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Although it was not specifically identified, one of the
first references to a Three Drives pattern was outlined in Robert
Prechter's book, "Elliot Wave Principle." He described the general
nature of price action that possessed either a three-wave or a
five-wave structure. Adapted from this principle, symmetrical price
movements that possess identical Fibonacci projections in a 5- wave
price structure constitute a Three Drives pattern. In "The
Harmonic Trader," the patterns importance of other larger retracements
and projections improved the accuracy of the pattern in real trading
situations. The book was one of the first to emphasize the the
critical aspect of this pattern that each drive complete precisely at
consecutive harmonic ratios - either a 1.13, 1.27 or a
1.618. Also, the price legs should possess clear symmetry
with each drive forming over equivalent time periods.
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