Hi TradingView community! Here we have a bearish butterfly pattern on NZD/CAD-0.28% visible on the 4 hour chart. Conditions for a valid butterfly pattern are:
AB can retrace up to 78.6% of the XA leg
BC can retrace between 38.2% – 88.6% of AB
CD can be an extension of 1.618% – 2.618% of AB
CD can also be an extension of up to 1.272% – 1.618% of XA leg
Trade management: Take profit is set at 0.382 and 0.618 retracements of AD. At target 1, half position will be closed and the stop loss moved to breakeven. Good luck!
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