Three Drives
•Most of us expect trends to end in some epic buying/selling climax (i.e. Parabolic blow off) However, this isn't always the case.
•There are other types of climaxes and one of the more commons ones is the three drives pattern.
Spotting a three drive pattern doesn't necessarily warrant a counter-trend position. However, with trend traders should take profit or move up stops to protect against a potential reversal. Can be used as a factor of confluence.