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 bullish Three-Drive Pattern

three “drives” to a market bottom

Download the bullish Three-Drive Pattern PDF

What is it?

• Suggests a potential reversal of a bearish 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 identified or “jump out” at you
• Formed by three consecutive symmetrical valleys
  • Contains two connecting (intertwined) bullish ABCD patterns
  • Also contains a bullish butterfly pattern (completing at the third drive)

Why is it important?

• Suggests the culmination (exhaustion) of a bearish market where a more significant correction may occur
• May offer an excellent risk-to-reward ratio
• Pattern failure suggests a potentially strong bearish continuation may be in progress

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

First, it’s 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 bottom. Traders should also remember that the three-drive is far less common than a butterfly or Gartley (especially on longer timeframes).

Source: GFT

The bullish 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. The times of the A and C retracements should be symmetrical. The same is true for extensions (second and third drives to the bottom)
5. A large price gap at anytime may be a sign that the pattern is wrong. Traders should wait for further confirmation that a bottom is in progress

Example 1: GBP/JPY, 2 min

Source: GFT

TRADE RECOMMENDATIONS

• Trades to Watch
• Trades in Progress

currency		recommendation
USD/CHF Medium term		Sell at 1.0677 Stop at 1.0706 Target at 1.0633
AUD/USD Medium term		Buy at .9152 Stop at 0.9136 Target at 0.9175
GBP/JPY Medium term		Buy at 136.1000 Stop at 135.58 Target at 136.89

• view more trades

currency		recommendation
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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