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Three Drives

[H1] Formation of symmetrical structure & "The 3 Drives" patternAbout this pattern - Although it was not specifically identified, one of the first references to a Three Drives Pattern was outlined in Robert Prechter’s book, “Elliot Wave Principle.” He described the general nature of price action that possessed either a three-wave or a five-wave structure. Adapted from this principle, symmetrical price movements that possess identical Fibonacci projections in a 5- wave price structure constitute a Three Drives pattern. In “The Harmonic Trader,” the patterns importance of other larger retracements and projections improved the accuracy of the pattern in real trading situations. The book was one of the first to emphasize the the critical aspect of this pattern that each drive complete precisely at consecutive harmonic ratios – either a 1.13, 1.27 or a 1.618. Also, the price legs should possess clear symmetry with each drive forming over equivalent time periods. Update status
by FX_Twist
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
Complete Nifty Analysis : When Bulls will rest ? Lets do an analysis on Nifty and how its movement will be in coming days. As we look with Eagle's view ( Daily ), Nifty has been bearish from Feb'15 to Mar'16. For an year Nifty has been completely bearish Trend. Some companies posting good performance results has driven Nifty to current levels from the lows of 6700's. But tats not only reason for recent bull run. Better Monsoon expectations, Federal reserve creating buzz about raise of interest rates and postponing everytime, Foreign investors faith in Indian economy and buying @ lower levels of market - all contributed to this bull run. But how long this Nifty Bull can run without break ? Well, in my view ( I can be wrong also) The markets are just waiting for some reason to tumble down to retest 7500-7700 zone. But we should also note that there is very strong resistance turned support zone in 7900-8000's which is difficult to break bcos psychological level too. If we look on technical side, there are 3 Scenario's I have noticed : Scenario 1 : (Fibs) Though for short term we have seen bull-run, we haven't breached 61.8% Fib levels of Larger swing move & 78.6% Fib levels of Fib 2 in same area, if you notice keenly Nifty faced resistance around those fib levels and dropped to 8170 from 8300. 130 point drops are normal but the area where it turned down is Fib levels which makes the case interesting. Fib 2 drawn on smaller move and its 50% Fib levels & 61.8% of Fib 1 levels drop in the resistance turned support which is 8000's. Markets can retest this 8000, before continuing its bull run. Scenario 2 : (Trend Lines) Nifty retested trendlines 3 times in this current upward move and another retest is also possible which falls again in same 8000 levels (marked no.6 in chart). But have you noticed the harmonic play there ? Scenario 3 : (Harmonics) There is Bearish 3 Drive Pattern formation but everyone uses different ratio's so its upto you to decide on that. Similarly, ABCD pattern formation again depends on how you use your ratio's. Overall, Nifty touching 8000 seems imminent but if it breaks that zone its all together different story which we will discuss later after markets reaching 8000's.
NSE:NIFTY
by InsiderB
10
Counter-Trend Gold : Bullish 3 Drive & ABCD Pattern (Hourly)This one is counter trend trade with ABCD pattern completion in 1190-1205's zone which is the last support, if broken XAUUSD Gold will fall to next support zone. If the chart is looked in bird's view we can spot Bullish 3 drive pattern getting completion in same zone. I am not expecting too much of bullish run from this idea bcos Fed meeting is within 15 days, so I will be booking some early profits in XAUUSD and keep partial positions Happy Trading !
FX:XAUUSDLong
by InsiderB
EURUSD - Potential Trend Continuation Opportunity 15 MI have my eyes on a potential 3 drives pattern on EURUSD 15 M, that is aligned with 0.786% Fibo of the last bearish move. If we add 1.618 Fibo Extension of the 2nd wave, look left you will see a small structure zone. If we combine all then we will get a nice kill zone. In this kill zone I'll be looking for a short entry - the more conservative you can wait for Double Top or perhaps 2168, the more aggressive of you can enter once price is in the kill zone - you will get more than 1:1.5 R/R. If you're patient you will get a nice Trend Continuation Opportunity. Good Luck.
Short
by Aleksandar_Rose