Butterfly Pattern , Eur/Jpy, 30 min
here we see a Butterfly pattern forming on the Euro against the Yen.
If the pattern makes it above 136.025, the pattern will be complete, in which case i have places my entry at point B , my limit at the 1.618 extension of the BC leg , and my stop at the Red D point, because at that point , we are at roughly a 2:1 risk reward ratio, also because I am going to walk away, and if the market crosses 136.025, but doesnt make it the the Black point D, I don't want my stop further out then that structure.
I have used the linear regression line as support for my Hypothesis, the chart will show you a linear regression of the last 200 moves,(or the last 100 on the hourly). The idea here is that the harmonic is also in sync with the price action style trade, giving me a better chance at correctly identifying the next move.
Thanks for tuning in, please leave me some tips, advice, or just a plain old thumbs up! AKA like comment and follow:)
Thanks again, Good Trading
If the pattern makes it above 136.025, the pattern will be complete, in which case i have places my entry at point B , my limit at the 1.618 extension of the BC leg , and my stop at the Red D point, because at that point , we are at roughly a 2:1 risk reward ratio, also because I am going to walk away, and if the market crosses 136.025, but doesnt make it the the Black point D, I don't want my stop further out then that structure.
I have used the linear regression line as support for my Hypothesis, the chart will show you a linear regression of the last 200 moves,(or the last 100 on the hourly). The idea here is that the harmonic is also in sync with the price action style trade, giving me a better chance at correctly identifying the next move.
Thanks for tuning in, please leave me some tips, advice, or just a plain old thumbs up! AKA like comment and follow:)
Thanks again, Good Trading
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