(2H) The Three Drives Pattern // Target the fibs

CADCHF

PSYCHOLOGY OF THE THREE DRIVES PATTERN by LARRY PESAVENTO & LESLIE JOUFLAS

"All patterns are formed by crowd psychology, and it is interesting and educational to study what forms any particular pattern. The Three Drives pattern is slightly different in its psychology, as it has three tops or bottoms that must form to complete the pattern, compared to most patterns with one (or occasionally two in the cases of double bottoms and tops). It is a natural phenomenon that bulls are the most bullish at the tops of markets and bears the most earish at the bottom. When this occurs there is typically an unusual amount of news that accompanies these tops and bottoms in favor of the excess bullishness or bearishness.
The Three Drives pattern goes through an extended process of bringing in new buyers or short sellers too early at tops with successive waves and new sellers at lows or new buyers who are too early. The pattern generally makes the final wave as the last buyer has bought at the top and the last seller has sold at the bottom. This is the time then the market will appear absolutely the most bullish or most bearish. The last push up or down to form the last gasp in the market is almost like a game of hot potato, and the market has just passed the last hot potato to the last market participant before it changes direction. As the market then changes direction, each new low below the latest
swing low in an uptrend now has more bulls trapped. Conversely, each new high above the previous swing low has more bears trapped. This in itself can add fuel to a rally or decline. Usually it is not until a new trend is well under way that the news media will also change direction. "

You can check all details about this pattern at link below...

Safe Trades;

Kommentar:

First target

Trade geschlossen: Ziel wurde erreicht:

2nd target reached

Kommentar: