Butterfly Pattern Structure

The Butterfly Pattern is formed as follows:

Point X: The starting point of the movement.
Point A: The first peak or trough that the price reaches.
Point B: The price correction from Point A, usually located around 78.6% of XA.
Point C: The subsequent correction, which should be between 38.2% and 88.6% of AB.
Point D: The final point, typically found within the range of 161.8% to 261.8% of BC.

This structure allows traders to predict potential price reversal points at Point D.