Trading for a living easy and profitable forex trading patterns, trading with different patterns make trading easy that’s the reason that Forex is giving you different tools to use them and make your technical analysis more strong and some of them are easy to understand just we should know how to draw them today we will go with two simple Harmonic patterns we will show you how to draw them and the places to use them to help you while trading.
There are lots of Harmonic patterns but today we will go with two of them.Three drive pattern .
- Three drive pattern
- The ABCD pattern
Because these two patterns are same as each other you will easily understand.
Trading for a living easy and profitable Forex trading patterns
1. Three drives pattern
Three drive patterns are explained by its name that it is based or have three legs which are known as the drives and two points of entrancement which is called correction as well.
You need Fibonacci tool a little practice on a real chart and your sharp eyes to be a good trader.
let us see the pattern in the image it will explain it very well.
Bullish three drive pattern
Bearish three drive pattern
So if we look towards the picture it will explain the three legs which are 1, 2 and 3 and the corrections A and B.
Thus The point A must be 61.8 and the distance between A and B must be 0.618.
and like that, the distance between 1 and 2 must be 1.272 and the same with 2 and 3.
So when all patterns are complete we are ready for a short trade.
The ABCD pattern
And the second pattern is the same like three drive pattern but little difference because it has Four points AB and CD.
like the above one, we need Fibonacci tool a little practice on a real chart and your sharp eyes to be a good trader.
The AB and CD are called and known as the legs and the BC is called the retracement as well as the correction.
So here is the picture to understand it very well.
The bullish ABCD pattern
The bearish ABCD pattern
Thus You can see the distance between A and C is 0.618 while the distance between the B and D is 1.272.
And if we use the Fibonacci tool on AB the BC should be 0.618 and the next line CD should be 1.272.
So The size or the length of the AB should be Equal to CD.
These two patterns are the same and easy to understand.