth taking. I initiated a short at the opening of the candle following the hanging man. My target was at the first major daily support level. My stop was above the 1.618 extension for the latest bearish wave(x-y) as shown on chart. That resulted in a 2.7 risk to reward. I hope this example will help you think and spot better trades in the future My best regards, Technician
Education
by Technician
23
AUDNZD: An example of a high probability trade #forex #audA simple trade using a harmonic three drive and RSI. Entry for the trade has already gone. But it could be useful to point to the setups and conditions around it, because it provide a great example of combining high probability technicals to initiate a trade. The price provided a great shorting opportunity after completing a three drives pattern around 1.0770 level. A long upper wick was formed at that level confirming a high chance reversal. Meantime, RSI Divergence supported the short scenario. Also, If you take a look at the daily chart, you will see a clear rejection and long upper wicks candles for the past two days. All my ideas are just my personal view. Trade Your own view. I have no incentive to post if i don't get enough support from you. Likes and comment. You can SKYPE me at : Technician - The Forex Channel My Regards, Technican
Education
by Technician
25
The Amazing Three Drives PatternThe Three Drives patterns is one of the most powerful patterns i have encountered. : Bearish Three Drives pattern . 1) First wave is a normal bearish wave, then followed by correction 2) second wave is another bearish wave that extends beyond the first wave low and reach the 1.27 Fibonacci extension for the first pullback(AB on chart) 3)Then the most important wave is the third wave, which extends beyond the second wave low. At this point you should be ready to monitor the price around the 1.27 extension for the second pullback wave(CD on chart). it is called the PRZ(Potential Reversal Zone). Expect an upside rebound at this area. If you add a confirmation tool like the hammer candlestick pattern at the PRZ of three drives you increase your chances even further. For Daily Forecasts, trading ideas and tutorials , visit www.thefxchannel.com Best Regards, Technician
Education
by Technician
4
EDUCATIONAL: 3 Drive PatternThe 3 Drive pattern is a 5-leg pattern. In a perfect 3 Drive pattern the XA leg will be a 0.618 to 0.786 retracement of the OX leg, the AB leg will be either a a 1.272 or 1.618 extension of the XA leg, the BC leg will be a 0.618 to 0.786 retracement of the AB leg, and the CD leg will be either a 1.272 or 1.618 extension of the BC leg. Also, the three drive legs (i.e., OX, AB, and CD) should form in about the same number of bars. We appreciate your interest in our analysis, if you agree (or not) with our work, and would like to continue reading our opinions, be part of it with your "I Like"... Thanks you! SignalSuisse www.nonsolotrading.com
Education
by TheAnonymousBanker
2