BULLISH BUTTERFLY PATTERN FORMED ON EURGBP H1
A bullish butterfly pattern has just been confirmed on eg, the alternate ab=cd pattern confirmed the PRZ
Below is the correct measurement of a valid butterfly pattern
XA retracement of b point = 0.786, price confirmed that measurement, considering that b point tolerance is (+-3%)
AB retracement of c point = 0.382 - 0.886, price confirmed 0.618 measurements,
BC projection of d leg: 1.618 - 2.24, price confirmed the maximum value of 2.24
XA projection of d leg = 1.272.
Alternate AB = CD
AB retracement = 0.618
BC projection of d = 1.618, which complements the measurement of the bullish butterfly pattern and confirmed the PRZ.
Warning signal
Although, the price is still respecting the daily trendline. But there seems to be more bearish momentum at the time of composing this analysis. The price might drop to the sl value before reversal.
Risk to reward as always 1:2
Sl below x, or to the previous resistance value
TP1 at 0.382 and TP2 at 0.618 of A TO D measurement
Apply Good risk mgt, 1 to 2%
Disclaimer: This is not financial advice, do your own analysis and confirmation
Below is the correct measurement of a valid butterfly pattern
XA retracement of b point = 0.786, price confirmed that measurement, considering that b point tolerance is (+-3%)
AB retracement of c point = 0.382 - 0.886, price confirmed 0.618 measurements,
BC projection of d leg: 1.618 - 2.24, price confirmed the maximum value of 2.24
XA projection of d leg = 1.272.
Alternate AB = CD
AB retracement = 0.618
BC projection of d = 1.618, which complements the measurement of the bullish butterfly pattern and confirmed the PRZ.
Warning signal
Although, the price is still respecting the daily trendline. But there seems to be more bearish momentum at the time of composing this analysis. The price might drop to the sl value before reversal.
Risk to reward as always 1:2
Sl below x, or to the previous resistance value
TP1 at 0.382 and TP2 at 0.618 of A TO D measurement
Apply Good risk mgt, 1 to 2%
Disclaimer: This is not financial advice, do your own analysis and confirmation