Three-Drive pattern
The three-drive pattern is much like the ABCD pattern, except it has three legs (now known as drives) and two corrections or retracements. Easy as pie! This three-drive pattern is the ancestor of the Elliott Wave pattern. You’ll need your hawk eyes, the Fibonacci tool, and patience as usual. As you can see from the charts above, point A should be the 61.8% retracement of drive 1.
Similarly, point B should be the 0.618 retracement of drive 2. Then, drive 2 should be the 1.272 extension of correction A, and drive 3 should be the 1.272 extension of correction B. You can pull the trigger on your long or short trade when the whole three-drive pattern is complete. Typically, when the price reaches point B, you can set your short or long orders at the 1.272 extension so that you won’t miss out!
But first, it’d be better to check if these rules also hold: The time it takes to complete drive 2 should equal the time it takes to complete drive 3. Also, the time to complete retracements A and B should be equal.
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