The 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
:
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