Beautiful Butterfly Tells about Targets of Buyers/ Sellers
the 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).
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).
Trade active:
SECOND buy order activate ( 0.1 lot)
Comment:
Fib level at 1.27 should increase by 50 units
Trade closed: target reached
Trade active:
SELL ORDER
Comment:
a buy order is pending 4448
Trade closed: target reached:
Target of US500 Sellers Crab
Trade active
Comment:
US500 fall more after first attempt.
last attempt for flying is next level.
last attempt for flying is next level.
Fibonacci ratios are one of the most powerful and easiest trading tools in your investor’s toolbox. It provides excellent guidance for when a trend will end and reverse course.
GOOD LUCK.
SEYED.
GOOD LUCK.
SEYED.