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# The Three-Drive Pattern in Harmonic Trading

AnalyticsTrade Team Last updated on 11 May 2023

## What is the Three-Drive Pattern?

The three-drive pattern is a popular harmonic trading pattern used to identify potential reversals in the markets. It is based on the Fibonacci sequence, which is a series of numbers that is used to identify patterns in the markets. The three-drive pattern is made up of three consecutive price swings, each of which is a Fibonacci number. The pattern is used to identify potential reversals in the markets, as it indicates that the market is reaching a point of exhaustion and is likely to reverse.

## How to Identify the Three-Drive Pattern

The three-drive pattern is relatively easy to identify. The first step is to identify the three consecutive price swings, which should be Fibonacci numbers. The second step is to identify the point of exhaustion, which is usually the third swing. This is the point at which the market is likely to reverse.

### The Three-Drive Pattern in Action

The three-drive pattern can be seen in action in the following chart. The chart shows the EUR/USD currency pair, which is a popular currency pair for harmonic trading. The chart shows three consecutive price swings, each of which is a Fibonacci number. The third swing is the point of exhaustion, which is the point at which the market is likely to reverse.

### How to Trade the Three-Drive Pattern

Once the three-drive pattern has been identified, traders can use it to their advantage. The most common way to trade the three-drive pattern is to enter a long position at the point of exhaustion. This is the point at which the market is likely to reverse and begin to move in the opposite direction. Traders can also use the pattern to set stop losses and take profits.

### Conclusion

The three-drive pattern is a popular harmonic trading pattern used to identify potential reversals in the markets. It is based on the Fibonacci sequence and is made up of three consecutive price swings, each of which is a Fibonacci number. Traders can use the pattern to their advantage by entering a long position at the point of exhaustion and setting stop losses and take profits. With the right knowledge and understanding of the three-drive pattern, traders can use it to their advantage and potentially increase their profits.