USDCAD Bearish Butterfly Achey Fackey Pattern FormationThis setup has given a few traders the achey fakey in trying to predict what pattern is forming.
Bearish Butterfly
Bearish butterfly to complete... at structure? As we know, NZDUSD is overwhelmingly bearish. This looks like a good opportunity for both pattern traders, and the trend continuation crowd.
We all know the risks inherent into blindly trading butterflies, as you are essentially buying or selling a break of structure. However this time looking left, we see some minor structure levels if we are to expand our charts, or bounce out to a higher time frame. Granted, this D completion point is not at a brick wall, laced with Kevlar and reinforced with steel girders, but it's nice to see a butterfly complete in the neighborhood of some at least minor structure.
Furthermore, at one of the swings of the long leg down out on our higher time frams, this minor structure level/D completion comes at a .382 retracement. For scaling considerations, that particular retracement is not included in the chart.
We see our butterfly pattern completes at an tail end of an ABCD move as well, building a further case for entry. We should also see RSI go oversold at that time. Stops will go above the .679 even handle for added protection, in the event that price would want to wick up and kiss the 1.618 extension of the AB leg, before ultimately dropping lower. Two contracts, with stops rolled to break even on the second contract once target one is hit. You know the drill.
