It is another variation to the Gartley and Bat pattern and it is recommended to read them before reading it. (Attested below Gartley and Bat Pattern)
The main rules of the Bullish and Bearish Butterfly patterns are as follows:
Butterfly Rules: AB can retrace up to 78.6% of the XA leg BC can retrace between 38.2% – 88.6% of AB CD can be an extension of 1.618% – 2.618% of AB CD can also be an extension of up to 1.272% – 1.618% of XA leg The point D is known as the PRZ or Potential Reversal Zone
The pattern can be used in all markets and at any time frames with most accuracy.
Purpose: To share quality information within community that may help individual trader to learn more and take inform decisions in order to generate consistent positive results.
Practice the above said chart pattern and share it below with us.
@AbhishekHSinghCMT, Thank you Mr. Elliott Waves Guru :), I sincerely appreicate your work and command over Elliott Waves Theory, Keep it up Abhishek, Regards
Interesting and thank you very much. Its amazing how important Fib ratios are in trading and to help in anticipating rebounds and targets.
NeeteshJain
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@ShanTrader, You pointed on rightly, Fibs Ratios are core of harmonic patterns as Fibonaaci Levels denotes psychological behavior and sentiments of each trader. Regards
aks85
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Great work buddy. You have put it across brilliantly.