Harmonic and chart patterns
Three drives pattern
Three pushes in the same direction, each separated by a pullback, often with Fibonacci proportions: a sign of exhaustion.
L’idée en termes simples
When the market keeps pushing to new highs in three similar steps, each needing a pullback to gather strength, the trend is often running out of energy.
Mode de calcul
Click the start, drive 1, pullback A, drive 2, pullback B and drive 3. The tool shows each leg's ratio to the previous one. After B it draws where drive 3 is likely to end (1.272 or 1.618 × the pullback); after drive 3 it draws the targets (back to B, then back to A) and a stop at 1.272 × the last drive.
Pullbacks A and B usually retrace 0.618–0.786 of the drive before
Drives 2 and 3 usually extend 1.272–1.618 of the pullback beforeComment l’utiliser
- After the third drive, look for a reversal, especially with divergence on an oscillator.
Tirer des conclusions
- The more symmetrical the drives in size and time, the more classic the pattern.
Exemple
A stock makes three highs about two weeks apart, each 1.27 times the previous pullback, while RSI makes lower highs: a three-drives top.
Les prix des exemples sont donnés à titre d’illustration.
Points de vigilance
- A fourth drive is possible; wait for a break of the last pullback low.
Un peu d’histoire
Described by Larry Pesavento among others in the harmonic trading tradition.
Contenu éducatif uniquement. Aucun indicateur ni aucune figure ne prédit l’avenir, et rien ici ne constitue un conseil en investissement.