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70 Bullish Three Drives Stop Loss The stop loss limit for a Three Drives pattern is similar to a Butterfly. Since it usually occurs in price extremes, there is no prior price to gauge the stop loss. So, it is important to focus on the individual price bars at the potential completion point.  bullish three drives with stop loss: cover below 3! The stop loss for the Three Drives pattem is fairly simple. Usually, the stop loss should be placed just beyond the third drive. Since the pattem is a very clear set-up, the completion of the third drive should stick out at you in the same manner as the other two drives. If the pattem and reversal are valid, the ultimate point of the third drive should not be violated, once it is established. It is important to note that a close beyond the Three Drives pattem is very significant event. In my opinion, a close below a Three Drives set-up invalidates the pattem.
Ideal Bullish Three Drives The ideal bullish Three Drives pattem should possess Fibonacci retracements and projections at each thrust. However, these numbers will usually not be exact. If they are within a point or two, I consider the pattem to be valid. Again, the important aspect of this chart is the general symmetry.  bullish three drives: buy at 3! Sometimes, the third thrust will fail to hit the projected number exactly. In these situations, it is important to wait for a clear reversal signal. Waiting for clear confirmation can be effective because it can help vahdate reversals off this pattem and prevent a flawed execution. The first example shows how Home Depot completed a very clear bullish Three Drives pattem. The three drives were very symmetrical in price and time. Each thrust completed at approximately the 1.27 of the prior drive. Also, each drive developed over approximately one month, although the third thrust was bit extended. Despite the extension of the third drive, this pattem does stick out at you.
HOME DEPOT (HD): DAILY BULLISH THREE DRIVES   50 45 40 35  1 Jul fiug Sep Oct Nov Dtc 99 Ftb Mar fipr This is a very ideal set-up for a bullish Three Drives pattem. The price thrusts formed quite symmetrically. Also, each down thmst reversed at the 1.27 projection. The third drive exceeded the 1.27 projection slightly. It was calculated at 32 11/16 and the Home Depot reversed at 31 5/8.
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