EURGBP, possible 3 drives pattern

FX:EURGBP   Euro Fx/British Pound
35 6 1
Ratio confluence at D with 0.707 retracement of the initial large upward move. I expect price to reach 0.8707 before retracing again.
If there is a short explanation ----
I'm not aware of a .707 fib retracement.
What is the significance for that particular ratio confluence. ?
Thanks for your thoughts !!!!!
Wishing you lots of pips in your pocket in 2014 ~~~~~
When I am building a case for entry in a 3 drives patter I use a grading system which requires me to look for ratio confluence at D from the last AB=CD patterns and and the larger swing move. As you can see D comes right between the 0.618 and 0.786 retracement of that leg thats why It occured to me that it must be the 0.707 which is a minor Fibonacci number but still very much a valid number. So it actually gives me more confidence to enter a long position at D!. Good luck to you sir!!!
dojitrader HamzaLeith
Interesting !!!! I'll have to do some research on .707.
One more question -----
If I understand what you're saying . . .
In a 3 drive, if the 1.272 fib ext of the prior leg is the defining ratio,
is that more or less important than your proprietary rules for
consideration of this pattern ?
Thanks again !!
Many times D has the tendency to extend well beyond the 1.272 extension. So i regard it as one of several "grades" in my whole trading system for trading an AB=CD or the 3 drives pattern. So when I see 3 different ratios from 3 different "impulse" legs lining up at the same point, I regard it to be more important than a specific ratio. :-)
HamzaLeith HamzaLeith
There are ofcourse aspects which will invalidate the patterns those are: CD < AB or C > B or B > A.
HamzaLeith HamzaLeith
if CD is smaller than AB or C is higher than B.
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