Add 3 Drive Harmonic Pattern Indicator in RTM Style for Trading View - Free - [Trading Finder]

The Three Drive Harmonic Pattern Indicator (Three Drive) is a powerful reversal pattern in the RTM style that was designed and developed for the Trading View platform. This indicator identifies the formation of the three-drive pattern and provides traders with entry signals. The bullish three-drive pattern is formed when three lower lows are created, while the bearish three-drive pattern is formed by making three higher highs. Traders can quickly identify this strong reversal pattern using the indicator and enter trades when the price reverses.

3 Drive Indicator Table

Bullish 3 Drive Pattern

The 4-hour USD/JPY chart, the price moves towards a significant support level and forms a bullish reversal Three Drive pattern. This pattern indicates weakening selling pressure and increasing buyer strength. The Three Drive Indicator issues a buy signal after forming the third low in the support area. In this pattern, the price is downtrend, creating lower lows. The second low penetrates below the first low's area and the third low forms within the second low's area. This situation indicates reduced selling pressure and a potential trend reversal. RTM-style traders can use the signal from the indicator and enter a buy trade at a suitable entry point after the pattern fully forms. The profit target is typically the area from which the downward move started and the highs formed during the pattern's formation.

Bearish 3 Drive Pattern

In the 1-hour NASDAQ chart, the price starts to move downward after forming a Three Drive pattern in an uptrend. The Three Drive Indicator identifies and plots this pattern on the price chart, issuing a sell signal. This signal indicates the entry point for a sell trade (SELL). A bearish three-drive pattern is formed as follows: In an uptrend, the price first penetrates the first high and creates the second high. Then, the price breaks above the second high and forms the third high. Completing this pattern indicates a potential trend change to bearish, helping traders enter a sell trade at the right time.

Indicator Settings

• Pivot Period: Pivot Period Settings (Reversal Axis)

Summary

The Three Drive Harmonic Pattern Indicator is a strong reversal pattern that allows traders to enter trades after the pattern forms. Although confirmation is not required for entering trades based on this pattern, to reduce trading risks, traders should look for this pattern within supply and demand structures or support and resistance zones. This approach increases the likelihood of successful trades and significantly reduces risk.