# Double Three Runnings

Few traders know about double three runnings and even the ones that do know about such a pattern are skeptical about trading it as it is so powerful and the general impression is that it is rare. Well, the exact opposite is happening on the markets, and especially on the currency markets. Double three runnings are not rare, but quite often and they result in either a great trade for the ones that properly identify such a pattern or a margin call or a disappointment for the ones that are ignoring it or do not know what this is.

A double three running implies, like the name suggests a correction that has three waves and all of them are usually complex corrective waves. Such a correction is almost always being followed by an extended third wave and this is translating into a powerful move, with small (if any) retracements and the third wave that comes should be an impulsive move. That means at least one wave (usually the third wave) needs to be extended (more than 161.8% out of the previous wave).

Such a correction is misleading for the novice trader counting waves with the Elliott waves theory and the reason for that is the fact that, sometimes, the third corrective wave of a lower degree may not even come into the territory of the previous first wave. This is something weird as the vast majority of traders when they are looking for the second wave they look for the retracement to come to 50%-61.8% out of the previous wave. Well, surprise-surprise, in such situations not only that the retracement level is insignificant, but sometimes, like mentioned above, price may not even reach the territory of the previous wave.

This makes the next move to come, the extended one to be even more powerful as the 161.8% should be calculated by taking the beginning of the first wave and connecting the end of with with the end of the second wave. But if the second wave does not even retrace in the territory of the previous wave (or it does so but only for a short distance), you can imagine the outcome and power of such an extended move.

There is a strong tendency for the double three runnings to end with a contracting triangle that acts as a reversal pattern and this should be the element to watch for when looking for such a pattern.

Being a complex correcting wave, it is formed by two corrections that go against the initial trend and an x wave (also called an intervening x wave ) that is always a corrective wave and can take virtually any corrective shape, including a contracting triangle. The image below shows a possible double three runnings in the makings on the gbpusd pair, with the correction being done and now looking for the extended wave to come. Still some distance to be traveled but, like mentioned above, these patterns are not that rare like many think so and the fact that the last corrective wave of a lower degree ended with a contracting triangle makes us looking for an extended wave to the the upside. It remains to be seen is price confirms it in the end.

This piece was provided by John Williams of forexbrokershub.com where you can read in-depth reviews of major retail Forex brokers.

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