Three Drive Harmonic Pattern Indicator on TradingView - [TFlab]

The 3 Drive Harmonic Pattern Indicator, available on the TradingView platform, is a technical analysis tool designed to detect harmonic reversal patterns within price action.
This indicator identifies three consecutive and symmetrical price movements, labeling them as Drive 1, Drive 2, and Drive 3 directly on the chart.
Upon completion of the third leg and confirmation of potential reversal signals—such as Doji candlesticks—the indicator issues a trade entry alert.

You can access the Indicator from this link:
https://tradingfinder.com/products/i...tern-reversal/

You can access the Indicator on the TradingView website:
https://www.tradingview.com/script/G...rive-Reversal/



Prop Firm DrawDown Protector : Prop Firm Capital Protection Expert MT5 |Forex Money Management: Forex Trade Management Expert MT5 | ICT Concepts Indicator MT5 |Smart Money Concepts Expert MT5 | Smart Money Trap Scanner |Get a free Expert Advisor license via Telegram and WhatsApp

Indicator Specifications
Indicator Categories:

1. Signal & Forecast TradingView Indicators
2. Harmonic TradingView Indicators
3. Chart & Classic TradingView Indicators

Supported Platform:

1. TradingView Indicators

Skill Level Required:

1. Intermediate

Indicator Type:

1. Reversal TradingView Indicators

Timeframes Supported:

1. Multi-Timeframe TradingView Indicators

Trading Styles:

1. Intraday TradingView Strategies

Applicable Markets:

1. Stock Market MT4 Indicators
2. Forex Market TradingView Indicators
3. Cryptocurrency TradingView Indicators

Indicator Overview
The 3 Drive Harmonic Pattern is constructed using three price waves, aligned with Fibonacci extension ratios of 1.27 and 1.618, which help in locating Potential Reversal Zones (PRZ).
Each drive corresponds to key Fibonacci levels, and upon reaching the PRZ during the third drive, the indicator evaluates reversal confirmation through price action signals.

1. Buy signals are shown with green arrows during anticipated upward reversals.
2. Sell signals are displayed with red arrows during expected downward reversals.

Indicator in an Uptrend
In a bullish setup:

1. The first drive pushes price downward.
2. A retracement follows, reaching around the 1.482 Fibonacci level.
3. The second drive resumes the downtrend, extending to the 1.318 Fibonacci level relative to the previous retracement.
4. The third and final drive reaches a confluence of Fibonacci levels (PRZ), signaling a potential bullish reversal.

Once confirmation patterns such as Doji or Pin Bar candles appear, the indicator triggers a Buy Entry Signal.
Example:
Bitcoin Cryptocurrency Chart

Indicator in a Downtrend
In a bearish configuration:

1. The first drive initiates an upward price movement.
2. A pullback occurs to the 1.298 Fibonacci level.
3. The second drive continues upward, reaching the 1.552 Fibonacci extension.
4. The final drive enters the PRZ, where potential trend reversal is anticipated.

Upon confirming bearish signals within this zone, the indicator provides a Sell Entry Signal, marked with a red arrow.
Example:
EUR/USD Currency Pair Chart

Indicator Settings

1. ZigZag Pivot Period: Defines the number of candles used to identify pivot points using ZigZag logic.
2. Show Valid Format: Toggles display of valid harmonic formation formats.
3. Show Formation Last Pivot Confirm: Enables confirmation requirement for the final pivot point.
4. Period of Formation Last Pivot: Sets the confirmation window in terms of candle count.
5. Show Bullish Pattern: Enables detection and visualization of bullish harmonic patterns.
6. Show Bearish Pattern: Enables detection and visualization of bearish harmonic patterns.
7. Color Bullish Pattern: Sets the visual color for bullish patterns on the chart.
8. Color Bearish Pattern: Defines the color for bearish patterns.
9. Width Line: Adjusts the thickness of the pattern lines.
10. Label Size: Controls the font size for pattern labels on the chart.
11. Switching Colors Theme Mode: Allows switching between dark and light theme for chart readability.
12. Alert: Enables notification alerts when a harmonic pattern is recognized.
13. Alert Name: Allows custom naming of alert notifications.
14. Message Frequency: Configures how often and in what format alerts are sent.
15. Show Alert Time by Time Zone: Displays alert timestamps in the selected time zone.

Conclusion
The 3 Drive Harmonic Pattern Indicator is a sophisticated and practical tool for traders employing harmonic analysis. It provides:

1. Automatic detection of harmonic structures
2. Integration of Fibonacci extensions (1.27 & 1.618)
3. Visual confirmation through price action patterns

With real-time alerts and intuitive design, this TradingView indicator supports both buy and sell entries based on high-probability reversal zones, enhancing the accuracy of trading decisions in stocks, forex, and cryptocurrency markets.