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Butterfly

Beautiful Butterfly Tells about Targets of Buyers/ Sellersthe detail is shown in the above Chart. I made this Idea based on Harmonic pattern using Fibonacci tools. The Butterfly pattern is a reversal pattern composed of four legs, marked X-A, A-B, B-C and C-D. It helps you identify when a current price move is likely approaching its end. This means you can enter the market as the price reverses direction. The above chart is a bearish version of the pattern, where you would be look to sell AMZN after the pattern has completed. X-A In its bearish version, the first leg forms when the price falls sharply from point X to point A. A-B The A-B leg then sees the price change direction and retrace 78.6% of the distance covered by the X-A leg. The Butterfly is similar to the Gartley and Bat patterns but the final C-D leg makes a 127% extension of the initial X-A leg, rather than a retracement of it. B-C In the B-C leg, the price changes direction again and moves back down, retracing 38.2% to 88.6% of the distance covered by the A-B leg. C-D The C-D leg is the final and most important part of the pattern. As with the Gartley and Bat pattern you should also have an AB=CD structure to complete the pattern, however the C-D leg very often extends forming a 127% or 161.8% extension of the A-B leg. As a trader you would be looking to enter at point D of the pattern. How to trade a bearish Butterfly To trade a bearish Butterfly pattern, place your sell order at point D (the 127% Fibonacci extension of the X-A leg), position your stop loss just above the 161.8% extension of the X-A leg and place your profit target at either point A (aggressive) or point B (conservative).
UEducation
by SEYED98
2
EURUSD: Potential to Extend Bearish Targeting Down to $0.83This is an update and continuation of this previous setup: EURUSD has reached the full target of the Bearish Butterfly it formed a few months ago and is now sitting below the lows of the range and is back below the macro trend line. There are a few options one can go with now: take full profits, take partial profits, or hold for a macro break down to the big levels below 1 dollar as it goes for a Type 2 Return, which in this case is the Gartley PCZ between 99-98 cents and the Gartley HOP level down at $0.83. I personally will opt to extend my first main TP down to around 99 cents before holding the rest until around 85 cents, as this looks to be the start of a Monthly ABCD BAMM that is confluent with the HOP at $0.83.
Short
by RizeSenpai
Opportunities Abound!The Dollar Canada pair offers a chance to capitalize on a bit of consolidation after an uptrend movement. Upon examining the daily chart, there appears to be a retest of the previous resistance, indicating a favorable buying opportunity for counter-trend traders. The 4-hour chart shows a retest of the support area, which could potentially lead to a harmonic pattern on the intraday time frame, such as the 15-minute or 1-hour chart. On the weekly chart, the Dollar Canada has a fib-3 bat pattern completing at 1.2579, hitting its resistance level. For support-resistance traders, there is a candlestick confirmation over here, which could indicate an aggressive selling opportunity. However, due to the lack of other trading ideas support, this may not be an attractive option. The daily chart shows a bearish shark pattern that has already been validated and engaged in movement, hitting the support level. Structure based traders may want to look for a buying opportunity around this zone at 1.3508. The 4-hour chart has a retest of support at 1.3495, which is a zoomed-in version compared to the daily chart. On the 1-hour chart, support-resistance traders can look for a shorting opportunity on the mini buy zone over here at 1.3529 the immediate level. The 15-minute chart provides multiple trading opportunities, including a bullish bat pattern completing at 1.3506, a bearish deep gartley pattern completing at 1.3547, and a bullish butterfly pattern at 1.3478. These opportunities can be identified by those who know how to spot them. As a suggestion, a Bullish Bat Pattern completing at 1.3506 has an initial stop-loss at 1.3492 (-14pips) and a first target at 1.3516, yielding approximately +100usd/lot for +10pips. Should the market extend upwards, a Bearish Deep Gartley Pattern is looking to complete at 1.3547, with an initial stop-loss at 1.3559 (-12pips) and a first target at 1.3530, yielding approximately +170usd/lot for +17pips. Please note that this is not a trading advice, and it is recommended that you do your own analysis before making any investment decisions.
by RaynLim