taken short on completion of the third wave ................targeting 61.8 retracement from the start of the pattern to the completion point of the pattern.
harmonic three drives pattern
the three drives pattern is a reversal pattern designed to highlight times when the market is exhausted in its current move.
… the pattern has a bullish version and a bearish version.
… the pattern is composed of three waves or drives that complete at a 127% or 161.8% Fibonacci extension
.....the trade is entered in the opposite direction to the overall move, when the third drive is completed at a 127% or 161.8% Fibonacci extension.
… the stop loss goes below the 161.8% Fibonacci extension for a buy and above the 161.8% Fibonacci extension for a sell.
… draw a new Fibonacci retracement from the start of the pattern to the completion point of the pattern and take profit at the point where price will have retraced 61.8% of that distance.