Education

# ABCD & THREE-DRIVE EXPLAINED

FX:EURUSD   Euro / U.S. Dollar
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7251
Hi Traders,

Please find below three basic trading strategy's that can be implemented to any market on a daily basis.

I have only given out basic information on the ratio's and fibonacci's of the two strategy's, should you need anymore in depth information don't hesitate to contact me.

ABCD Rules Of Engagement:
1. Point C must retrace to a 0.618 of the A - B move
2. Point D must be a 1.272 projection of the B - C move
3. Buy/Sell at the D leg completion.

Three -Drive Rules Of Engagement:
1. Point A should be the 0.618 retracement of drive 1
2 Point B should be the 0.618 retracement of drive 2
3. Drive 3 should be the 1.272 extension of the B correction
Comment: This simple content is still something I implement in my trading plan.
these both patterns are different, three drives pattern occur at the end/exhausting end of the trend.

Three drives pattern traded at point three (with a limit order), when you pit fib at (1 to A) and you see 2 is on 1.27, then this mean when you put fib at (2 to B), you will know that the reverse will be on point 3 will be 1.27. sometimes it will be 1.618.

for AB=CD pattern your numbers are wrong.. when c point retrace om 0.618, the D point will be 1.618.. I dont know you want to make people to lose or not, but just to clarify, you need to correct your info
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thank you sir
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MubashirAhmad
@MubashirAhmad, My pleasure :-)
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when you say 0.618 does it mean 61.8% of the rise in price from point A to point B?
etc etc?
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aryahi29
@aryahi29, That's correct :-)
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TomHall
@TomHall, thanku Tom, what are the numbers on the y-axis
how could i get them on my chart is it necessary?
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Hi Tom hope you're having a great weekend, the candle close on these points play any importance to these rules at all.
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pawit11
@pawit11, Hi, I am thank you.
Candles for me are not important.
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good job mate sharing the educational stuffs....
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investwisely2016
@investwisely2016, Thanks very much.
Have a great weekend.
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