So I've been studying harmonics recently and have been waiting for this Butterfly to play out on the 4 hour chart, finally reached the 1.272 extension late Friday so ill be waiting for price action to take the short down to the 61.8 retracement of the AD leg of the pattern to about the 9650 region.
I'll be keeping a tight stop loss of about 50 pips away as when these patterns fail they fail hard and could end up going to the 1.618 extension, hence while ill be waiting for confirmation for the short off the 1.272 for a potential 550 pip reward so a nice 1:10 risk reward ratio.
Again just an idea as i am relatively new to trading these advanced patterns so any advice or critique then fire away :)
I'll be keeping a tight stop loss of about 50 pips away as when these patterns fail they fail hard and could end up going to the 1.618 extension, hence while ill be waiting for confirmation for the short off the 1.272 for a potential 550 pip reward so a nice 1:10 risk reward ratio.
Again just an idea as i am relatively new to trading these advanced patterns so any advice or critique then fire away :)