A worked example that explains the rule, not a stock price. The circle marks the first close beyond the level. The blue line is the target. The orange line is the invalidation. Prices are in the right-hand column, and sessions sit under the volume bar.Hollow green candles closed above their open, and filled red candles closed below it.
Numbers in the example chart
From the same calculation that draws the shape and writes the "Measuring the target" section below.
Trigger level
$82 · at the close of session 56
Target
76$
Invalidation
94$
Chart span
70 sessions
What it is
Three proportional rising drives separated by equally proportional pullbacks, then a break of the line joining the lows of the two pullbacks.
Proportion is the definition: each pullback retraces about 61.8% of the leg before it, each leg runs 1.27 to 1.62 times the pullback before it, and the timing is similar.
When the trigger starts and when it fails
Signal
A close below the line joining the two pullback lows (C1-C2 line) after the third drive.
First driveA rise that sets the unit length for measuring the next two drives.
First pullbackRetraces about 61.8% of the first drive. Its low C1 is the first point on the line that will break.
Second drive and second pullbackA higher high of similar length to the first, then a pullback of the same proportion. Its low C2 completes the line.
Third drive and breakdownA third high at the same rhythm, then a close below the C1-C2 line. Before the break, it is just one more drive in an uptrend.
Recognition rules
Three higher highs (the first, second and third drives) in an existing uptrend.
Each of the two pullbacks (C1 then C2) retraces about 61.8% of the drive before it. The retracement (Retracement) here is approximate, between 56% and 67%.
Each leg runs 1.27 to 1.62 times the pullback before it.
The drives are close in time, within a fifth of each other, and so are the two pullbacks.
Confirmation is a close below the line joining the two pullback lows (C1-C2 line) after the third drive.
Measuring the target
The first target is the low of the second pullback C2, then C1 after it. In the example the C1-C2 line breaks near $82, so the first target is $76, and the pattern fails on a close above the top of the third drive at $94.
Where it fools you
Every uptrend makes three higher highs. If length and timing are not proportional, it is a trend, not a pattern. Selling at the third drive before the C1-C2 line breaks may run into a fourth drive.
The ratios are approximate. Demand exactly 61.8% and you will never see the pattern. Be too loose and you will see it on every chart. The test is how close the three drives are to each other.
The three drives show a trend that is slowing. If the third drive comes on higher volume than the second, demand has not faded yet. The breakdown decides, not the number of highs.
Open the daily timeframe for any symbol and draw the pattern yourself. Your drawing is saved per symbol in your browser, and the terminal does not name or detect the pattern.
╱ TrendlineC1-C2 line
⇕ MeasureTarget equals pattern height
We do not detect chart patterns with a numeric rule: telling them apart takes judgment on the chart. Candlestick patterns with a numeric rule are detected daily by the candlestick pattern scanner.
Mirror image: Three Drives to a bottom
The same pattern turned upside down, with the same rules in the opposite direction: what was a top becomes a bottom, and the trigger, target and invalidation all flip direction.
We use cookies and Google tools to measure visits and campaign performance, so we can build what actually helps you. The platform works fully whatever you choose. Details
Hello 👋Our team is online now
Ask us about the free trial, subscribing or a specific tool, and we will walk you through it step by step.
Before you go
Get the market reading when it's worth sending
We don't send daily just to fill your inbox. When the market read changes enough to deserve attention, it reaches your email, along with the data it was built on.
We don't share your email with anyone · every message has a one-click unsubscribe link
