"Three Drives" And EURJPY Bulls Could Be Out!!OANDA:EURJPY has potentially been forming quite a rare Reversal Pattern, the Three Drives Pattern, after making a Bullish Breakout of the Triangle, lets break it down!
Three Drive Patterns are very similar to ABCD patterns except for one thing, a Retracement instead of a Reversal after the CD Leg is finished!
In the CD Leg, Price creates quite a Trading Volume Gap between 172.1 - 171.8 and after Price declines from Point D (normally a Short Opportunity on an ABCD Pattern), Price actually makes a 61.8% Retracement of CD, creating Point E in that very Price Range and moves up, which "drives" a strong case that we potentially could be looking at a Three Drive Pattern!
Now that we have Point E, we can use the Fibonacci Retracement Tool to help give us an idea on where the Extension of the EF Leg could potentially end and the Fibonacci Levels suspected are:
123.6% --> 173.585
138.2% --> 173.795
161.8% --> 174.134
Once Price has made an Extension, shows Reaction, and moves Down from these levels; this could generate a great Short Opportunity!
