USOIL Possibility Bearish Butterfly Pattern
Updated
Stop loss should below A
How to trade a butterfly pattern?
1.Move AB should be the .786 retracement of move XA.
2.Move BC can be either .382 or .886 retracement of move AB.
3.If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC.
Consquently, if move BC is .886 of move AB, then CD should extend 2.618 of move BC.
4.CD should be 1.27 or 1.618 extension of move XA.
How to trade a butterfly pattern?
1.Move AB should be the .786 retracement of move XA.
2.Move BC can be either .382 or .886 retracement of move AB.
3.If the retracement of move BC is .382 of move AB, then CD should be 1.618 extension of move BC.
Consquently, if move BC is .886 of move AB, then CD should extend 2.618 of move BC.
4.CD should be 1.27 or 1.618 extension of move XA.
Note
Looking good for now isn't?Trade closed: target reached
Hit on point D perfectly.
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