Three drives pattern

Three drives pattern

The three drives pattern consists of a series of higher highs or higher lows. It is similar to the ABCD pattern. The difference is that a Three drives pattern is made of 5 legs, while an ABCD pattern has only 4. Three-Drives is a reversal pattern, so it signals an upcoming change in a trend.

Here are the key parameters of a Three drives pattern:

  • Point A is at the 61.8% retracement of the drive 1.
  • Point B is at the 61.8% retracement of the drive 2.
  • Drive 2 is at the 127.2%-161.8% extension of A.
  • Drive 3 is at the 127.2%-161.8% extension of B.

Notice that the price should spend equal time on forming the drives 2 and 3. Corrections A and B should also take equal time.

Bullish and bearish three drive patterns

How to trade Three drives patterns

There are 2 ways of trading a Three drives pattern:

  1. You can trade the drive 3. Enter the market when you are sure that the market has formed the point B (buy in a bearish Three-Drive and sell in a bullish Three Drive). Take Profit should be around the 127.2%-161.8% extension of B.
  2. You can trade when the entire pattern is complete. Enter the market at the 127.2%-161.8% extension of B (sell in a bearish Three-Drive and buy in a bullish Three Drive). Take Profit can be put at the 61.8% Fibonacci retracement of the entire pattern.

Candlestick chart: ways of trading a three drives pattern

Frequently asked questions

  • How to open an FBS account?

    Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading. 

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward.  Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

  • How to activate Level Up Bonus?

    Open Level Up Bonus account in web or mobile version of FBS Personal Area and get up to $140 free to your account.

Latest news

What will move the market on October 18-22?

The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?

Gold Skyrocketed, USD Dropped. What Drives The Market Today?

The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.

High-Impactful Event for Forex: US Retail Sales

US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Follow us on Facebook

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera