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Three Drive Pattern Detector

By LuxAlgoAug 6, 2024

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The Three Drive Pattern Detector finds and draws the harmonic Three Drives sequence: three successive drives separated by pullbacks holding proportional ratios, a structure widely watched as a reversal signal. Its defining feature is multi-length swing detection, evaluating up to 99 swing length periods simultaneously and surfacing short- and long-term formations in one pass.

How to Trade the Three Drive Pattern Detector?

  • Completed pattern: the third drive marks the potential reversal zone, bullish or bearish by direction.
  • Ratio labels: the classic anchors are the 0.618 retracement and 1.272 extension, with some sources widening toward 0.786 and 1.618; hover a label to see its exact bounds.
  • 'Ratios With Margin': displays flexible reversal areas, while strict 'Ratios' isolates the most ideal level.
  • Dashed final segments: mark overlapping patterns sharing swing points, or an older pattern adapted to the latest swing data.

The tool does not draw exits; common practice from its documentation places a stop reference at the final drive's 1.618 extension, with profit interest at the pattern's origin and its retracement levels.

Three Drive Pattern Detector Settings

  • Minimum Swing Length and Maximum Swing Length: bounds of the multi-length scan; keep the maximum at or above the minimum.
  • Retracement and Extension: the ratio windows patterns must respect.
  • Width Margin: filters segment duration; tighter percentages demand symmetry, broader ones admit more varied shapes.
  • Show Ratios: strict 'Ratios' or 'Ratios With Margin'.
  • Calculated Bars: restrict analysis to recent bars for speed, or 0 to process all history.
  • Show Dashboard, Location, Size: the last-pattern readout and its placement.

Frequently Asked Questions

Free indicator

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MetaTrader 4/5
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