Our team of analysts uses these popular Fibonacci patterns to identify trend continuations and reversals, as well as find potential market entry and exit points. Click on each image below to read a description of each pattern and to learn how you can use it for discovering new trading opportunities.

You can view two groups of Fibonacci patterns, bearish (down) and bullish (up). Simply click on the name to switch between the two groups.

 

 

The bearish Three-Drive Pattern

three “drives” to a market top

Download the bearish Three-Drive Pattern PDF

What is it?

• Suggests a potential reversal of a bullish market
• One of the rare patterns where price and time symmetry are key
  • Once you know what to look for, this pattern may be easily identfiedor “jump out” at you
• Formed by three consecutive symmetrical mountain tops
  • Contains two connecting (intertwined) bearish ABCD patterns
  • Also contains a bearish butterfly pattern (completing at the third drive)

Why is it important?

• Suggests that a market may be at its most bullish, in which a more significant correction may occur
• May offer an excellent risk/reward ratio
• Pattern failure suggests a potentially strong bullish continuation may be in progress

Sounds good... So how do I find it?

First, it’s very important to remember not to “force” a three-drive pattern. Price and time symmetry are key, so the pattern should really stand out as three distinct, symmetrical drives to a top. Traders should also remember that the three-drive is far less common than a butterfly or Gartley (especially on longer timeframes).

Source: GFT

The bearish Three-Drive Pattern Rules

1. Symmetry is the key to this pattern
2. Drives 2 and 3 should be 127.2% or 161.8% extensions of the A and C retracements
3. The A and C retracements will typically be 61.8% or 78.6% of the previous swing
   • In strongly trending markets these retracements may be 38.2% or 50%
4. Times of the A and C retracements should be symmetrical. The same is true for extensions (second and third drives to the top)
5. A large price gap at anytime may be a sign that the pattern is wrong. Traders should wait for further confirmation that a top is in progress

Example 1: GBP/JPY, 2 min

Source: GFT

Example 2: GBP/JPY, 2 min

(Bearish 3-drive within the last leg of above pattern)

Source: GFT

TRADE RECOMMENDATIONS

• Trades to Watch
• Trades in Progress

currency		recommendation
GBP/AUD Medium term		Sell at 1.6759 Stop at 1.6837 Target at 1.6641
NZD/CAD Medium term		Sell at .7320 Stop at 0.7363 Target at 0.7255

• view more trades

currency		recommendation
GBP/JPY Short term Opened 3/17/2010		Short from 139.1200 Stop at 139.12 Target at 137.51
GBP/JPY Medium term Opened 3/11/2010		Short from 139.2700 Stop at 140.39 Target at 137.58
NZD/USD Medium term Opened 2/26/2010		Short from 0.7141 Stop at 0.7205 Target at 0.7055

• view more trades

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