Here on the GBPUSD im getting closer to my short orders being filled and the butterfly pattern completing. stops for me go just above the 1.414 ext and target is the .382 retrace of the A to D-leg.
Butterfly rules:
1= Atleast a .786 retrace of the X to A- leg but cannot break X.
2= Atleast a .382 retrace of the A to B-leg and can go past .382 just cannot break...
There is an extremely famous psychology paper written by Daniel Kahneman and Amos Tversky named ‘Judgement Under Uncertainty: Heuristics and Biases’ (psiexp.ss.uci.edu) (Kahneman won a Nobel Peace Prize in 1992 for his work in the field, specifically on prospect theory) which explores the decision making process.
As trading requires decisions to be made...
