Above we are seeing a wedge consolidation around 96.00. obviously inside of consolidation is when we look for patterns; and what do you know, we found a Butterfly pattern supported by a Gartley pattern in the end of the wedge, generally a wedge like this symbolizes a reversal, so we are using that as foundation that the Butterfly Pattern will complete Upon completion of the butterfly, we are likely to see a reversal down into the 1.618 extension of the butterfly's BC leg.
If you pay close attention to the analytic drawings, you will notice the two butterfly patterns drawn over each other. This is because the butterfly pattern, as well has many other harmonic patterns, have a range of extensions where they are most accurate. I am going to start incorporating this into all of my drawings to help the young traders better understand the harmonics. SO the blue area is where the chart must reverse in order to qualify as a butterfly pattern.
Now the important stuff:
I have a long position off of the Garley pattern at the end of the wedge for a gain of about 13 pips, nothing special , jut the regular Gartley pattern trade., which is a little late to get in on, so don't mind it too much.
Second I have a short placed at the current high of the Butterfly pattern, in case it decides to take an early reversal, I personally still accept that as a completed butterfly, you may have different preference. In which case, move your entry to the 1.270 extension at the D point. I have placed the stops at previous structure above the expected high of the butterfly and my limit at the 1.618 extension of the BC leg.
Thanks for checking me out, please like, comment son opinions, even if you agree, and follow for more insight !
Thanks and Good Trading.
If you pay close attention to the analytic drawings, you will notice the two butterfly patterns drawn over each other. This is because the butterfly pattern, as well has many other harmonic patterns, have a range of extensions where they are most accurate. I am going to start incorporating this into all of my drawings to help the young traders better understand the harmonics. SO the blue area is where the chart must reverse in order to qualify as a butterfly pattern.
Now the important stuff:
I have a long position off of the Garley pattern at the end of the wedge for a gain of about 13 pips, nothing special , jut the regular Gartley pattern trade., which is a little late to get in on, so don't mind it too much.
Second I have a short placed at the current high of the Butterfly pattern, in case it decides to take an early reversal, I personally still accept that as a completed butterfly, you may have different preference. In which case, move your entry to the 1.270 extension at the D point. I have placed the stops at previous structure above the expected high of the butterfly and my limit at the 1.618 extension of the BC leg.
Thanks for checking me out, please like, comment son opinions, even if you agree, and follow for more insight !
Thanks and Good Trading.