the three drives pattern is a reversal pattern designed to highlight times when the market is exhausted in its current move.
… the pattern has a bullish version and a bearish version.
… the pattern is composed of three waves or drives that complete at a 127% or 161.8% Fibonacci extension.
… the trade is entered in the opposite direction to the overall move, when the third drive is completed at a 127% or 161.8% Fibonacci extension.
… the stop loss goes below the 161.8% Fibonacci extension for a buy and above the 161.8% Fibonacci extension for a sell.
… draw a new Fibonacci retracement from the start of the pattern to the completion point of the pattern and take profit at the point where price will have retraced 61.8% of that distance.
The Shark pattern has the following ratios.
AB leg extends OX leg between 113% – 161.8%
BC leg extends beyond O by 113% of the OX leg
BC leg is also an extension of AX by 161.8% – 224%
… the pattern has a bullish version and a bearish version.
… the pattern is composed of three waves or drives that complete at a 127% or 161.8% Fibonacci extension.
… the trade is entered in the opposite direction to the overall move, when the third drive is completed at a 127% or 161.8% Fibonacci extension.
… the stop loss goes below the 161.8% Fibonacci extension for a buy and above the 161.8% Fibonacci extension for a sell.
… draw a new Fibonacci retracement from the start of the pattern to the completion point of the pattern and take profit at the point where price will have retraced 61.8% of that distance.
The Shark pattern has the following ratios.
AB leg extends OX leg between 113% – 161.8%
BC leg extends beyond O by 113% of the OX leg
BC leg is also an extension of AX by 161.8% – 224%