{"id":9688,"date":"2022-10-12T19:48:00","date_gmt":"2022-10-12T19:48:00","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9688"},"modified":"2022-10-12T19:48:00","modified_gmt":"2022-10-12T19:48:00","slug":"the-abcd-and-the-three-drive","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/12\/the-abcd-and-the-three-drive\/","title":{"rendered":"The ABCD and the Three-Drive"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">The ABCD<\/h2>\n\n\n\n<p>Let\u2019s start this lesson with the simplest harmonic pattern. &nbsp;So what could be more basic than the&nbsp;good old ABCs?<\/p>\n\n\n\n<p>We\u2019ll just pop in another letter at the end&nbsp;(because we\u2019re cool like that), and we\u2019ve got the ABCD chart pattern! &nbsp;That was easy!<\/p>\n\n\n\n<p>To spot this chart pattern, all you need are ultra-sharp hawk eyes and the handy-dandy Fibonacci chart tool.<\/p>\n\n\n\n<p>For both the bullish and bearish versions of the ABCD chart pattern, the lines AB and CD are known as the&nbsp;<strong>legs<\/strong>&nbsp;while BC is called the&nbsp;<strong>correction<\/strong>&nbsp;or&nbsp;<strong>retracement<\/strong>.<\/p>\n\n\n\n<p>If you use the Fibonacci retracement tool on leg AB, the retracement BC should reach the 0.618 level. Next, the line CD should be the 1.272 Fibonacci extension of BC.<\/p>\n\n\n\n<p>Simple, right? All you have to do is wait for the entire pattern to complete (reach point D) before taking any short or long positions.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-bearish-ABCD.gif\" alt=\"Bearish ABCD\" title=\"Bearish ABCD\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-bullish-ABCD.gif\" alt=\"Bullish ABCD\" title=\"Bullish ABCD\"\/><\/figure>\n\n\n\n<p>Oh, but if you want to be extra strict about it, here are a couple more rules for a valid ABCD pattern:<\/p>\n\n\n\n<ul><li>The length of line AB should be equal to the length of line CD.<\/li><li>The time it takes for the price to go from A to B should be equal to the time it takes for the price to move from C to D.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Three-Drive<\/h2>\n\n\n\n<p>The three-drive pattern is a lot like the ABCD pattern except that it has three legs (now known as drives) and two corrections or retracements.<\/p>\n\n\n\n<p>Easy as pie! In fact, this three-drive pattern is the ancestor of the Elliott Wave pattern.<\/p>\n\n\n\n<p>As usual, you\u2019ll need your hawk eyes, the Fibonacci tool, and a smidge of patience on this one.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-bearish-three-drive.gif\" alt=\"Bearish Three-Drive\" title=\"Bearish ABCD\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/bpcdn.co\/images\/2016\/05\/grade10-bullish-three-drive.gif\" alt=\"Bullish Three-Drive\" title=\"Bullish Three-Drive\"\/><\/figure>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Then, drive 2 should be the 1.272 extension of correction A and drive 3 should be the 1.272 extension of correction B.<\/p>\n\n\n\n<p>By the time the whole three-drive pattern is complete, that\u2019s when you can pull the trigger on your long or short trade.<\/p>\n\n\n\n<p>Typically, when the price reaches point B, you can already set your short or long orders at the 1.272 extension so that you won\u2019t miss out!<\/p>\n\n\n\n<p>But first, it\u2019d be better to check if these rules also hold true:<\/p>\n\n\n\n<ul><li>The time it takes the price to complete drive 2 should be equal to the time it takes to complete drive 3.<\/li><li>Also, the time to complete retracements A and B should be equal.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The ABCD Let\u2019s start this lesson with the simplest harmonic pattern. &nbsp;So what could be more basic than the&nbsp;good old ABCs? We\u2019ll just pop in another letter at the end&nbsp;(because we\u2019re cool like that), and we\u2019ve got the ABCD chart pattern! &nbsp;That was easy! To spot this chart pattern, all you need are ultra-sharp hawk [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[836],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9688"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9688"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9688\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}