In the previous article we learned about the ABCD candle pattern, and inside it also contains the three drive pattern, but this time we will try to review it more deeply, but you can read again to learn more about ABCD pattern.
Harmonic patterns often appear in the forex market if we pay close attention.
Studying harmonic patterns will provide opportunities for traders to gain profits in the forex market with good accuracy
The three drive pattern is a pattern similar to the ABCD pattern.
But what distinguishes it is that the three drive pattern has four low prices and two retracement levels
This pattern also consists of two types, namely the bearish three drive pattern and the three drive bull pattern
The basic concept is that this pattern forms three legs and has two corrections or retracements.
but in different directions for each pattern
The patterns that are formed from market dynamics may sometimes be similar, but they have not fully met the criteria to be a signal based on this three-drive pattern so that the requirements to determine this pattern are valid signals must be understood.
Bullish three-drive pattern
The bullish three drive pattern is a pattern that gives a signal for a reversal that previously occurred twice a retracement and gives a buy signal
To recognize this pattern you must be very careful because with that accuracy you will get a pattern that matches the requirements.
From the picture above, you can see that point A must be a correction as far as 61.8% of Drive 1. Likewise, point B must be a correction as far as 61.8% of Drive 2.
Then Drive 2 itself must be an extension of 127.2% from the first correction (1 to A).
When Drive 3 is formed, you can consider opening buy, and put your stop loss accordingly
It is important for you to pay attention, before deciding to open a buy position, try to check whether these requirements are met:
- The time needed for the formation of Drive 2 must be the same as the time needed for the formation of Drive 3.
- The time needed to form correction A must be the same as the time needed to form correction B.
Bearish three drive pattern
The bearish three drive pattern basically has the same pattern as the bullish pattern.
Except that the bearish pattern is the opposite of the bullish pattern
If you notice that this pattern is a reversal signal to sell.
Which previously the price movement formed a bullish pattern with a correction twice.
To determine this bearish signal according to the requirements of the three drive pattern then you need to have carefulness in determining and using the Fibonacci retracement.
For this bearish pattern, requirements are the same as the bullish pattern.
The time required for the price to move to drive 2 must be the same as the time required by the price to move to drive 3
Likewise with the correction or retracement time points A and B must be the same
Three drive pattern target profit and stop loss
Determining the profit target using these three drive pattern
You can use Fibonacci by drawing from the highest line to the lowest and determining the valid three drive pattern or not.
In addition to determining the target, profit is also important that you always trade by using the corresponding position size with money management
Stop loss is also important as part of risk management
For target profit, you can determine at level 61.8 and stop loss below leg number 3
Three drive pattern indicator
Using this indicator to determine the three drive pattern will greatly help traders
To look for three drive patterns without calculations using the manual Fibonacci
But unfortunately, I haven’t gotten any information to download the free three drive indicator,
Maybe if you are interested in finding information about this free three drive pattern indicator
I can only advise you to ask fellow traders in the forexfactory forum
If there are members who are kind and have this indicator then maybe they want to share with you
But if you have a large capital, I have got information for these three drive pattern indicator at a price of 30 $
Maybe for those of you who have a large capital, this price is quite cheap for you to buy
But for retail traders who are still in the learning stage, you might still think twice before buying this indicator.
If you are interested in buying this indicator, you can visit this page
Backtest three drive pattern
Maybe among forex traders who are still beginners will wonder, whether using a trading system to find this three drive pattern will have a high success rate?
What you need to know before you decide to use this three drive trading method, do the backtest by applying to a demo account, then this will provide lessons and more experience
Where you can apply this trading system without risk, with experience even though only using this demo account will provide experience in a variety of market conditions
Studying the three drive pattern is part of one of the harmonic patterns that forex traders use to identify markets in making trade decisions
If you use this method then you should be able to discipline in applying the trading system in accordance with the requirements mentioned in this article
Besides that, the most important thing is applying money management and risk management,
It will be in vain when you find a three drive pattern but your trading method tends to take a high risk, traders must remember that price movements are often dynamic